What a pot of pink paint has to do with communications

Ever heard of “pink money”? It’s a term used to describe the purchasing power of gay, lesbian, bisexual and transgender adults. An estimated 90 billion pink euros are spent in Germany every year. This impressive figure suggests that this is a group with immense clout. Apply the same maths to Switzerland and you quickly realise that this is a clearly identifiable audience with massive potential.

In terms of communications planning, this means easily achievable coverage via a relatively small number of channels − which translates into rich returns on a modest investment. After all, even here in the western world, the options for addressing the LGBT community directly are pretty limited. With only a small number of pink media titles, various websites and social media channels, and a few events and festivals giving direct access to this target group, it’s a very short list indeed.

Credibility the key

So it’s easy? It would be, actually – if it weren’t for the frequent criticism of “pinkwashing”. You can’t expect the entire LGBT community to come running simply because you’ve painted your logo in rainbow colours. Unfortunately that’s not how it works. Pinkwashing is definitely the wrong way to gain the approval of LGBT people. Despite the free spending, it’s crucial to realise how important critical assessment of products and services is within the community. So if you’re after pink money, you have to do something authentic and give some serious thought to the community, its needs and expectations. Honest engagement is the right approach. With good taste generally upheld throughout the community, standards are high. So it’s worth devising a special concept for your pink audience and working up the form and content of your communications accordingly. If you don’t take the time to do this, you’re in danger of messing it up for good: the community doesn’t easily forget failed attempts.

Other people also like pink

The good news is that this effort will pay off in multiple ways. Surveys by Google have shown that companies that actively work for the interests of LGBT people and issues such as equality are significantly more popular than their passive competitors. The impact on purchasing decisions, particularly among younger customers, is remarkable: over 45% of consumers under 34 years old say they’re more likely to do repeat business with an LGBT-friendly company. More than 54% say they’d choose an equality-focused brand over a competitor. So why not get this audience on board as well?

You have to know how

If you take sufficient time and seek outside expertise if needed, your efforts will be amply rewarded. LGBT customers don’t just have plenty of money to spend; they’re also very loyal. And the same seems to apply to people who care about LGBT rights. Add to that you have the fact that an extremely homogeneous choice of channels makes it easy to communicate intensively with the community. If your strategy combines targeted media work with an intelligently structured media mix and impactful actions, virtually nothing can go wrong. You don’t even need a pot of pink paint: desire, a sense of pleasure and a good measure of authentic engagement will suffice.