How DE&I Investments and B2B Marketing Initiatives Collaborate
In 2020, the #BLM and #MeToo movements pushed companies to accelerate progress toward setting up and achieving diversity, equity, and inclusion (DE&I) goals.
In the 2021 edition of The CMO Survey, marketing leaders of U.S. for-profit companies reported increased spending on campaigns and advertising associated with DE&I by 8.9%; this number grew to 10.7% in 2022.
In 2024, however we find that investment towards DE&I initiatives has rapidly decelerated. In the most recent edition of The CMO Survey, marketing leaders report growth in DE&I spend has slowed to 2.3% which amounts to a drop of 79% from one year ago. Likewise, only 41% of marketers expect DE&I to be a marketing priority over the next five years, down from 59% in 2021.
One reason for this sharp and sudden decline may be leaders’ view that DE&I is not delivering the desired results and the connection of DE&I investments don't seem to have a direct correlation with the organizational growth cycles.
As the chart below indicates, the return on DE&I investments appears to have weakened across employee, customer, and financial outcomes. As a result, leaders who want to use DE&I as a lever to drive business outcomes are likely disappointed and experiencing challenges gaining new budget for these initiatives.
How DE&I Investments in Marketing Have Paid Off
How can we make DE&I investments collaborate with B2B Marketing
While DE&I it's a strategic imperative, it needn't be an isolated cost center. When integrated effectively, it can significantly enhance B2B marketing efforts..
Here's how:
Diverse teams reflect diverse customers: A DE&I - focused company is more likely to have a workforce that mirrors the diversity of its target market. This allows for a more nuanced understanding of customer needs, preferences, and challenges.
Nuanced customer segmentation: Understanding the diverse needs within a target market allows for more precise segmentation and tailored marketing messages.
Empathetic marketing: By having a team with diverse backgrounds, marketers can develop campaigns that resonate deeply with different customer segments, building stronger connections and trust.
Positive public image: A strong commitment to DE&I enhances a company's reputation as an inclusive and forward-thinking organization. This positive image can attract customers who share similar values.
Authenticity and credibility: Demonstrating a genuine commitment to DEI builds trust and credibility with customers, especially those valuing ethical and socially responsible businesses.
Increased trust: Customers are more likely to trust and do business with companies that demonstrate a genuine commitment to DE&I.
Diverse perspectives: Teams with diverse backgrounds bring a wider range of ideas, experiences, and problem-solving approaches to the table. This fosters innovation and creativity in marketing campaigns.
Risk-taking and experimentation: A culture of inclusion encourages employees to share ideas without fear of judgment, fostering a more experimental and innovative marketing approach.
Inclusive workplace: A DE&I focused company is more likely to have a positive and inclusive work environment, leading to higher employee morale and satisfaction.
Talent attraction and retention: A strong DE&I commitment attracts and retains top talent, including diverse marketing professionals who can contribute to the team's success.
Relevant and resonant messaging: A diverse team is more likely to create content that resonates with a broader audience by understanding different cultural nuances and perspectives.
Authentic storytelling: Sharing stories from diverse employees can humanize the brand and create emotional connections with customers.
Global expansion: A DE&I focused company is better positioned to enter new markets, as it is more likely to understand and respect cultural differences.
Niche markets: By focusing on DE&I, companies can identify and tap into niche markets that might have been overlooked previously.
Diverse supplier base: Collaborating with diverse suppliers can lead to innovative partnerships and mutually beneficial relationships.
Community engagement: Building relationships with diverse communities can create opportunities for authentic partnerships and marketing collaborations.
DE&I is a powerful tool that can drive business growth and achieve better outcomes for the organization. By bringing together strengths of DE&I and B2B Marketing campaigns, we will find the required visibility, flexibility and discipline in organizational decision making, and achieve results that contribute to companies’ outperformance in the marketplace.
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