Buying Power
According to Witeck-Combs Communications, Inc. and Marketresearch.com, the 2011 buying power of U.S. gays and lesbians is expected to exceed $835 Billion. Headlines later claimed “Gay Buying Power to hit $2 Trillion by 2012.”
Loyalty
Gay consumers can be very loyal to specific brands, wishing to support companies that support the gay community and also provide equal rights for GLBT workers. For example, American Airlines saw its earnings from GLBT people rise from $20 million in 1994 to $193.5 million in 1999, after formation of a team devoted to gay and lesbian marketing.
According to an article by James Hipps, GLBT Americans are more likely to seek out companies who advertise to them and are willing to pay higher prices for premium products and services.
The GLBT Consumer
The median household income compared from same-sex couples to opposite-sex couples is significantly higher. Studies show that GLBT Americans are twice as likely to have graduated from college, twice as likely to have an individual income over $60,000 and twice as likely to have a household income of $250,000 or more.
Statistic show that Twenty-six percent of gay men claim to be early adopters and are the first to know about new products and services, while eighteen percent of lesbian women claim the same thing. Additionally, sixty percent of GLBT individuals also say that people often ask for their advice when it comes to products or services, versus only 34% of the general population.
Key Points to Remember
1. GLBT buying power is growing despite a down economy.
2. GLBT consumers are more optimistic about the economy and willing to spend during the economic downturn.
3. The GLBT population is growing steadily.
4. GLBT consumers are much more likely to buy from companies that market directly to them.