The Actual Cost of Ditching DEI

If you’re incredulous about there being a cost to ditching DEI (Diversity, Equity, and Inclusion initiatives), it may be because you’re not part of the age group that values DEI. There’s now hard data showing that there are groups that withhold money if DEI is abandoned.

Who are they?

It’s mostly younger consumers: Gen Z and Millennials, who value DEI and will use the power of their wallets to send signals to organizations about the importance of these values. Here’s a picture of what that data looks like:

The overall cost, when all age groups are taken into account, is 19%. Yes, that means a loss of almost one-fifth of sales of products – based on self-reported reasons for the change in purchase.

Looking at the total is deceptive, however, because most of that drop is created by the changing behavior of younger buyers. As you see in the chart, Gen Z (adults age 18 – 28) are the ones driving the majority of this, with 40% saying they stopped using or purchasing from a brand because of a contradicted or reversal in DEI efforts.

Additional information from this eMarketer article about economic boycotts and what DEI means for a brand:

• Over half (53%) of Gen Z, and 36% of the general population, have, are, or will participate in an economic boycott, according to a March survey fielded by The Harris Poll on behalf of The Guardian.
• 40% of CMOs worldwide think DEI is an important part of what their brand stands for, according to a June 2024 NielsenIQ and GfK survey.

I encourage you to click on the link below to see the data for yourselves. It’s powerful information to have, as a brand, knowing the importance of DEI initiatives to your target market.

I’m a data hound and, for me, these numbers reveal that the concept of DEI – inclusivity vs. exclusion – is a force. It’s relevant NOW, at the present time, no matter what your personal or political leanings. And, because it is so important to younger workers, it will continue to be relevant in the future. As a business owner, leader, or manager, you ignore it (or defy it) at your own peril.

Thoughts or feedback?

(Link to the data is here: https://www.emarketer.com/content/young-consumers-abandon-brands-that-pull-back-on-dei?utm_source=Newsletter&utm_medium=Email&utm_campaign=eDaily+05.13.25&utm_id=edaily+5.13.2025&utm_content=eDaily+05.13.25&jid=195493&sid=20320450)