Got Dispensable Income? The GLBTs Do!

Tap into this potentially lucrative marketplace with a little gay-friendly marketing ….

Why should you target the GLBTpopulation? The GLBT (gay, lesbian, bi-sexual and transgender) population is a powerful, emerging market that boasts plenty of dispensable income. With a steady population of 19 million, the GLBT community extends also to non-GLBT family and friends, offering a wide-reaching target.

The GLBT marketplace is different from others because it is both a movement and a market, said Matt Tumminello, president of Target 10, in his presentation, “Queer Eye for the Marketing Guy: Emerging Opportunities within the GLBT Marketplace,” at the Insurance Information Network of California’s Fusion Conference July 8 in Los Angeles. Unlike other minority groups, GLBTs are not born into a particular community, and they are considered a non-ethnic minority, even though they are comprised of many ethnicities.

“Insurance needs for people are the same across demographic lines,” Tumminello told Insurance Journal. Since the need base might be the same, he said, agencies and brokerages can reach out to the GLBT population simply by making your services more welcome to them. “Let them feel comfortable coming to you as a professional for services,” Tumminello said.

“We’re just like everybody else, but do realize that we like to be recognized in the sense that you’re going to take the time to market to us in a manner that we can appreciate and do appreciate,” Tumminello said. He explained that GLBTs recognize and appreciate companies that extend their marketing efforts towards them more than they would a company that does not. “It means a lot to us, because we know that sometimes it’s not done without risk.”

Like other minorities, much of the GLBT population is concentrated in one particular area of a city or town. “Gayborhoods,” as Tumminello referred to them, are the hubs of local gay life. Just as in any community, the GLBT population centers around gay-friendly shopping centers, restaurants, bars, gyms, community and health centers, etc.

As Tumminello explained, there are numerous opportunities for highly targeted marketing campaigns within the GLBT community. Some of these opportunities include print advertising in gay publications; as well as online, television and radio advertisements. Opportunities also exist in outdoor advertising in gayborhoods, promotions with retailers and proprietors in gayborhoods, and seminars and workshops with gay professional organizations.

For example, you could team up with a local GLBT community center to offer a seminar on financial planning that highlights the various products you offer. Another effective method of advertising would be direct mail campaigns using zip code targeting.

As a salesperson, there is a huge reason to consider marketing to the GLBT community–dispensable income. And the GLBT population has a lot of it! Considering that the majority of GLBTs are self-supporting without any dependents, much of their income goes in to maintaining their lifestyle. Tumminello explained that many GLBTs are known to: partake in heavy vacation and business travel; be trend-setters in the areas of fashion, style and design; be concerned with fitness, health and grooming; and are more inclined to shop online and have heavy Internet usage.

Brand-loyal GLBT consumers are very apt to think before they buy, he added.

GLBTs “are willing to pay more for a product or service if it’s perceived as gay friendly or supportive of the gay community,” Tumminello said. “Price is not always a driver. Their decisions will be influenced by who is making an effort to market to them, who supports the gay and lesbian community, and conversely who is against the gay and lesbian community. They are willing to pay more for a service if they know it’s supportive of who they are as a person or a family.”

The do’s and don’ts
There are several things to consider when planning a marketing campaign to this savvy group of consumers. First, Tumminello said, “Don’t be afraid of the market. Open your mind.” He suggested reaching out the GLBT members of your agency or community to gather more information about the GLBT lifestyle.

“If you’re in a metropolitan area, start to participate in community events,” Tumminello said. He suggested attending a pride festival, or better yet, participate in one by making your products and services known alongside other vendors.

He also recommended picking up GLBT magazines and newspapers that can keep you up to date. “If you’re selling professional services, you really want to know about your local market. If you pick that up [your local GLBT newspaper] once a week for a month or so, you’re going to have a pretty good knowledge of what’s happening in your local gay world.”

Tumminello also stressed the importance of making your marketing efforts relevant to the GLBT population. This is crucial to your success–if your campaign is not thoroughly researched beforehand and you launch it anyway, the GLBT population will recognize that you have not done your homework, and the effects could be detrimental. Instead, do your research and get it right the first time. Use gay language, reference the culture, and don’t be afraid to use gay images.

“Definitely get some feedback from people who are gay and lesbian. Have them confirm your hunches or maybe help tailor and edit your programs,” he said. “Don’t let your preconceived notions cloud your judgment.”

For P/C agents, the opportunities are plentiful. Personal lines–auto, homeowners, financial planning … once you’ve established yourself as a gay-friendly agency or brokerage, even more opportunities can follow in commercial lines with gay-friendly businesses and organizations. The rest will come easily.

Editor’s note: This article marks the first in a series of articles based on target marketing to different populations. I welcome your comments about this series at cbeisiegel@insurancejournal.com.