The Gist
- Customer experience enhanced. Integrating DEI improves customer interactions and fosters loyalty through better representation and understanding.
- Innovation drives growth. Diverse perspectives in DEI-focused companies lead to groundbreaking innovations and enhanced market adaptability.
- Ethical reputation boosts. Companies practicing DEI are viewed as socially responsible, attracting customers who value ethical standards.
Diversity, equity and inclusion (DEI) are not simply core elements of corporate social responsibility (CSR) but also key drivers of customer experience (CX) excellence. By weaving inclusive practices into every aspect of operations, businesses not only bolster their reputation but also tap into diverse customer bases, building loyalty and driving innovation.
The article will examine how integrating DEI into business strategies doesn’t just create a fairer workplace, but significantly enhances how customers perceive and interact with brands, leading to more empathetic, adaptable, and ultimately successful business environments, along with the improvement of the customer experience.
Introduction to DEI
In contemporary business today, DEI has emerged as a pivotal element, transcending beyond moral imperatives to become strategic business assets. As global markets become increasingly interconnected, the importance of DEI initiatives in shaping not just workplace cultures but also market presence is more pronounced than ever. A diverse organization encourages a broader range of ideas, perspectives, and problem-solving approaches, crucial for innovation, cultural intelligence and adaptability in our multi-faceted world.
Scott Lieberman, management consultant, founder at Touchdown Money, an online entrepreneurial service, told CMSWire that embracing diversity, equity, and inclusion practices offers businesses numerous advantages. “Firstly, it enables access to a broad talent pool that encompasses a diverse range of backgrounds and experiences,” said Lieberman, who explained that fostering inclusivity within the workplace facilitates a positive work environment, bolstering team morale and ultimately contributing to higher profitability and employee retention rates.
In addition, DEI directly influences customer experience and brand perception. Businesses that mirror the diversity of their customer base can create more meaningful connections, ensuring that products and services resonate with a wider audience. This alignment not only enhances customer satisfaction but also strengthens brand loyalty. When customers see themselves reflected in a company’s employees and values, their trust in the brand increases, leading to deeper and more enduring relationships. Thus, embedding DEI into the core business strategies is not only an ethical choice but a commercial one, with tangible impacts on a company’s bottom line and market relevance.
It’s important to recognize how DEI enriches customer interactions and loyalty strategies. Emphasizing DEI in business operations can transform standard customer service into a genuinely empathetic engagement. Businesses with diverse teams are not only better equipped to address language barriers and cultural nuances, but they also bring a wide array of personal experiences that enrich their problem-solving capabilities. This ability to understand and anticipate customer needs across different demographics leads to more tailored service offerings and a more personalized customer experience.
In addition, DEI-driven businesses are often at the forefront of innovation in customer experience design. They are more likely to recognize and implement accessibility improvements, which not only comply with legal requirements but also open markets to customers with disabilities. These enhancements can lead to product and service modifications that cater to often-overlooked customer needs, expanding market reach and driving business growth.
Companies that actively promote DEI are also perceived as socially responsible, which enhances their brand image among consumers who prioritize ethical considerations in their purchasing decisions. This growing demographic of ethically-driven consumers tends to show strong brand loyalty to companies whose values align with their own, particularly in terms of social justice and equity.
Sarah Bernard, COO and co-founder at Inclusively, a workplace personalization platform, told CMSWire that embracing diversity isn’t just a corporate responsibility — it’s a strategic imperative. “More and more, consumers are seeking more than just products; but a reflection of themselves in the brands they support,” said Bernard. “And when employees accurately reflect our communities, they bring a breadth of perspectives that enable organizations to better understand and serve the diverse needs of their customers.”
Related Article: 5 Ways Diversity and Inclusion Impact the Customer Experience
The Current State of DEI in Business
The current state of DEI in businesses reveals a significant commitment across various industries, although challenges remain in achieving widespread and consistent implementation. Businesses are increasingly recognizing the value of DEI initiatives as a strategic business advantage. That said, recently there has been pushback against DEI initiatives across industries, largely driven by political conservatism and billionaire influencers. Headlines across industries have reported budget cuts and negative reactions to DEI programs:
That said, statistics show a nuanced picture of DEI adoption in modern businesses. For instance, a survey by the Pew Research Center indicated that a majority of workers in the U.S. view increasing DEI efforts positively, although perceptions vary significantly across different demographic groups and political affiliations. This underscores the complexity and varied acceptance of DEI initiatives within the workforce. Additionally, Benevity’s 2024 State of Corporate Purpose report indicated that 86% of those polled say their company’s leaders sees employee resource groups (ERGs) as critical to culture, and that despite a wave of backlash, businesses have continued to invest in DEI — and more specifically in their ERGs — as sources of community and belonging.
Jonathan Feniak, general counsel at LLC Attorney, a business incorporation service, told CMSWire that DEI is far from dead and its best days are ahead as we move toward data-driven standards rather than simply making hollow gestures to meet quotas. “We’re seeing leaders follow multiple metrics to show their efforts are moving the needle, pushing the company forward, and demonstrating a real ROI. Ultimately, diversity improves company success, so ROI can indicate the success of current efforts.”
Leading industries in DEI practices include technology and financial services, where companies such as Microsoft and Deloitte have made substantial progress. Microsoft reported an increase in diversity across its workforce, especially in leadership roles, which is a result of intentional strategies to enhance representation and inclusivity. Deloitte, in its 2023 DEI Transparency Report, detailed its ongoing efforts to promote inclusion and belonging, reflecting its commitment to creating a diverse and equitable workplace environment.
Related Article: 3 Ways Diversity Improves the Customer Experience
Impact of DEI on Customer Experience
DEI initiatives significantly enhance customer experiences by bringing diverse perspectives that lead to a deeper understanding of various customer demographics. Diverse teams are better equipped to mirror the society they serve, offering insights that might otherwise be overlooked and building innovations that appeal to a broader audience.
Microsoft has reported that their DEI efforts have not only improved product innovation but have also led to more inclusive marketing strategies that resonate with a wider customer base. Their approach to inclusivity in product design and functionality, such as accessibility features in software and hardware, has been crucial in meeting the diverse needs of global consumers.
Nike is another example where DEI initiatives have had a visible impact. By focusing on diverse designs and inclusive advertising, Nike has successfully engaged with a global market, enhancing customer loyalty and expanding its customer base. Its initiatives in representing different cultures and body types in campaigns have been widely recognized and appreciated by customers, leading to increased customer engagement and satisfaction.
Financial institutions like Bank of America have incorporated DEI into their core business strategies, which has led to the development of services that cater to underrepresented groups, such as tailored financial programs for minorities. This not only helps in addressing the specific needs of diverse groups but also enhances customer satisfaction by making financial services more accessible and equitable.
These examples underline how businesses, across various sectors, have successfully leveraged DEI to not only improve their internal culture but also significantly enhance and improve the customer experience. By understanding and reflecting the diverse needs and preferences of their customer base, businesses can build stronger, more loyal relationships with consumers.
Challenges in Implementing DEI
Integrating DEI into corporate culture presents several challenges, often rooted in deep-seated organizational habits and societal norms. One common obstacle is resistance to change, which can manifest both overtly and subtly among employees. This resistance may stem from a lack of understanding of DEI’s benefits or fear that changes may upset the existing workplace dynamic. Additionally, superficial or tokenistic DEI efforts can lead to skepticism about the sincerity and effectiveness of initiatives, making it harder to achieve genuine cultural transformation.
“The implementation of DEI practices may encounter some problems,” said Lieberman. “Resistance to change, unconscious biases, and reluctance to embrace inclusivity can be challenging. Additionally, the process of incorporating DEI initiatives requires allocation of time and personnel, as well as tracking and measurement of their impact and ROI.” Lieberman suggested that to navigate these obstacles effectively, businesses must make strategic investments in resources and provide extensive training to their workforce, to adopt DEI practices for the benefit of both employees and the organization.
Hannah Gomez, senior editor at editing and publishing company Kevin Anderson & Associates, told CMSWire that marginalized people are very good at talking to each other about whom they can trust and whom they can’t, whether it’s where to shop, people to interact with, or brands to use, reenforcing the idea that DEI significantly enhances brand perception.
“Seeing a brand interacting with another brand on social media and showing that they understand inside jokes, hybrid languages, subculture-specific pop culture, and so on is my number one way of determining whether it’s a brand that really does engage in allyship or whether it’s all just generic, performative stuff like saying Happy [X] Heritage Month on the 1st of the month and otherwise going about business as usual,” explained Gomez.
DEI must be authentic, deeply ingrained, and consistently demonstrated. As Gomez reflected, you can’t fake a commitment to inclusion — it’s easy to appear committed to diversity with a one-time donation or a seasonal greeting, but true engagement in inclusive principles is demonstrated through actions — using insider language, participating in culturally specific actions or accurately acknowledging diverse traditions. “Misidentifying the origins of trends or concepts, whether in fashion, music, food, or linguistics, are another way that brands very easily reveal that they neither know nor care about diversity, equity, or inclusion — it’s very telling when someone marvels at some ‘new’ thing that is in fact not new at all, just Columbused. The only way I can think of to prevent Columbusing is knowledge, which comes from ingesting diverse media from diverse producers.”
To overcome these challenges, businesses need to implement comprehensive and strategic DEI plans that are communicated transparently and inclusively. Leadership commitment is crucial; executives and managers must not only endorse DEI initiatives but actively participate in them, setting a visible example for the entire organization. Education plays a pivotal role as well; ongoing training and workshops that address unconscious biases, cultural competencies, and the importance of an inclusive environment can help shift attitudes and behaviors.
Inclusivity should be part of the core foundation of a business. Things as simple as filling out a form on an app should be an introduction to brand culture, and it often is, whether it is a positive or negative experience. Jen O’Ryan, author, strategist and consultant specializing in inclusion, diversity, and representation at consulting service Double Tall Consulting, told CMSWire that most organizations don’t notice there’s a problem, with leaders thinking their product/environment is welcoming, or at least OK enough to get by.
“If you create a registration app that collects gender, and the options are ‘male’, ‘female’, or ‘other’, that’s a problem…and a flaw/defect in the design,” said O’Ryan. The company may say they are inclusive, yet the transgender or non-binary customer is left feeling like they are simply not included, or worse, purposely left out. “I can’t tell you the number of times I’ve encountered bias and absences in something as basic as reserving a hotel room,” said O’Ryan. “Patterns created by words and images only compound the problem.”
In addition, measuring progress and holding the organization accountable are essential for sustaining long-term DEI efforts. This might include setting clear, actionable goals and regularly reviewing the progress toward these targets. Feedback mechanisms that allow customers to voice their concerns and suggestions can also provide valuable insights into the effectiveness of the DEI strategies and highlight areas needing improvement. By addressing these challenges with clear strategies and committed leadership, businesses can embed DEI deeply into their corporate culture, leading to a more inclusive, innovative and productive workplace.
Strategies for Effective DEI Implementation
Implementing DEI effectively requires a holistic approach that integrates these principles into all facets of a business. For embedding DEI in business operations and customer service, one best practice is to start with comprehensive training programs that educate all employees on the value of diversity and the behaviors expected to support it. These programs should not be one-off events but part of an ongoing educational effort that keeps pace with societal changes and deepens understanding over time.
Dani Durante, executive director of Global Inclusion & Impact at CSG, a customer experience, billing, and payments solutions provider, emphasized to CMSWire the importance of business leaders starting their DEI initiatives by redefining what DEI means to their organization. She highlighted the necessity of recognizing that different groups face distinct challenges, which should inform decision-making at all levels of the organization. “This is the kind of thinking that will help modern leaders ensure that diversity, equity, and inclusion are woven into the fabric of everyday operations, rather than treated as separate initiatives,” said Durante.
Incorporating DEI into recruitment and retention policies is also critical. This means not only striving to attract a diverse workforce but also creating inclusive systems that support the retention and advancement of all employees. For customer service, adapting communication and problem-solving approaches to be culturally aware can significantly enhance interactions with a diverse customer base.
For product development and marketing, DEI can drive innovation by opening the floor to diverse perspectives that might not otherwise be considered. Teams that include individuals from a variety of backgrounds can leverage their unique insights to create products and marketing strategies that appeal to a broader audience. This could involve designing products that meet the needs of underserved populations or developing marketing campaigns that genuinely resonate with diverse groups, thereby expanding market reach and enhancing brand loyalty.
Regularly reviewing DEI initiatives for their impact on both employees and customers, and adjusting strategies accordingly, ensures that these efforts remain relevant and effective. Using data to monitor progress and identify areas for improvement is crucial for sustaining momentum and making informed decisions that drive continuous improvement in DEI efforts.
Final Thoughts
Embracing DEI is not just an ethical obligation for businesses — it’s a strategic imperative for long-term success. By integrating DEI into their core operations, businesses can leverage diverse perspectives that spur innovation and enhance cultural understanding, enabling them to forge deeper connections with a broad customer base. This approach not only drives customer satisfaction and loyalty but also positions businesses as attractive places to work, attracting top talent and fostering a committed, engaged workforce.
