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Gay, Lesbian, Bisexual and Bisexual, And, and Transgendered Gay, Lesbian, BiseBisexxualual, andandand Transgendered (L(LGBGBT)T) Marketing GuideGuide Tools & Strategies for Successfully Reaching Your Local GLBT MarkMarkeett Created for IIABA, Inc. 2012 All Rights Reserved GLBT or LGBT? The original acronym used by this community was GLBT (Gay, Lesbian, Bisexual, and Transgendered) but more commonly today the term LGBT (Lesbian, Gay, Bisexual, and Transgendered) is being used by organizations. There is no consensus on which one is better; it’s a matter of preference. The move to shift the L (for Lesbians) to the beginning was made because in the early years of the "gay lib" movement, it was mostly run by men, and the feeling was that it focused mostly on men's issues and represented mainly men's concerns. Gay women felt marginalized and felt that there needed to be more focus on women issues. Most progressiv e organiz ations, to show su pport for lesbian concerns, switched to LGBT. As a result, this is considered the more current acronym by many in the media. However, many people are still more familiar with the original GLBT acronym. In this guide, we switch back and forth between the two, to show that they are equally important. Created for IIABA, Inc. 2012 All Rights Reserved Targeting the GLBT Market The gay population in the United States is a business owner’s dream because GLBT customers are: Affluent: The average annual income for a gay household is 20% percent higher than in a heterosexual household. Educated: They are more likely to have attended or graduated from college. Loyal: They are more likely to be loyal to brands that advertise to them. Because of this, we have put together a toolbox of marketing materials as well as recommendations on tactics to effectively target this customer in your area. Source: Business.com “Marketing to Gay and Lesbian Consumers”, 2011 Created for IIABA, Inc. 2012 All Rights Reserved LGBT Buying Power It’s estimated that gays and lesbians spend more than $600 billion every year, making this a highly lucrative market. The average annual income for a gay household is $61,000, 20.4% percent higher than in a heterosexual household. And because many GLBT couples do not have children, this increases their discretionary income. Source: Business.com “Marketing to Gay and Lesbian Consumers”, 2011 Created for IIABA, Inc. 2012 All Rights Reserved Education Gays and lesbians are more likely than the rest of the population to have had some higher education. 83% of gays and lesbians have either attended or graduated from college. This contributes greatly to their higher earning potential, which is a key reason they are an ideal marketing target. Created for IIABA, Inc. 2012 All Rights Reserved Brand Loyalty Approximately 89% of gays and lesbians are brand‐affiliated and are highly likely to seek out brands that advertise to them. Because many of them feel like they are not able to be themselves in every situation, they are more sensitive to businesses that are sensitive to their needs. The gay community is tightknit and word of mouth will travel fast if you provide good service and are welcoming. Created for IIABA, Inc. 2012 All Rights Reserved Marketing Tactics for Reaching the GLBT Market Created for IIABA, Inc. 2012 All Rights Reserved Recognize That LGBT People Already are Your Customers Gay and Lesbian persons are part of all communities, so treat them well, because world of mouth is very important in this community. Chances are, you already have many gay and lesbian customers. You will simply want to cultivate this community to brin g you incremental business. Created for IIABA, Inc. 2012 All Rights Reserved Research The Market Gays and lesbians represent a unique demographic in that they include people of all races, genders, incomes and ages‐all with different buying habits. Because the market is so diverse, it's best to decide which cross‐ section of the gay & lesbian community you want to reach, and to invest the time and resources research the market before you interact with this consumer, especially if you don’t have any previous experience with this market. Recommended Tactics: Do Your Homework Online Vis it sites tttdargeted to your lllocal LGBT community to fin d out whthat the ir interests are, and see examples of how other business are targeting this consumer and getting involved in the community. Talk to Your Current Customers If you already have customers that you know are active in the gay and lesbian community, talk to them about what you can do to improve your reach in this community. Conduct Your Own Focus Group Talk to a small group of consumers from this group, such as 6 or 8, and get in‐depth opinions on how you can better reach this group. Created for IIABA, Inc. 2012 All Rights Reserved Ensure That Your Business is Truly Gay‐friendly Be A Gay‐Friendly Employer This means having nondiscrimination policies in the workplace. For example, domestic partner or same‐sex spousal insurance for employees, and other tangible benefits. It’s important to show you’re not just good at marketing, but you’re also a good place to work. Workplace rankings provided by several GLBT organizations are followed closely by many in the community. 92% o f LGBT Americans are lklike ly to consider a bdbrand that is known to provide equal workplace benefits to all of their employees, including gays and lesbians. Have Gay Friendly Employees Make sure all of your emp loyees know t hat being “gay fdl”friendly” is part of their job description. Explain to them that they don’t need to agree with somebody’s lifestyle to provide good customer service. They just have to be friendly and treat everybody with respect. Above All, Make Them Comfortable! The key issue with this group is the fear of not being accepted. And chances are, if you are uncomfortable with them, they will be uncomfortable with you. So make sure everybody in your business is welcoming with all customers. Communities tend to be close knit and they gravitate to business that have a track record with their community, and as such are “safe”. Sources: How to Tap the $690 Billion Gay Market”, Witeck Combs Communications, 2007 Created for IIABA, Inc. 2012 All Rights Reserved Advertise In Gay Media Surveys show that gays and lesbians watch more cable TV, read more newspapers, and read more magazines than heterosexual consumers. More importantly to businesses, however, is that they also are motivated more frequently by advertisements to make purchases. Consider advertising in local gay media. To identify your local media, you can use the following resources: • Yahoo! Google, etc. • Gay and lesbian business directories, such as the Gay and Lesbian Yellow Pages • National gay media including magazines such as Out and The Advocate • Gay teliilevision networks suc h as Logo an d gay‐fifrien dly Bravo. • Media placement sites like GayMediaExpress.com can help you identify further markets Source: Business.com “Marketing to Gay and Lesbian Consumers”, 2011 Created for IIABA, Inc. 2012 All Rights Reserved Sponsor Gay Events The gay population is remarkable for its presence as a resilient and social community. That presence has an enormous economic impact, particularly within urban areas, where gays and lesbians come together to celblebra te the ir community with parades, ftilfestivals, sporting events, concerts, film festivals, conventions and more. Gay events that are ripe for sponsorship include annual gay pride parades—a global listing of which appears online at Wikipedia—as well as sporting events such as the Gay Games, community days such as Gay Day at Walt Disney World, regional events such as gay rodeos and trade shows such as the Gay Life Expo. Again, turn to your local gay media to identify possible events for you to participate. Source: Business.com “Marketing to Gay and Lesbian Consumers”, 2011 Created for IIABA, Inc. 2012 All Rights Reserved Cater Separately To Lesbians Lesbians are often left out of the marketing mix While most marketers group lesbians together with gay men for the purpose of addtiivertising to the GLBT community as a whhlole, in reality, their demographics and buying habits are quite different from gay men. They tend to have children more frequently than gay men, for instance, and to congregate in gay social spaces less often. Good places to market to them are on vacations, such as those offered by Olivia Cruises, and at events like the Dinah Shore weekdkend, the Mic higan W’Womyn’s MiMusic FilFestival and WW’omen’s Week, held annually in Provincetown, Mass. Consult your local gay media for good local places for you to reach out to them. Source: Business.com “Marketing to Gay and Lesbian Consumers”, 2011 Created for IIABA, Inc. 2012 All Rights Reserved Understand GLBT Consumers Have Different Financial Needs Savvy consumers are very loyal to someone who understands their needs, for example: – Know if your insurance provider allows for joint home or auto or umbrella insurance for unmarried couples, domestic partners, etc. – For financial planning , don’ t treat gay and lesbian couples as if all the federal rights and regulations that apply to straight couples apply to them Created for IIABA, Inc. 2012 All Rights Reserved Work With GLBT Nonprofit Organizations Consider sponsoring and working with GLBT nonprofit organizations, if your company supports nonprofit causes. Sponsorships signal shared values, and can be helpful to understand GLBT sensibilities and community priorities. 81% of LGBT Americans are likely to consider a brand that supports nonprofits or causes important to them. Sources: Commercialcloset.org, Advertising Media Program Best Practices &“How to Tap the $690 Billion Gay Market”, Witeck Combs Communications, 2007 Created for IIABA, Inc.
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