Diversify Your Business For Smarter Growth

Forbes

2 days ago

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In the dynamic and often unpredictable landscape of the business world, relying on a single product, service, or market can feel like navigating a tightrope without a safety net. By strategically expanding into new markets, companies can mitigate risks associated with market fluctuations, tap into unexplored customer segments, and unlock novel avenues for revenue generation, ultimately fostering long-term stability and a competitive edge.
In my interview with Charlene Polite Corley, Nielsen's VP of Diverse Insights and Partnerships, who leads thought leadership and exclusive initiatives, she said, 'Business leaders know to diversify their investment portfolios, why not also their teams?'
According to Nielsen's research, 34% of the buying power, or $7 trillion, comes from diverse communities. The American economy is resilient because of the diversity of its consumer base.
Polity Corley encourages apprehensive organizations to think about diversity as their responsibility to their consumers. To serve the full market's potential, it is so hard to do without being inclusive.
In my interview with Stacie de Armas, the Senior VP of Diverse Intelligence & Initiatives at Nielsen, she explained the business opportunities of serving a more diverse population. For example, the Hispanic population is 10 years younger than other ethnic populations in the U.S. The Hispanic population also overindexes on loyalty, so this is a longer-term opportunity.
De Armas said, "When you have these groups of customers who haven't necessarily had the opportunity to build an affinity for your brand yet, this is where your investment is going to get you two to three times more. This is where you're going to get the bigger return on investment. Not only does it make great business sense, but it's also a great opportunity to reach out and build loyalty with customers that you haven't had a relationship with in the past."
Polite Corley said, 'Centering one community does not exclude other communities.' When you better serve one community, you better serve all communities.
De Armas made clear, 'With diversity, there are more problem solvers. Similar groups have similar ways of thinking. New ideas come from engaging people who have been historically excluded.'
Diversity is a significant driver of business growth. Engaging with historically excluded consumer groups is essential for long-term business growth as they represent untapped markets and offer greater potential for building brand loyalty and achieving higher returns on marketing investment.
Polite Corley noted, "Black and African American consumers in particular remain the most likely to buy from brands that feature someone from their identity group in their ads. With the right folks at the table with the right data involved in your strategy, these are new opportunities and ways to ensure growth."
Understanding nuanced cultural and consumption habits is crucial for effective marketing: A "copy-paste" approach to marketing is ineffective. Brands need to develop a deeper understanding of the media consumption habits and cultural nuances of diverse audiences to connect authentically and build lasting relationships. Data shows, for example, that Black, Hispanic, and Asian audiences spend significantly more time online. That is an opportunity for more online business.
Centering diverse narratives benefits everyone and creates a broader cultural impact. Focusing on representing specific communities authentically in content and advertising doesn't exclude other groups. Instead, it provides "windows" into different experiences, enriching everyone's understanding and often leading to broader cultural trends and significant financial success.