Feature
The Gist
- Global necessity. Cultural intelligence is essential for success in the diverse global market.
- Deep understanding. Cultural intelligence provides a refined understanding of customers, promoting tailored experiences.
- Continual learning. Cultivating cultural intelligence requires continual exposure, learning and adaptation.
Cultural intelligence (also referred to as CQ, or cultural quotient) is a soft skill that enables brands to have respectful and effective interactions with customers from various backgrounds, ethnicities and locations. It involves recognizing and understanding diverse cultural settings, including interpreting unfamiliar communication styles and native cultures.
CQ not only benefits customer relations but also enhances and improves satisfaction, loyalty and business growth. It spans across regions and organizations, encompassing various subcultures and local customs. This article will explore CQ, discuss strategies for brands to cultivate it, examine how it can improve the customer experience and highlight the ways brands are using it.
The Importance of Cultural Intelligence in a Globalized World
In the realm of customer experience (CX), the value of understanding customers on a deep, personal level cannot be overstated. Cultural intelligence, at its core, is the ability to function effectively across various cultural contexts — national, ethnic, organizational, generational and so on. In a global marketplace that's more connected than ever, CQ isn't just an asset — it's a necessity.
Martha Bird, chief business anthropologist at ADP, a human resources management software and services provider, told CMSWire that at its most basic definition, cultural intelligence is the ability to see the world through other peoples’ eyes. "Typically, this 'seeing' involves a cultural space different from the one you are most familiar with — the one you often largely take for granted,” said Bird. “In a sense, cultural intelligence is an aptitude for embracing the unfamiliar without judgment. And, I would say it takes practice.”
CQ adds a layer of refinement to a brand’s understanding of customers. It's not enough to know what your customers are doing; you need to understand why they're doing it, and that "why" is often rooted in culture.
When it comes to customer experience, cultural intelligence could be the deciding factor in whether a brand succeeds or fails. Culturally intelligent brands can cater to a diverse customer base, tailoring experiences based on cultural nuances that less perceptive brands might miss, resulting in higher customer satisfaction, better brand loyalty and an improved bottom line.
Related Article: 3 New(ish) Ways to Think About Customer Loyalty
How Brands Are Developing and Improving CQ
Brands often use customer data and analytics to gain cultural insights. This involves moving beyond demographic data to exploring cultural values, norms and behaviors. Consider a brand that was trying to expand into new markets. Rather than using a universal approach, the brand could employ cultural intelligence to adapt its strategy. From the design of its website to the marketing campaigns, every aspect of the customer journey could be tailored to resonate with the cultural sensibilities of the target audience.
This level of customization requires a deep understanding of local cultures and can include everything from cultural attitudes toward certain products, to preferred communication styles, to purchasing behaviors during local holidays. Brands that fail to recognize such cultural traits and differences will be missing out on an opportunity at best, or offending potential customers at worst.
“As a cultural anthropologist working in industry, I’ve seen many instances where a lack of cultural intelligence has resulted in misalignment and ultimately product failure in different organizations,” said Bird. “In my way of ‘seeing,’ culture is always the final mile. You can build a product with all the bells and whistles, craft eloquent messages, and implement high-touch services, but if you fail to consider the contexts, the situations where these offerings are meant to circulate and instead opt for a one-size-fits-all approach, you are likely to miss your target or even worse, offend your audience.”
McDonald’s has been successful worldwide partly because of its ability to adapt to different cultures. For example, in India, where the majority of the population doesn’t eat beef for religious reasons, McDonald’s adjusted its menu by introducing vegetarian options and replacing beef patties with chicken or fish. This kind of cultural intelligence allowed McDonald's to gain popularity and success in a market that is significantly different from its American base.
Unilever is another example of how a brand that is grounded in CQ is more receptive to understanding factors such as economics and culture. Unilever found success in Indonesia by understanding and adapting to the local culture. The company recognized the importance of small, affordable sachet packets for their products like shampoo, which makes them more accessible and affordable for the average Indonesian consumer compared to buying full-size bottles. By adapting its packaging to suit the economic and cultural preferences of the local market, Unilever was able to significantly increase its market share in Indonesia. By being grounded in CQ, Unilever Indonesia has grown to become one of Indonesia’s largest fast-moving consumer goods companies. In 2022, Unilever Indonesia net sales were about 41 trillion Indonesian rupiah or $2.8 billion USD.
Another example of a brand that used CQ to engage its customer base is Nike. The brand created a campaign in Japan called "Minohodoshirazu," which was typically used as an insult that translated to “don't know your place” and was usually directed at people who are seen as overly ambitious. For Nike, however, it meant “not placing limits on yourself” and challenging social norms. By focusing on the stories of Japanese athletes who broke conventions, Nike was able to connect with its audience on a deeper level. This Minohodoshirazu campaign showed a deep understanding of the cultural context and the values that resonate with the Japanese audience.
Related Article: The 5 Stages of Predictive Analytics for CX Success
How DEI Drives CQ
One aspect of CQ is how it both supports and encourages diversity, equity and inclusion (DEI). Brands should invest in diversity and inclusion initiatives, ensuring their teams are as diverse as the customers they serve. After all, who better to understand the needs and preferences of a specific cultural group than someone who is part of that group?
Angelique Buster, the head of DEI at Khoros, a customer engagement platform provider, told CMSWire that fostering an inclusive environment allows brands to provide opportunities for employees to learn from diverse perspectives, broadening their understanding and challenging biases. “In addition, active participation and engagement of diverse employees enhance cultural understanding through open dialogue and collaboration. Inclusive organizations place value on individual strengths, fostering empathy and adaptability to diverse cultures.”
The cultivation of cultural intelligence is not without its challenges. It requires an ongoing commitment to learning and adaptation, and the ability to recognize that our own cultural biases can cloud our judgment. “Cultural intelligence is honed over time through exposure to people, attitudes, and beliefs different from your own,” said Bird. “Diversity, inclusion and belonging provide opportunities for ongoing learning. Let’s face it; if you only spend time with people like yourself, the likelihood of seeing things differently — from a new set of perspectives — is greatly reduced.” Bird believes that this reduction is the antithesis of cultural intelligence.”
How Brands Can Develop and Improve Cultural Intelligence
CQ is a skill that can be learned through education and practice. Brands can begin to develop and improve cultural intelligence by initially focusing on educating and training staff in cultural nuances, encouraging diversity in hiring and practicing empathy. It's also beneficial to immerse key employees in target cultures, and to be aware of regional trends and news.
Additionally, brands should conduct thorough customer research through surveys, interviews and focus groups in order to grasp local preferences and values. With this information, they can adapt their marketing strategies and products to appeal to local cultures.
Bird recommends that the people behind brands can improve cultural intelligence in part by adopting an attitude of intentional and genuine curiosity. “Seek out conversations with people different from yourself and listen to what they say and what they do,” said Bird. “You’d be surprised by how much you can learn by simply asking and observing. If your brand is designed for a specific 'audience,' it’s important to try to understand how meaning is made, what stands for “normal,” what people believe and value, and the myriad situations that produce a specific kind of local knowledge.” Bird explained that brands should start by asking why and be prepared to listen respectfully. “Your 'why' and your audience’s 'why' may well be different.”
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Developing and improving cultural intelligence requires proactive and ongoing effort, according to Buster. “Strategies and tools that can serve as guides include cross-cultural training to enhance understanding of different cultures, customs, and communication styles,” said Buster. “More specifically, immersion experiences, such as international assignments and partnerships, can help an organization build empathy and adaptability, while DEI initiatives promote a diverse and inclusive work environment.”
Final Thoughts on Cultural Intelligence
Cultural Intelligence is an invaluable asset in the global world of business. By learning to empathize, understand and effectively engage with diverse cultures, brands can tailor their products and services to appeal to a wide array of audiences. Through continual education, fostering diversity, embracing cultural nuances and employing localized strategies, brands can ensure more meaningful and impactful customer experiences.
