Brands know that lesbian, gay, bisexual, transgender, plus (LGBT+) people are a valuable consumer segment. Not only do we represent around $1tn dollars of spending power (almost the gross domestic product of Mexico), we are loyal. Data shows that LGBT+ consumers are more likely to shop with brands identified as LGBT+ supportive, even when they are more expensive.
But brands also pander to LGBT+ consumers during the month of June — a month dedicated to celebrating our community — while actively supporting projects that undermine our rights.
Take AT&T for example — a company happy to share news about its LGBT+ support online during Pride month. According to Progressive Shopper and Allout.org, 64% of its corporate political action committee donations went to supporting Republican causes, with more than $1m going to support anti-LGBT+ politicians in the most recent election cycle. This is performative allyship at its best.
In the context of a significant LGBT+ wealth gap, US financial institutions need to do better. We are twice as likely to be living in poverty, 30% less likely to own a home, and more than two-thirds of us will run out of savings during retirement. We do not need rainbow flags on social media: we need better financial education, fair access to credit, and products to help us pay for gender-affirming surgeries and surrogacies. Instead, banks are 78% more likely to deny a same-sex couple a mortgage, despite dedicating considerable resources toward rainbow-coloured advertising campaigns that start on June 1, but are nowhere to be seen on July 1.
Going forward, brands across all industries need to do better if they want to avoid being caught out. Access to corporate data is increasingly democratised and Daylight, the banking platform I co-founded, will soon release a new tool, Walk the Walk, that will evaluate how LGBT+-friendly each merchant is. This will offer customers alternative brands and empower them with choices, so they can walk with their feet towards brands that deliver real, meaningful support.
The LGBT+ community is experiencing a once-in-a-lifetime opportunity to live fulfilling lives without the same degree of fear that has dictated our lived experiences for generations. Brands that spend time understanding our unique needs, aspirations and life goals will find there is an economic case to provide genuine support to the community. And not just at the ballot box — brands that invest their marketing budgets into creating products that empower the first generation of LGBT+ consumers to live freely will find they build long-term loyalty and value in ways that performative allyship will never match.
The quiet consumer trend that emerged over the past decade has reached a crescendo in 2021’s first post-lockdown Pride season. After the pandemic tested our financial resilience, members of the LGBT+ community and our allies are declaring that performative efforts to show us support during Pride are no longer enough. People are demanding real support for the LGBT+ freedom and equality movements in tangible ways — consistently and year-round. Otherwise we’re marching with our feet.
Rob Curtis is CEO and co-founder of Daylight.
