The numbers speak for themselves: investing in diversity is not just a moral imperative; it’s vital to business success. And the automotive industry seems to understand its importance.

Over the past several decades, we’ve seen dealer principals hire more women, minorities, individuals with disabilities, and people with different sexual orientations, as well as implement more diverse marketing campaigns. While the progress is commendable, we can all agree there’s more work to be done.

Many of the industry’s previous efforts to improve diversity, equity, and inclusion (DEI) have been built on the foundation that it’s the right thing to do—and that’s unquestioned. But to truly drive DEI forward and make it sustainable, we need to shift our mindset. That means transitioning the conversation from the “who” to the “why.”

Leaving Money on The Table

The reality is underserved communities represent significant untapped revenue potential. Embracing DEI and building relationships with vehicle shoppers who you may not have engaged previously, opens the door to new markets and future business growth opportunities.

According to a recent McKinsey Institute for Black Economic Mobility analysis, Black consumer spending on automotive products will reach $190 billion by 2030. In addition, 35% of Black survey respondents said they are not loyal to a particular auto brand, which suggests that up to $14 billion of Black consumer spending in the automotive sector will be up for grabs.

Moreover, according to the U.S. Census, people of two or more races, Asians, and Hispanics, are projected to be the fastest growing racial or ethnic groups over the next several decades. Thirty-two percent of the population is projected to be a race other than White by 2060.

Establishing relationships with individuals from diverse communities presents an opportunity to build loyalty and brand affinity, especially if they’ve been largely ignored by other dealerships.

Changes Start with Staffing

Change starts from within. DEI hiring initiatives should not just check the box. Our employees are one of our greatest assets, and it’s important that your workforce reflects the diversity of your customers.

Representation is an element of inclusion and can make potential buyers feel like they belong. Every customer is different, and you can’t implement a one-size-fits-all approach. You need to understand the needs and wants of prospective car shoppers.

Keep in mind that people tend to recommend or not recommend services to friends and family based on their own experiences. Often, we trust people who have experienced the same challenges and struggles.

Diversity among your staff brings valuable perspectives, different backgrounds, and ideas that empower your dealership to connect and cater to a wider array of customers. Recognizing the barriers to entry that many people from underserved communities encounter and helping them navigate those challenges better positions your dealership to build lifelong relationships and sell vehicles.

Reaching Underserved and Minority Communities

Beyond your dealership staff, partnering with local organizations and non-profits that represent under-resourced communities provides an opportunity to get to know them on a deeper level and find ways to help them become a vehicle owner.

For example, many individuals from underrepresented communities have limited-to-no credit history. This could be a chance to work with the financial services community to engage underserved vehicle shoppers with financial knowledge and the resources to build positive credit and position themselves financially to buy a vehicle.

DEI Builds Your Customer Base

While diversity, equity and inclusion starts with our heart, if we only acknowledge our moral obligation, that’s where progress stops. DEI empowers you to create and build relationships with customers you haven’t engaged with in the past.

It doesn’t mean replacing your current customers with a new audience, but rather how can you expand your customer base moving forward.

Redefining what DEI means to your dealership can provide you with a competitive advantage in the short- and long-term.