REACH: Understand The LGBT Audience

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LGBT Marketing John Lake LGBT Segment Leader Wells Fargo Enterprise Marketing © 2015 Wells Fargo Bank, N.A. All rights reserved. Confidential.

Transcript of REACH: Understand The LGBT Audience

LGBT MarketingJohn LakeLGBT Segment LeaderWells Fargo Enterprise Marketing

© 2015 Wells Fargo Bank, N.A. All rights reserved. Confidential.

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We are at a historic tipping point

For the first time in history, LGBT Americans are experiencing widespread equal access to the traditional “American Dream,” including marriage and raising a family. As issues such as marriage equality and LGBT civil rights protections have become mainstream, the segment has gained recognition as a part of the diverse fabric that makes up the nation.This historic moment provides companies an opportunity to establish themselves as a supportive partner to their LGBT and allied customers.

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LGBT demographics are similar to general population

Total Consumer

MarketLGBT

GenerationMillennials (1981-1995) 33% 26%

Gen X (1965-1980) 31% 38%Baby Boomers (1945-1964) 31% 33%

Silent (1938-1944) 5% 3%Ethnicity*Caucasian 76% 74%

Hispanic 18% 17%African American 14% 17%

Asian Indian 1% 1%Other Asian 5% 7%

GenderMale 49% 51%

Female 51% 49%College Education

Yes 61% 75%No 39% 25%

HH Income$20k to <$50k 37% 35%

$50k to <$100k 38% 35%$100k+ 26% 30%

LGBT 7%

Segment Proportion of Total Consumer Market

Source: 2Q2014 Enterprise Brand Tracker*Ethnicities are not mutually exclusive groups

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Census data indicates an LGBT presence in every county and state in the US Although 45% of LGBT men and 33% of LGBT women are likely to

live in a big city. Cities with the highest percentage of LGBT residents include SF,

Seattle, Boston, Atlanta and Minneapolis. Cities with the largest number are NYC, LA, Chicago and SF. (Gallup 2013)

State population percentages range from 1.7% in North Dakota to 10.0% in Washington DC. (Gallup 2013)

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All 50 States now offer same-sex couples the right to marry

Out of approximately 2 million adults who are part of a same-sex couple, 780,000 currently identify as legally married. In 2013, that number was 124,000. (Williams Institute)

63% of LGBT Americans say they want to be married now or in the future (WF Changing Landscape Study, 2015)

8% of LGBT non-married adults say they are planning to wed this year (Nielsen, 2015)

A large majority of same-sex couples planning weddings have already been together a decade or more. (Nielsen, 2015)

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Other legal protections still vary greatly by state 21 States protect gay and lesbian

employees from workplace discrimination– 18 States protect transgender employees from

workplace discrimination– 63% of Americans support comprehensive

workplace protections (HRC) Only 18 States protect LGBT citizens from

housing discrimination Only 16 states protect LGBT citizens from

discrimination in public accommodations

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Because of marginalization, LGBT consumers are often educated on where companies stand on the issues

Internal Support

Non-Discrimination policies

Benefits, including healthcare

Employee education and support

External Support

Charitable Donations and Sponsorships

Responsible Marketing

Issues Advocacy

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What is the business opportunity?

The combined buying power of the LGBT adult population: $884 Billion in 2014. (Witeck)

Note: Don’t confuse buying power with wealth– Similar income demographics to general market– More disposable income, spent differently

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LGBT Households spend more than general market householdsLGBT Households spent an average of $4,135 at retail stores in 2014, 7% more than general market.

Retail Channel Index

Book Stores 172Beverage Stores 155Convenience Stores 135Pet Stores 132Electronics Stores 128Health Food Stores 119Online Shopping 115Drug Stores 107Home Improvement 106

Product Index

Wine 148Electronics 143Pet Care 136Liquor 135Shaving Needs 132Candles 131Air Fresheners 127Beer 127Coffee 119

Nielsen: Diverse Intelligence. 2015 LGBT Consumer Report

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LGBT consumers are loyal to brands that show their support

Q: Over the past 12 months, which companies or brands have you made a conscious decision to purchase from because of their pro-LGBT policies or practices?

Community Marketing & Insights 2014 LGBT Community Survey

*Nabisco includes Oreo and Honey Maid. Amazon includes Kindle.

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For the first time, large numbers of LGBT people see raising kids in their future Immediate opportunity: 23% of lesbians and 7% of gay men are

currently financially responsible for a child under age 18. (Prudential LGBT Financial Experience 2014)

The number will grow dramatically in the coming years: 43% of LGBT Millennials would like to have children – an even higher number than general market Millennials at 40%. (Time Magazine/Yougov survey, June 2014)

Public support for adoption rights for same-sex couples has more than doubled since 1992 and currently stands at 63%. (Williams Institute, 2014)

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LGBT

Lesbians

Lesbians 25-39

Lesbians 25-39 considering starting a family

Considerations when crafting an LGBT focused message: Target Audience

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Considerations when crafting an LGBT focused message: Channels

Local LGBT Press – In Town

Local LGBT Press – Out of

town

Digital Channels

Events and Sponsorships

General Market Media

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Considerations when crafting an LGBT focused message: Creative

• Narrow the audience you are targeting • Understand the strategic insight you are addressing• Speak with an authentic voice

Thank You!

© 2015 Wells Fargo Bank, N.A. All rights reserved. Confidential.