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Part B - Making a change

What can organisations do to become more (diversity) customer centric and thereby mitigate risks and magnify opportunities? It probably depends on where an organisation sits on a maturity scale, i.e. how mature are they already in adopting a customer centric mindsetand practices? Plus how mature are their diversity and inclusion employment practices?

Human resources

A mature organisation ought to see the Chief Marketing Officer and Human Resources Director (and arguably the team responsible for ESG - environment, social and governance - commitments) meeting in the middle of the hallway to share ideas and rapidly integrate diversity practices into customer practices. Not that it’s all one way, the HRD will no doubt learn from the CMO and ESG team as well. A much less mature organisation might need help getting customer diversity onto the radar.

Below we introduce a maturity model and capability framework along with examples to help organisations make the change.

Introducing a model of maturity and capability framework

The inclusion of diverse customers can be broadly segmented into four levels of maturity – from a decision to actively (and unlawfully) discriminate against diverse customers, to ignoring diverse customers unless the subject of a complaint, through to the integration of diversity into a comprehensive customer strategy.

Some questions for consideration

A compelling vision and clear strategy

  • Is the value of customer diversity and inclusion clearly defined and understood by business leaders?
  • Is customer diversity and inclusion a focus of the organisation’s employee diversity and inclusion strategy, and embedded into the organisation’s customer strategy?
  • Are there clear segment based strategies that drive specific investment in meeting the needs of diverse customers?
  • Is diversity and inclusion a core value for the organisation and do employees live by these values?

Good governance

  • Is there a senior level person responsible for customer diversity and inclusion, and are insights shared between the customer and employee diversity and inclusion lead?
  • Does the organisation use insights from Employee Resource Groups in product development to improve customer responsiveness?
  • Are there measures in place to ensure the organisation complies with discrimination and privacy laws?

Capable and accountable leadership

  • Is the board and senior leadership team representative of the organisation’s customer base?
  • Do leaders possess a shared commitment to customer diversity and inclusion and role model inclusive behaviours (e.g. fairness and respect)?
  • Are leaders held accountable for achieving customer diversity and inclusion goals, and are they rewarded for doing so?

Capable employees

  • Does the organisation have a workplace culture that values diversity and inclusion?
  • Are there education and training programs in place to develop knowledge and behaviours relating to customer diversity and inclusion, e.g. empathy training?
  • Is the workforce representative of the organisation’s customer base and are there recruitment and retention strategies for diversity and inclusion?

Meaningful customer insights

  • Does the organisation measure the customers it doesn’t have, to identify potential unmet needs?
  • Is the organisation satisfied that it is hearing the voice of diverse customers? Are customer feedback programs made accessible to diverse customers, in multiple languages and formats?
  • Does the organisation develop diversity and inclusion insights that are actionable, integrated and shared across the organisation?

Adapted product and service design

  • Are diverse customers engaged in product and service design?
  • For existing products in market, are there product suitability processes in place to assess and ensure the inclusion of diverse customer needs?
  • Are environments across all channels designed in a manner that considers diversity and inclusion customer needs?
  • Do the organisation’s human-centred design methodologies consciously embrace the needs of diverse customers?
  • Are product and service disclosure statements and contractual documents delivered in formats that are accessible to diverse customers?

Relevant brand

  • Does the organisation (e.g. leaders) have a reputation for supporting diversity and inclusion?
  • Does the organisation integrate diversity and inclusion into communications and marketing?
  • Does the organisation seek to influence and/or take a stance on equality themes (e.g. marriage equality) in the community?
  • Are there clear diversity and inclusion principles in place in the execution of brand strategy?

Relevant measurement and reporting

  • Have goals been set in relation to customer diversity and inclusion (e.g. X% of diverse customers feel respected in their interactions with the organisations)?
  • How is diversity and inclusion integrated into existing measures like Net Promoter Score?
  • Are processes and systems in place to develop, measure, monitor and report on customer diversity and inclusion impact and outcomes?

Inspiring examples

Apple

In more recent times, Apple has focused on redesigning emoji to better represent its customer base. In 2015, it introduced racially diverse emoji, allowing users to cycle through various shades of white and brown to customize their emoji’s skin colours along with picture options for same-sex couples. In 2016, Apple announced new emoji that show women playing more sports and performing jobs that previously only allowed for male options.

Cricket Australia

In 2011, Cricket Australia established the KFC Big Bash League (BBL), a new domestic Twenty20 cricket tournament. The BBL was established with one goal in mind – to attract and engage new fans (children, families, female audiences) to the sport of cricket and protect the future of the game. Consistent with its aim to attract more female players, a women’s league was also established in 2015, and was so well received that broadcast partners added additional women’s games to the schedule in 2016. By 2016, TV audiences surpassed 1 million viewers per game. Its success is a driving force behind cricket now becoming Australia’s number 1 participation sport, with 24% of players now female.

L’Oréal

In 2016, L'Oréal Paris launched a major campaign, #YoursTruly, to promote its new True Match Foundation range - a set of 23 shades that the brand says matches 98% of skin tones across all ethnicities. According to L’Oréal Paris UK general manager Adrien Koskas said: '…the #YoursTruly campaign is a declaration of equality and diversity for the L’Oréal Paris brand.’

Qantas

Qantas has a family-friendly frequent flyer program that has been described as ‘maternity leave for travellers’. This program allows customers to put their Qantas frequent flyer memberships on hold for a period of up to 18 months when they welcome a new addition to their families and as a result, may not be travelling as often. Members can still continue to earn points and credits as well as get access to an airport lounge if they happen to fly during this period.

QBE

In 2015, QBE pioneered an initiative that combines investment management activities with Environmental, Social and Governance activities in QBE’s sales and marketing of insurance products.

Known as Premiums4Good, this initiative allows targeted customers to direct a proportion of their premium for investment in securities with an additional social or environmental objective.

Examples of these investments include Social Impact Bonds, green bonds and investments into infrastructure projects with environmental benefits. QBE has gone on to invest in Social Impact Bonds globally across high impact areas including improvement in the life outcomes of youth at risk, reducing the risk of heart disease and instances of children in out-of-home care. QBE also invested $30 million in the Future Generation Global Investment Company (FGG) initial public offering on the ASX in 2015. Investment managers selected to manage the FGG portfolio donate their professional services while FGG is committed to transforming youth mental health in Australia through donating 1% of net tangible assets annually to selected Australian non-profit organisations.

Reserve Bank Australia

The Reserve Bank of Australia has started to produce ‘tactile banknotes’ to help those who are visually impaired identify different dollar denominations. Although the Reserve Bank will continue to display existing features to assist the visually impaired such as bright colours and different sizes, it is one of few countries that has included tactile identification.

SBS

In 2016, SBS launched the 'Diversity Works Challenge' which is designed to encourage the Australian advertising industry to think with diversity and to reflect the real Australia in their marketing campaigns. SBS will offer $1 million advertising space to the brand or agency with the best campaign that prominently features Australia’s diversity, while also achieving the brand's overall marketing objectives, and will launch in a prime time program on SBS in the second half of 2017.

Tiffany and Co

In 2015, Tiffany featured for the first time, a same-sex couple in their new advertising campaign. The campaign titled ‘Will you?’ features seven pictures of different couples, including two men on a New York step and is intended to honour the idea that love transcends age, race and gender.

Westpac Group

Deaf and hard of hearing customers in key metropolitan areas now have access to financial advice in Auslan (Australian Sign Language), thanks to an industry- first trial. The service enables Westpac and St.George customers and financial planners to connect with interpreters who provide access to the discussion in Auslan, using the Bank’s Connect Now video-conferencing technology. This has opened up conversations with customers and created strong brand advocacy for Westpac Group, as positive communication of the service has been shared broadly in the community with more than 10,000 likes on both the St.George and Westpac Facebook pages.