I’m happy to report to you that the buying power of America’s LGBT adult population was approximately $830 billion in 2013. That was up from the $790 billion in 2012. This data comes from Witeck Communications who are often the premiere source of LGBT market research. You can read there full press release here.
You’ll commonly hear LGBT buying power also referred to as the ‘pink dollar’ or ‘gay dollar.’ But you may be scratching your head and saying is $830 billion really a lot compared to the buying power of other groups?
Let me put it in perspective for you. Here are what the 2012 buying power figures for the top four niche segments, including LGBT, were:
- Hispanic American: $1 trillion
- African American: $1,038 billion
- LGBT American: $790 billion
- Asian American: $718 billion
And in 2013, LGBT was at $830 billion. The above data allows you to really see how the LGBT market rates compared to other market opportunities. The LGBT community is a significant contributor to the U.S. economy. In the Witeck Communications press release Justin Nelson, president of the National Gay & Lesbian Chamber of Commerce is quoted saying –
“LGBT buying power is diverse in ethnicity and socioeconomic status, and we are an incredibly loyal constituency.” He goes on to say, “At NGLCC, we have more than 140 corporate partners that recognize not only the influence of the LGBT dollar, but the economics of inclusivity.”
In 2007 when I first began in this field the buying power was at $690 billion. In the years since the numbers just continue to go up. I brought this to your attention because there is a huge market out there and there is room for you to tap into it. As always the caveat to that is that you need to be doing your LGBT outreach in an authentic and transparent way. I wrote a 3 part blog post series on ‘What’s your why and why it matters’ as well as a training course by the same name. It is important to be articulating your message clearly and effectively if you want to reach this loyal group of consumers.
Brand loyalty within the LGBT community is especially high. Here are some statistics. (These statistics were taken from Community Marketing Inc. & Harris Interactive.)
- 55% of LGBT consumers will choose to do business with companies that are committed to the diversity/equal treatment of the LGBT community.
- 70% of LGBT adults stated they would pay a premium for a product from a company that supports the LGBT community.
- 78% of LGBT adults and their friends, family and relatives would switch to brands that are known to be LGBT-friendly.
So how will you increase your LGBT market share? Your first step is to get in touch with me and we can work on that plan together. You could even take a baby step and join me on my next webinar to learn more about what steps you can take to get yourself headed in the right direction. I hope to see you there!