What: Pride Month is an important message sent to customers, who reward retailers’ commitments by increased loyalty

Why it is important:  Beware of rainbow washing, as the backslash can be hitting hard

During Pride Month (June) all retailers, stores and companies are using the rainbow-coloured flag to signal their commitment to the LGBTQ cause (for El Palacio de Hierro, which did it for the first time in 2021, this translated into higher sales for customers). However, customers are expecting more than passive support, and more than during just a month.

Given their buying power (USD 4 trillion in the world and 1 in the US), retailers should listen to their messages: 66% of LGBTQ customers and 30% of non-LGBTQ customers say their decision to shop is impacted by brand or retailer donations.

Alix Partner advises of the following steps to make sure the approach is taken in the right direction:

• LGBTQ marketing should be seamless in the general strategy, with true authenticity. This implies using actual individuals, instead of actors, in marketing campaigns,
• Run focus groups to understand the customer, to make sure products and usages are fully understood,
• Aim at the long term: once in the year celebration does not drive sustainable impact. Also, having openly LGBTQ employees in senior roles is key to sustain the strategy.

Pride Month Alix Partners