Customer-Centric DEI: Engaging the Customer of the Future
Rapidly changing customers present both challenges and opportunities for DEI leaders and their businesses. B2C, B2B, and nonprofits alike can prosper by adapting their products, services, and experiences to engage the customer of the future—whether that’s a patient, client, shopper, or consumer.
The key: truly understanding your diverse customers—as much as yourselves as consumers.
The fan base of yesterday is not the fan base of tomorrow.
This research explores best practices for expanding DEI’s impact by integrating customer- centric DEI across your organization to create a more inclusive ecosystem that directly impacts your bottom line. To begin understanding the story of DEI and the customer of the future, it’s imperative to think deeply about changing demographics and preferences.
Growing Diversity of the U.S. Consumer Base
Multicultural consumers already account for nearly 40% of the U.S. population.
The U.S. Census Bureau projects that the number of Black, Latine, and Asian consumers will increase by 2.3 million each year until becoming a numeric majority.
By 2030, the non-Hispanic White population is expected to fall to 55.8%.
By 2045 the U.S. will become “minority-white.”
The growing weight of these statistics is increasingly influencing leaders in business, government, and even the media, amplifying the importance of the DEI imperative.
Intersectionality Continues To Grow in Importance
The fastest-growing racial or ethnic group is those who are biracial or multiracial, a group that will likely experience 200% growth by 2060.
These tectonic shifts emphasize the growing complexity of consumer identity and the growing need for customer-centric approaches to DEI.
Sources: US Census Bureau, Association of National Advertisers, Brookings Institution
Demographics Shifts Are Inextricably Linked to Evolving Consumer Needs and Preferences
Today’s consumers expect personalized experiences, customization options, and brands aligned with their DEI values.
Traditional demographic segmentation is no longer enough: consumers’ ethical commitments and mindsets are becoming vitally important.
Customers are increasingly prioritizing social responsibility and value.
Online campaigns with better representation generate higher ad recall.
Global consumers are increasingly emphasizing accessible content and language inclusivity.
Sources: Meta, Deloitte, McKinsey
Why does DEI matter in this context?
Because inclusion is not only critical to making the case for DEI now; it’s also key to engaging the customer of the future.
DEI: Addressing the Evolving Consumer Landscape
67% of consumers say it’s important that brands act to promote DEI
46% of consumers go out of their way to choose brands with explicit commitments to DEI
Source: Amazon
Consumers Value Personalized, Authentic Experiences
77% view customer experience to be as important as product quality
140% more spent by customers with excellent brand experiences
80% of consumers are more likely to make a purchase when brands personalize experiences
Sources: Forbes, HBR, Epsilon
Customer-Centric DEI: Engaging the Values-Based Consumer
Over 50% of consumers will switch to a competitor after a single unsatisfactory experience
82% of consumers want a brand’s values to align with their own
92% of customers are more likely to make a repeat purchase after a positive experience
42% of consumers from underrepresented groups would switch to a company committed to DEI
Sources: Zendesk, Salesforce, Harris
DEI on the Front Lines
75% of businesses with diverse frontline decision-making teams exceed financial targets.
When done right, inclusive hiring practices ensure a representative face of the organization.
Source: Gartner
DEI and Risk Mitigation
60% of retail shoppers have experienced discriminatory treatment
40% of consumers report experiencing discrimination based on their race or skin color, including being followed by staff, ignored, denied discounts, and mistaken for sales associates
65% of customers think stores fail to deliver an equally distributed assortment of products catering to different shoppers’ tastes and preferences; those with disabilities face significant barriers and particularly limited choices when making everyday purchases
Sources: Sephora, Racial Bias in Retail study
Risks of Divesting in DEI
Significant risks come with abandoning DEI in a time of increased pushback and market uncertainty.
When we’ve had to fail fast and learn fast or were called out by our fans, it’s often been because we didn’t have the right voices at the table or the necessary representation…We want to ensure that we’re mitigating risk because we’re having the conversations.
Customer-Centric DEI: From “the Vicious” to “the Virtuous” Cycle
Avoiding the “vicious cycle” of misalignment between employee and customer-facing inclusion means strategically engaging, investing in, and aligning with customer-centric DEI practices.
The Virtuous Cycle: Mutually Reinforcing Talent and Customer-Centric DEI Efforts
There’s no richer source of knowledge and inspiration than your diverse customer base; the most successful DEI initiatives involve collaboration between brands and their diverse customers.
Internal- and external-facing DEI efforts are mutually reinforcing, generating a “virtuous cycle” rooted in continuous feedback and engagement.
Improvements in inclusive workforce outcomes create a more welcoming environment for customers; at the same time, customer insights can drive DEI innovation.
Under the right conditions, employees become customers and customers become employees, boosting morale and retention while creating brand ambassadors.
Source: Forbes
5 Key Actions To Undertake To Advance Customer-Centric DEI Across the Organization
Understand your customer base: Conduct surveys and gather data to understand your current and potential customers.
Diversify your customer experience team: Hire a team that reflects the diversity of your customer base.
Train your employees on DEI: Ensure employees are equipped to handle interactions with customers from a broad range of backgrounds.
Personalize the customer experience: Use data to tailor marketing messages and service interactions to individual needs.
Market authentically: Ensure marketing materials reflect the diversity of your customer base.
5 Key Impact Areas and Business Benefits: Customer-Driven DEI
Improved customer loyalty: Customers feel valued and understood when businesses reflect their diversity. Research has consistently shown that companies with diverse staff are seen as more in tune with their customers and their needs.
Enhanced creativity and problem-solving: Diverse teams bring new perspectives, leading to better solutions for a wider range of customers.
Reduced bias: A focus on DEI helps employees avoid stereotypes and biases that can negatively impact customer interactions and the brand.
Risk management: A diverse customer base mitigates risk and creates a broader market reach.
Market expansion: Organizations can tap into new customer segments by understanding and catering to their unique needs.
Sources: Intuit, US Department of Defense, Aum, L.J. Aftén, “Embracing Customer Diversity: Unlocking Market Expansion and Sustainable Business Growth”
Looking Ahead: The Future of DEI and Success in a Changing World
To be sure, there’s noise surrounding recent headlines on DEI pushback. But as we look to the future of the customer and the employee, DEI’s impact and importance will steadily increase. As demographics shift, businesses must stay attuned to changing consumer and employee needs and preferences.
To learn more about how Seramount can help you expand the impact of your DEI efforts, contact us.
Michael Nicholson is an Associate Director, Strategic Research and Product Marketing at Seramount. As a DEI and talent researcher, he is equally committed to delightful storytelling and useful knowledge. His responsibilities at Seramount include management of thought leadership, product narratives, and other strategic research initiatives.
Michael Nicholson is a Principal, Strategic Research at Seramount. As a DEI and talent researcher, he is equally committed to delightful storytelling and useful knowledge. His responsibilities at Seramount include management of thought leadership, product narratives, and other strategic research initiatives. At Seramount and beyond, he works to create effective messaging for all. Whether in an app or a sonnet, he believes every word counts.
Prior to joining the Seramount team, Michael earned his PhD at UCLA and served as a tenure-track professor at McGill University. As Director of the Montreal International Poetry Prize, he pursued his lifelong love of inclusive storytelling and actionable insights, helping to develop and market the first app-based, character-limited global writing product.
Michael lives in Southern California with his son, Wyatt, where he enjoys hiking along the coast and advancing environmental justice. As a neurodiversity advocate, he’s always looking to connect with fellow wordsmiths with a shared passion for impactful data and accessible communities.
