Marketers, like all humans, are not immune to cognitive biases—even when those biases silently reshape strategies and stunt growth. Admittedly, one of the sneakiest culprits is in-group bias—a tendency to favor people we resonate with and unconsciously exclude those we don’t. But here’s the catch when it comes to marketing: your “in-group” is not always your customer base.
If you’re a marketer, a business leader, or a passionate advocate for diversity, I will walk you through why recognizing and addressing in-group bias isn’t just some moral obligation or “woke” idea—it’s necessary if you plan to lead a thriving business.
What is In-Group Bias?
At its core, in-group bias is the inclination to associate more positively with individuals, ideas, or groups that share similarities with us, while unintentionally sidelining those who don’t. It’s why we might gravitate toward people with the same background or preferences and why unfamiliar cultures, perspectives, or consumer behaviors can fly under the radar.
Now think about marketing strategies. Could the way a professional team “intuitively” defines their target audiences and crafts campaigns be subtly shaped by this bias? Spoiler alert— YEP! It happens more often than you’d think.
How Does It Shape Marketing Perceptions?
Marketers often consider themselves experts on their audience. But what happens when that “ideal customer” map looks startlingly like the individuals building it? The result is a tunnel vision that limits opportunities to engage with broader, diverse demographics.
Picture this scenario:
- A bank marketing team launching its new suite of high-yield checking accounts focuses solely on middle-aged white people, assuming their preferences and wealth profiles align with the brand’s financial wellness story.
- They overlook people of color seeking ways to grow their wealth or younger millennials who are in the middle of their career trajectory assuming they have no money to invest in an account.
Why? Because people who fit outside their in-group don’t immediately resonate. They weren’t considered “ideal customers,” even though insights and accessibility data suggest otherwise.
When Bias Gets Expensive
By excluding diverse groups, brands are not only losing revenue—they’re eroding their presence in a world that increasingly values inclusivity. Here’s what’s at stake:
- Lost Growth Opportunities: Entirely new markets go untapped because campaigns fail to speak to them.
- Alienation: Diverse audiences walk away feeling ignored, unvalued, or unseen by brands they might otherwise love.
- Stunted Innovation: Creativity thrives on perspective. Narrow marketing efforts result in campaigns that repeat old tropes, ultimately risking consumer fatigue.
- Compliance and Legal Ramifications: In highly regulated industries like banking, exclusion can cost big money in fines if a financial institution is found to be redlining or failing to reach diverse groups.
But the reverse is also true. Thoughtful strategies that challenge in-group bias can lead to incredible, real-world wins.
Case in Point: Airbnb’s Shift in Perspective
Take Airbnb’s marketing transformation. Recognizing they often leaned heavily on millennial solo travelers, Airbnb reexamined its audience assumptions. With a strategy rooted in inclusion, they targeted broader demographics—multi-generational families, retirees, and even “staycationers” during the pandemic.
The result? Not only did bookings skyrocket, but satisfaction among new target demographics grew exponentially. By stepping outside their comfort zone, Airbnb unlocked untapped demand and expanded its own definition of what community means.
Example from COVID-19’s Impact
During the pandemic, consumer behaviors shifted drastically, catching many brands off guard. Savvy marketers, however, took the opportunity to observe and empathize with this change. For instance, some brands pivoted to center overlooked essential workers or addressed suburban and rural audiences who saw disproportionately fewer localized advertising efforts. These approaches revealed how inclusive practices could foster connection during times of uncertainty.
How to Counteract Bias as a Marketer
Breaking free of in-group bias isn’t easy—but it is absolutely worth the effort. Here are some actionable steps to help you get started:
- Audit Your Assumptions: Regularly analyze whether your campaigns cater only to one demographic. Ask, “Who is this campaign leaving out?”
- Gather Inclusive Data: Use diversified data sets, analytics tools, and customer feedback from a variety of demographics to inform your strategies.
- Build a Diverse Team: A marketing team comprised of individuals from different backgrounds can naturally identify gaps and opportunities you might miss.
- Test and Learn: Launch smaller, inclusive campaigns targeting new segments. Use A/B testing to inform your broader rollout strategies.
- Shift the Narrative: Instead of asking, “Who’s most like me in this audience?” Focus on how you can champion underrepresented communities authentically.
What’s Next for Your Marketing Strategy?
Marketing leaders have the power to break through the walls of in-group bias and redefine what inclusion looks like—one ad, one story, and one campaign at a time. Your brand can pave the way for meaningful change while connecting with audiences you haven’t yet reached.
It starts with reassessing who benefits from your current strategies, and while this takes effort, the rewards—both humanistic and financial—far outweigh the cost.
Feeling inspired to take a closer look at your targeting strategy and make it more inclusive? Share your thoughts below or message me to discuss.
Stay connected—being intentional is the ultimate marketing advantage.