How to strengthen brand loyalty and drive success in a diverse marketplace
Editor’s note: David Wellisch is CEO and co-founder of Collage, Maryland-based. Business intelligence platforms firm.
Inclusive marketing and cultural fluency are not optional for brands aiming for sustainable growth – they are essential. Rolling back diversity, equity and inclusion (DEI) commitments in response to political pressure could create consumer backlash, as we are seeing with consumer boycotts to various company policy changes. DEI may be driven by corporate HR and legal teams, but marketers and insights professionals leading brands face the challenge of navigating these changes while showing public support for inclusive marketing. Determining the right balance can help avoid alienating key segments and undermining long-term brand credibility and revenue growth impact.
Brands, while they have a purpose and benefit-based value prop, are in the business of growing shareholder value. Inclusive marketing isn’t about social responsibility; it’s a business imperative. To thrive, brands must evolve with the changing consumer base. According to Collage’s “Dig Deeper: Multicultural Demographics Update 2025 and America Now 2024”*:
- Multicultural spending power of Hispanic, Black and Asian Americans is growing 290%, outpacing white consumers by two times, on average.
- Specifically, Hispanic buying power is projected to reach $2.8 trillion by 2026, Black buying power $2.1 trillion and Asian buying power $1.9 trillion.
- America is more diverse than ever, with multicultural Americans accounting for 43% of the U.S. population, with 358% growth over 10 years (2013-2023).
- Over 50% of Gen Z is multicultural, with spend power projected to exceed Boomers by 2029.
Growth is simply not political.
Diverse consumers are this country's growth engine.
An overwhelming 81% of Americans believe inclusive marketing is as important or more important than it was four years ago. This sentiment is even stronger among Gen Z, Millennials, Black, Hispanic and LGBTQ+ consumers – the very groups driving cultural shifts, economic influence and brand loyalty. Black consumers are 35% more likely than the total population to look up a company’s diversity and inclusion practices before making a purchase, while Hispanic consumers are 22% more likely. Consumers are actively evaluating brands based on their actions, and performative efforts or perceived regression can significantly damage trust and loyalty.
To win in this changing environment, brands must focus on building their cultural fluency. Cultural fluency is a critical driver of brand success in today’s diverse marketplace. It is not just about representation – it is about understanding, connecting, demonstrating sustained commitment to and building authentic relationships with consumers across different backgrounds.
- Cultural intelligence is the foundation of values and beliefs that goes deeper to uncover the why and drives behavior across diverse segments.
- Cultural fluency is the ability to use cultural intelligence to efficiently and effectively connect across diverse segments.
Research shows that cultural fluency is predictive of future purchase intent and brand favorability, giving brands a strategic advantage in driving long-term growth. Trust is one of the core components of brand cultural fluency. Erosion of trust can damage customers' perceived fit, relevance and value of a brand, potentially making them less likely to be loyal to the company.
Culturally fluent brands build stronger consumer trust, sustain brand loyalty and outperform competitors by resonating more deeply with their consumers, even when external forces – such as legal challenges or political executive orders – change the environment. To win in the market, brands must take authentic, intentional actions now, demonstrating a true commitment (not just saying it). Those that invest in cultural fluency will be the ones shaping consumer preferences and market leadership tomorrow.
Brands can and should act immediately.
- Listen to your consumers today and what they are saying about your brand and channels of distribution – and understand the why behinds their sentiments, grounded in cultural insights.
- Double-down on steps to deeply understand your present and future customer base, and where their values and cultural traits overlap, so you can assess the trade-offs between generating groundswell and backlash from your marketing campaigns.
- Clearly identify your brand equity strengths that resonate with both your core and growth consumers, with a focus on cultural fluency.
- Reassess the competitive landscape on who may be sourcing share of wallet from your brand in this moment
Be brave and courageous.
Be data driven. Don’t go with your gut.
Act now to build authentically on your brand’s cultural fluency strengths.
- Focus on the jobs to be done that your product solves, with authentic real-life representation of your consumers.
- Don’t be silent. Proactively reinforce the values of your brand and the elements that have built trust and resonance with your diverse consumers already.
- Champion the importance of inclusive marketing for your company: “Winning the hearts and minds of diverse consumers = brand growth.”
Regardless of what a company’s DEI policy is, brands must embrace inclusive marketing and focus on improving their brand cultural fluency to build trust, deepen loyalty and unlock growth opportunities in an increasingly diverse, discerning and active marketplace.
*This survey was conducted among a demographically representative sample of 1,012 U.S. adults 18 and older. This survey was live on January 31-February 2, 2025.
Completed interviews were weighted by five variables: age, sex, geographic region, race and education to ensure a reliable and accurate representation of the total U.S. population, 18 years of age and older. Respondents for this survey were selected from those who volunteered to participate in online surveys and polls.