LGBT+ Diversity in the Business Means More Business
LGBT+ issues have been a hot topic in Australia. Last year, in response to the planned plebiscite, some businesses took a stance to support the LGBT+ community and others stayed silent — garnering both positive and negative attention. The interest in LGBT+ equality, particularly gay marriage, has not cooled in 2017, with continued political activism, further incited by international discourse on LGBT+ issues surrounding the Trump election.
What we can see is that broad community support is continuing to grow in Australia, but there is still a section of the population that have stoically remained against LGBT+ rights. This means courting the LGBT+ community can be profitable, but not without its risks, or backlash.
What does the broader community support for LGBT+ issues mean for the future of Australian businesses?
In Australia, the gay and lesbian market, or “pink dollar”, is estimated to be worth $20 billion, with just over 2.2 million Australians identified as being interested in the same sex. These statistics don’t even begin to include the broader LGBT+ community, as well as advocates and market specific services.
Not only is the LGBT+ market expected to be about 10% of the population, but they are intensely brand loyal, tend to live in metropolitan areas, well connected, and are likely to have a higher amount of discretionary income.
This makes the market attractive for businesses, particularly in B2C offerings where brand loyalty is linked to emotional spending patterns. The shorter the buying cycle, the more likely a purchase will be influenced by emotional factors. Consumers want to support a company they feel supports them, and supports those they love, and this translates to additional revenue.
How about diversity from within? What does LGBT+ diversity mean from within the business?
Developing and fostering a LGBT+ diverse corporate culture does not come cheap, and takes more than the odd email newsletter from HR. An inclusive culture that hires a diverse workforce needs to be developed through hiring new talent, continual retraining, social awareness and tolerance as well as through changing the hiring practices of existing management in the company.
It’s a costly process for mature businesses, both in time and money.
Credit Suisse released a report in 2016, showing businesses with openly LGBT+ management, companies who nominated themselves as a leading LGBT+ company, or companies whose employees are openly members of local LGBT+ business networks, out performed others in the same industry.
Credit Suisse did note this measured a correlation not a causality. Whether LGBT+ diversity is a symptom of, or, the cause of a successful corporate culture, the data shows that they are linked. A business with an openly LGBT+ diverse corporate culture is more likely to be successful than one without.
What does it mean for a business wanting to engage with the LGBT+ community?
With the Mardi Gras almost here, it’s the perfect time for a business to start engaging with the LGBT+ community. In Sydney the community has been experiencing the breakdown of ‘gay meccas’, such as Oxford St and Newtown, as the areas grow more popular to non-LGBT+ patrons. The lock-out laws further exacerbated this, as crowds displaced from CBD, including Oxford St move into Newtown and other lock-out exempt suburbs.
This hasn’t reduced the pink dollar, but it has dispersed it, creating an opportunity for businesses across broader Sydney to engage with even more of the LGBT+ community.
To engage, businesses need to be seen, and seen online, particularly on social media and other online services.
Businesses in Sydney have the unique opportunity to engage LGBT+ persons via zusa, the world’s first business diversity index. zusa allows businesses to display their diversity demographics, including whether they are ‘LGBT Friendly’. Consumers then use zusa to vote on the diversity of the business, the usual business crowd and staff, and search businesses that support ‘their tribe’.
Businesses that engage with the LGBT+ community quickly find it’s a community that gives back with high brand loyalty, word of mouth referrals and brand advocacy.
This article was sponsored by zusa. If you liked the article, please favourite by clicking on the heart symbol down below or leaving a comment. Cheers.
About zusa
zusa is the world’s first diversity business search app, free to download and use on iPhone and Android. zusa allows businesses to display their diversity demographics and to be searched by consumers through the use of personal filters and mobile location technology.
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