Promoting diversity can alienate loyal customers 

By Dr Miriam McGowan from Issue 15

Diversity and inclusion have become standard features of modern brand communication. From Pride-themed packaging to campaigns around gender equity or racial justice, many companies now treat social values as central to their public identity. 

But as brands work to align themselves with wider cultural shifts, a difficult question has emerged: could efforts to include some audiences inadvertently push others away? 

This question is especially relevant in today’s polarised climate. While some customers have always viewed certain styles of brand activism as performative rather than progressive, political shifts such as US President Donald Trump’s actions to downgrade or eradicate DEI from corporate identity has made any stance taken by brands a target for political critique. Businesses are being pulled in two directions, under pressure to demonstrate inclusive values while also trying to avoid alienating parts of their customer base.  

This tension was the focus of a recent research project I conducted with Dr Louise Hassan (University of Birmingham) and Professor Edward Shiu (Bangor University). Our work sought to understand why some diversity campaigns resonate with audiences, while others provoke backlash, mistrust, or even boycotts. 

When good intentions miss the mark 

Across ten experimental studies, we consistently found that diversity efforts can backfire when customers/audiences feel they are out of sync with a brand’s existing identity. Customers don’t necessarily object to the message itself, but rather the way it’s delivered, or who it seems to be aimed at. 

When brands launch long-term diversity initiatives that don’t reflect their existing audience or established values, those campaigns can be perceived as disingenuous or opportunistic. 

This perceived mismatch often leads customers to feel excluded or overlooked. For example, if a heritage lifestyle brand with a loyal, traditionally-minded audience suddenly pivots to a bold campaign without context or continuity, the change may feel jarring. Even customers who support the social issue in principle may object to the campaign. 

This reaction isn’t just about the message, but what it signals about identity. Customers often view the brands they engage with as forming part of their own self-image. When those brands appear to shift direction abruptly, it can feel like a personal disconnect, almost a betrayal. Continuing to use the brand would threaten customers’ identity.  

How brands can avoid the pitfalls 

So how can companies engage meaningfully in diversity work without risking the loyalty of their core customers? 

One solution is structural. Creating sub-brands or standalone product lines allows organisations to support specific communities without disrupting the identity of the parent brand. A cosmetics company, for example, might launch a gender-inclusive beauty range under a separate label. This approach can expand reach without undermining established customer relationships.      

Another useful tactic is customisation. When customers can customise the product to better reflect their own identity and preferences, they tend to feel represented without others feeling excluded. Crucially, this doesn’t require bold public statements; it quietly signals that everyone is welcome. 

A third strategy is consistency. Brands that demonstrate long-term commitment to a cause, rather than short bursts of activity around awareness days, are perceived as more authentic. This might mean forming partnerships with relevant organisations, setting clear goals, and tracking progress over time. 

It’s also important to consider the nature of the customer relationship. In sectors where purchases are primarily functional or price-driven, such as utilities, insurance or fast fashion, heavy social positioning may feel misplaced, and customers respond more negatively to long-term initiatives. In contrast, brands in lifestyle, beauty or fashion often trade on emotion and identity, which makes them better suited to long-term values-based marketing. 

Real inclusion requires real alignment 

None of this suggests brands should step away from social responsibility. In fact, our research reinforces the idea that companies can and should play a role in promoting inclusion. 

But to do it well requires alignment. Not every brand needs to weigh in on every issue. The most effective campaigns are those that match a brand’s history, voice and audience. Diversity messaging should grow from within the brand, rather than being tacked on for visibility, or simply enacted as a way to be seen favourably or enhance profitability. Authenticity is key, as is understanding the existing customer base. 

At a time when consumer trust is fragile, the way companies engage with inclusion matters more than ever. Those who get it right, thoughtfully, sincerely, and with a clear sense of purpose, can deepen loyalty and build broader communities. Those who get it wrong risk pushing people away, not because of what they stand for, but because of how they choose to say it.