Editorial
The Gist
- The impact of DEI. Current DEI trends significantly affect customer experience and brand loyalty, highlighting the risks of rolling back diversity initiatives.
- Customer experience risks. Ignoring DEI can damage brand equity and customer satisfaction, making it crucial to maintain diversity commitments.
- The importance of brand loyalty. Staying aligned with DEI trends ensures your marketing strategies resonate with diverse audiences, boosting customer engagement and loyalty.
Diversity, equity, and inclusion (DEI) initiatives among brands have been taking some heat lately. The US Supreme Court’s 2023 decision to roll back affirmative action college admissions policies, along with the passage of legislation in some states aimed at workplace diversity, triggered many companies to halt their DEI programs.
A few weeks ago, Harley Davidson outlined its relationship to DEI initiatives on X, indicating some distancing from diversity measures such as not having diversity supplier goals or hiring objectives since April 2024. It was a response to aggressive online activism from conservative activist Robby Starbucks. Starbucks has been targeting companies in a campaign against measures considered too overly progressive. John Deere and Tractor Supply also dropped their diversity initiatives, allegedly pressured online by Starbucks’ tactics.
The sharpest observation of DEI has been rollbacks in the tech sector. Meta and Google reversed their commitments that were part of a pledge of support towards addressing economic remedies after the George Floyd protests.
The impact the DEI rollbacks have on operations is clear. But do they also place essential customer experiences at risk?
The short answer is yes. They risk brand equity which ultimately plays a factor in customer experience. Rollbacks on committed DEI will ultimately hurt the customer experience (CX) in a market that is increasingly culturally diverse, has customers seeking brands that support their values and relies on these aspects in personalized marketing that successfully aligns brand and customer values. Smart marketing managers who are keeping an eye on DEI trends should look at ways to strengthen the delivery of their message to the customers who appreciate the initiatives the most.
Current DEI Trends and Their Evolution
Wikipedia defines DEI as organizational frameworks that are designed to promote the fair treatment and full participation of all people, particularly groups who have historically been underrepresented or subject to discrimination based on identity or disability. It has become an institutionalized framework in organizations as the demographics among a company’s given consumers or marketplace have become more diverse over the years.
Organizations have approached DEI in several different ways, from developing nuanced overall objectives to creating dedicated roles that manage the foundation of DEI initiatives. Organizations that leverage DEI have figured out how to establish a welcoming work environment where a diverse body of employees can feel seen and heard.
Customers have increasingly demanded businesses they select to reflect their values and interests. While many of the earlier expressions have occurred between retailers and their customers, B2B companies are realizing that their ability to attract clients also rests on their commitments to the framework as well.
Related Article: The Intersection of DEI, Marketing and Customer Experience
The Impact of DEI on Customer Experience
The benefits of a diverse, equitable and inclusive workplace do not solely apply to the workplace. DEI efforts play a significant influence on CX strategies. They serve as an element of a business’ capability to empathize with a diverse body of customers. The result is decisions and offerings that better identify and address customer needs, especially as marketers rely on personalized marketing messages and services to strengthen customer relationships.
Take brand messaging, for example. With a diverse and inclusive workforce providing input on marketing campaigns, you will gain multiple perspectives on your overall message.
As a result, marketing teams can avoid potentially launching distasteful ad campaigns that contain imagery and messaging that makes audience segments feel excluded or mocked. My posts on the messaging challenges for Starbucks and Bud Light speak to the risks of messaging missteps.
Actions like DEI rollbacks can severely derail the communication organizations must have these days — that they and their values are meant to support the customer experience.
Related Article: 5 Ways Diversity and Inclusion Impact the Customer Experience
Following DEI Trends Is Crucial for Business Success
The need to invest in DEI is not going away. The issue has been so sensitive that misreporting has already occurred. Microsoft was reported to have eliminated its entire DEI team, causing a ripple effect in the tech industry when it had previously been among the leading companies making pledges during the George Floyd era. It later corrected the news, stating that only two positions had been eliminated and that the DEI team was still intact.
Some research firms are discovering companies increasing or refining their DEI initiatives in the face of a difficult year for DEI programs following the affirmative action rulings and legal attacks on diversity initiatives. Littler, who cleverly used the phrase IE&D (Inclusion, Equity, and Diversity) for DEI, surveyed executives and discovered that nearly six in 10 respondents claim their organizations have increased their IE&D commitment and level of activity to some degree. Seventeen percent of those surveyed describe boosting their dedication efforts significantly, while more than a third (36%) have maintained their commitment and activity level since 2022.
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Moreover, studies have been indicating that diverse frameworks have been influential in improving overall company performance. According to Gartner, a recent supply chain study on diversity indicated a strong alignment between DEI and broader business objectives. Over 40% of respondents indicated attracting customers (48%) and reflecting community support (44%) as reasons for supporting supply chain diversity. Managers are increasingly recognizing that a link to diversity and bolstering customer expectations is a component of customer experience.
DEI is not about enforcing “political correctness” or addressing discrimination from operations inside the business. It's about recognizing and valuing the unique experiences that each individual brings to a business and filtering those benefits down to the customers who want to support it.
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