Research proves that lesbian, gay, bisexual and transgender (LGBT) consumers are highly brand loyal and frequent gay-friendly businesses. In fact, 94 percent will go out of their way to purchase products or services marketed directly to them.*
But how do businesses begin to market to the largest affluent market in the United States? It’s simple: know your customer and market directly to them.
- The LGBT market includes more than 19 million people with more than $800 billion aggregate spending power in the United States (Witeck-Combs 2011 study).
- Their average household income is $81,500, or about 80 percent higher than typical U.S. households (2009 CMI study)
- LGBT consumers are highly brand loyal and will go out of their way to purchase products or services marketed directly to them (Greenfield Research & Kinsey Report)
Segment trends and insights
- 71 percent of gay men and 62 percent of lesbians own a smartphone**
- Attending LGBT events are key motivators within the LGBT community**
- Approximately 3 percent of gay men and 19 percent of lesbians indicated having children under 18 living at home**
Companies must begin by entering the conversation and then build brand loyalty. To do so, you must authentically communicate your message in a way that is sincere and targeted. Below are a few successful examples that I have experienced with clients.
- Join LGBT organizations, such as the National Gay and Lesbian Chamber of Commerce (NGLCC)
- Offer discounts or specials to LGBT consumers
- Develop an LGBT email database of your customers and market directly to them with LGBT-branded advertisements
- Sponsor local, national or international Pride events
- Host a contest to send customers to a Pride event
What are some ways that you have targeted LGBT consumers? Tell us in the comments below, or tweet us using the hashtag #mcgblog.
*Source: Greenfield Research & Kinsey Report
**Source: 16th Annual Gay & Lesbian Tourism Report, Community Marketing, Inc. December 11, 2011