Inclusive brands do well, even in a polarised climate
Some marketers worry that more inclusive marketing may drive away their "traditional" audience. Evidence suggests otherwise. One piece of evidence can be found in a report called Brand Marketing Amid Political Polarization published last week by engagementlabs. The report compares Democrats’ and Republicans' sentiments about brands in face-to-face conversations.
In-Person Conversations Predict Consumer Sales
engagementlabs reports that two-thirds of all brand conversations take place face-to-face rather than online and that net sentiment is more positive in face-to-face conversations (+52) than in social media (+36). Net sentiment is defined as positive sentiment minus negative and mixed sentiment.
Not only do consumers talk more often and more positively about brands face-to-face, these conversations also drive sales, according to the MIT Sloan Management Review
Brands Polarise By Choice, Some By Accident
Some brands are loved by Democrats and disliked by Republicans, and vice versa. This can be by choice, for example by donating to political parties. Or by catering to a specific ideological group, for example CNN versus Fox News. Or by launching campaigns about a controversial topic, or by unwittingly getting caught in political crossfire.
Bud Light and Disney are two recent brands involved in well-documented political controversies. In the case of Disney the report shows that the net sentiment in face-to-face conversations is more positive for Democrats than for Republicans. However, the net sentiment among Republicans is still positive, despite protests.
Bud Light drew criticism from conservatives as well as liberals in April after a campaign with a trans influencer and their sluggish response to the backlash. As a result, Bud Light sales plummeted 30% in May, June, and July. August saw a drop of 26,7%. This is an improvement, but experts say it's still too early to tell if there is light at the end of the tunnel. However, research suggests boycotts are typically short-lived.
Inclusive Marketing Should Not Be Polarising
The Bud Light case has marketers worried that a more diverse and inclusive marketing approach may drive away their "traditional" audience.
However, inclusive marketing does not require polarising and controversial campaigns. Inclusive marketing focuses on making everyone feel welcome and appreciated as a customer.
It means representing people from all walks of life authentically in your marketing. But it goes beyond that. Your product offering, your customer experience, and your employee experience must also demonstrate that everyone is welcome, acknowledged, and valued as a customer or employee.
So expressing support for the LGBT+ community during Pride Month may be part of your inclusive marketing strategy, but it doesn't make you an inclusive brand as such. Inclusive brands consistently include genders, ages, ethnicities, cultures, body types, abilities, etc across their brand communications, product offering, customer and employee experience.
Consistently Inclusive Brands Seem Equally Loved By All
US brands cited by Kantar as inclusive leaders are favoured by Democrats and Republicans alike. While Nike, Coca-Cola and Truist Bank show no difference in net sentiment in face-to-face conversations, Dove is favoured more by Democrats than Republicans. Republicans still show a whopping +75 net sentiment for Dove.
Inclusiveness Pays Off
From product development to marketing, customer experience, to internal policies, inclusive brands embrace all people. So it shouldn't be a surprise that people speak positively about them, even in a polarised political climate.
Furthermore, strong brands can handle some heat. Many online conversations are just a flash in the pan anyway. (Except when you're Bud Light and both sides of the political spectrum turn against you.)
Sources
engagementlabs, Brand Marketing Amid Political Polarization, 2023; link to the report in the comment below
Kantar Brand Inclusion Index, 2023
CNN, More bad news for Bud Light as Modelo soars in sales, August 22 2023
New York Times, Bud Light Is No Longer America’s Top-Selling Beer After Boycott, June 14 2023
KelloggInsight, How Much Do Boycotts Affect a Company’s Bottom Line?, Jan 1 2023