Why Diversity is Good for Tech Startups Aiming for Global, and How Buffer Nailed It

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Diversity: not just a buzzword

Diversity isn’t just a buzzword. Having a mix of people can make a team more resilient, more adaptable, and better at problem solving.

We all get stuck when we’re making decisions. When we’re surrounded by people like us, there’s a tendency for everyone to get hung up on the same things, or share the same weaknesses and blindspots. A more diverse group is better able to approach a range of problems. In other words, they’re better at getting unstuck.

What is diversity, anyway?

There are two ways to think about diversity—in terms of people, and in terms of backgrounds.

When we talk about having a diversity of people, we refer to all sorts of things, including gender, ethnicity, sexuality, and age. In this case, we’re talking about basic markers of identity.

When we’re talking about a diversity of backgrounds, we’re talking about the whole range of human experiences and personality—people with a variety of tastes, skills, styles, personal histories, and ways of thinking. Two people can look quite different, but think in the same way.

Diversity can bring profit, backed by data.

The data is clear: diverse companies do better. According to a major report from McKinsey, U.S. public companies with more diverse executive boards have a 95% higher return on equity than those whose boards are homogeneous.

The advantage isn’t industry-specific. Large and small companies alike benefit from having a diversity of people—and therefore a diversity of perspectives—in the boardroom. After all, a mix of opinions is how you develop innovative ideas and push the status quo.

Want to go global? Be inclusive!

In a globalizing world, the most successful companies are those that are able to form connections around the world. If you have a startup that wants to conquer the globe, you’ll need a workforce that reflects and embraces this kind of geographic, multicultural scope.

In that kind of work, a diverse team will give you the range of backgrounds, personalities, and simple cultural know-how that’s needed to generate global strategies. Diverse teams can access niches that, working alone, you’d never even realize exist. And when you’re open to hiring people from all sorts of backgrounds, you can focus on what really matters—talent, which comes from all places. The bigger the pool, the better.

It’s not just that diverse workforces have more ideas. When working with a people from a mixture of cultures and backgrounds, individuals tend to change their ways of thinking. In one study, researchers put 200 participants in 29 mock juries. They found that panels that were ethnically mixed—in this case, with both black and white participants—performed better than all-white groups on a number of metrics.

“Such diverse juries deliberated longer, raised more facts about the case, and conducted broader and more wide-ranging deliberations,” said Samuel Sommers, a Tufts University psychologist who led the study. “They also made fewer factual errors in discussing evidence and when errors did occur, those errors were more likely to be corrected during the discussion.”

Homogenous groups, it seems, tend to be overconfident and less self-critical, which are dangerous traits for a team trying to negotiate a difficult set of challenges. Homogeneity can stifle the exchange of ideas and limit the scope of discussion.

If you treat diversity as a novelty, or as a symbolic gesture, your effort is less likely to succeed. Only by treating it as a serious priority, with which to build a more effective team, will you be able to create truly diverse team.

How Buffer created an inclusive culture

Ideally, diversity is there from the beginning. Once a homogeneous culture is in place, it can be hard to dislodge. After all, change is increasingly difficult as any organization grows.

Consider Buffer, a social media scheduling app. Buffer is a great example of a company that has made having a diverse team—both in terms of people and backgrounds—a priority from the start, with benefits to the company’s culture, and also its bottom line.

Buffer determined its core values in the first months of the company. At the time, they only had seven employees. But they decided, as they grew, they wanted a transparent corporate culture, and a diverse team. They built an inclusive culture through a few key tactics.

Start from the top

For Buffer, a big part of building diversity was about awareness, and a focus on management. Like many companies, Buffer found that one result of hiring diverse managers was getting a diverse staff.

Pull out the diversity data

Data has also been central to Buffer’s efforts to build a diverse team. The company, which now has 34 employees, has built a diversity dashboard that lets them map the backgrounds and experiences of their applicants, and to adjust hiring if they need to be more inclusive. Above all, data can be a way for more conscious growth—and to think about diversity that encompasses many different kinds of people.

The goal is to stay in line with the company’s core values. It’s also to have a team that’s representative of the wide audience that Buffer is trying to reach.

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Revise the job description

Certain job descriptions can turn off prospective applicants—often in ways that people don’t realize. For example, the term “developer” is more appealing to female applicants than “hacker,” which tends to be a word with less inclusive connotations.

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One recent study found that certain words could lead job descriptions to act as gendered signals. Job descriptions for male-dominated fields tended to include more words having to do with individual action—words like active, ambitious, competitive, confident, independent, and leader. Words having to do with teams and relationships—like committed, connected, interpersonal, supportive, and trust—tended to signal jobs in fields with more women.

These findings suggest that the basic wording of a job description can alert female applicants to the possibility that they’ll be in a significant minority or feel out a place. A few minor tweaks to language can help you draw a bigger applicants pool.

Help individuals embody inclusive values

At Buffer, a key part of building a diverse team has been helping employees build inclusive values. They do so with a basic seven-step rubric that includes everything from asking employees to use more inclusive language, to empowering mentors for people from underrepresented groups, to using social media to amplify new voices.

Values aren’t enough—policies matter too. In particular, Buffer has put in place a family leave policy that includes self-managed family leave, more opportunities to work remotely, and perks for families. These kinds of measures can be especially important in making the workplace more welcoming for women.

Focus on core values

By making diversity a core value, Buffer has been able to keep itself inclusive as it grows. As Buffer has found, the more diverse the people at the table, the more perspectives you’ll get in the conversation—and the stronger the discussion will be. From discussion comes innovation. And that’s what every startup needs.

Wrapping up

Increasingly, startups need to be adaptable and global in their outlooks. That kind of culture comes from drawing all sorts of people into a group. Overcoming homogeneous institutional cultures can be tricky, but with strong values, an open mind, and close attention to language and policy, companies can build the teams they need to thrive in the 21st century.

Have you had experiences creating more diverse workplaces? Any tips to share? Let us know in the comments!


France Is M-Commerce’s Next Frontier And Here’s How You Can Crack It

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France – the next m-commerce frontier

The world is migrating toward smartphones. As it does so, more and more retailers are trying to figure out how to drive mobile commerce. Those considerations don’t just apply in English-speaking countries, of course. Some of the most promising markets for m-commerce are countries with huge retail sectors and underutilized m-commerce channels.

Which brings us to France. In this post, we’ll introduce you to the promising m-commerce future of one of the world’s most vibrant retail markets.

Some useful demographics

Typical smartphone user in France: Middle-aged (35-49) men in urban centers, with high-paying jobs, form the core of the market.

French smartphone users tend to use apps more than websites on their phone. Relatively speaking, they use their phones at home a lot, because 4G coverage in France is patchy, and because public wi-fi access isn’t great.

Android has about 60% of the market share in France, and it’s growing. People are spending more and more time on apps, too.

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France’s retail market offers big opportunities

Compared to its neighbors in Europe and the United States, France has been slow to adopt smartphones. But as a chunk of the country’s enormous, €500 billion retail market moves online, France has the potential to become a major online consumer. Downloads of the top 25 apps from large retailers in France have grown almost 50% year-over-year. And iPad services remain an under-tapped market.

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The slow shift to m-commerce is having an effect, especially in grocery sales. Sales at physical supermarkets in France dropped in the third quarter of last year, while distance sales are on the rise. In 2013, Kantar Retail valued the French e-grocery sector at $6.6 billion, which would make it 4% of overall grocery sales. That proportion is second in Europe only to the U.K., and the French online grocery retail market is well ahead of Germany, even though Germany has a much larger overall e-commerce market.

The expansion of the click-and-collect model (customers buy goods online, and then collect them from a physical location) is indicative of the evolving demand for immediacy in French retail.

You should bet on m-commerce in France

In 2013, only 8.0% of online retail orders in Europe were completed on a mobile device. In the United States, that number was 13.8%. The lesson is pretty clear: there’s room for growth in m-commerce in Europe.

That’s especially true in France: the country has a large retail market, and a (growing) majority of consumers already report using their smartphones to compare prices and research products.

At the same time, large retailers’ apps in France get consistently low reviews. Shoppers complain of bugs, broken code scanners, annoying ads, and privacy intrusions.

A growing market, plus weak competition, creates opportunities. Retailers in France have a chance to upgrade their apps and, in the process, win a larger share of the accelerating m-commerce market.

The rise of French m-commerce

The demographics of e-commerce and m-commerce shoppers tend to reflect those of smartphone users in general, with one key exception: online buyers skew a little younger.

That’s one reason why m-commerce is such a promising area, looking toward the future. In 2016, analysts forecast that m-commerce revenue will grow to $15 billion, a 40% jump over 2015. And while small screens pose an obstacle, a full 21% of French people have already purchased something on a smartphone. Many prefer to make the purchase through an app.

As it stands, the overall e-commerce market in France is somewhat unusual. The most popular e-commerce platform in the country, Prestashop, has a small global marketshare. But it’s a French company, and does very well there.

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Use of e-commerce solutions in the world, BuiltWith study 8th of January 2014

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Use of e-commerce solutions in France, BuiltWith study, 8th of January 2014

The second and third ranking vendors, Magento and Custom Cart, are both American companies. For m-commerce specifically, Amazon draws the most traffic in France, with companies like Voyage-SNCF (which sells train tickets), CDiscount (an e-commerce specialist), Fnac (an electronics-focused retail chain) and LaRedoute (a clothing retail) all seeing significant traffic as well.

Make personalized marketing the core of your strategy

So how can developers break into the growing m-commerce market in France?

Two words: personalized marketing.

Personalized marketing is all about figuring out ways to send the right message to the right person at the right place and time.

It all starts with data: you have to analyze customer behavior, both online (who buys what on the web, when?) and offline (what kind of purchases take place in physical stores?).

The goal is to build a mobile platform that appeals to each potential customer as an individual. For the call to action, you want to create your own Onboarding mechanisms, too, instead of just relying on data from Google, Amazon, Apple, or Facebook.

If you do it wrong, clients will just turn to a competitor with a better app or mobile website.

In France, 54% of customers say that they’d buy more if their interfaces were personalized. More than two-thirds of French consumers say that they’re ready to receive a personalized discount voucher on their smartphone while they’re in a store. And 58% are open to advantage programs that offer perks to loyal customers.

But, so far, just 46% of consumers in France say that mobile internet has changed their way of buying—substantially lower than the 55% of consumers, worldwide, who say their shopping patterns have changed since the mobile revolution.

In other words, there’s room for growth.

Let see how Sephora did it right

Sephora, a French beauty products company, has been a pioneer in e-commerce and m-commerce. According to an L2 Prestige study, Sephora had the best mobile competencies of 100 prestigious brands surveyed.

Sephora’s strength comes from a blend of in-store marketing with mobile tools. Throughout its physical stores, the company places calls-to-action for Beauty Insider, its special loyalty program.

The Beauty Insider program is integrated with Sephora’s sophisticated mobile app, which allows users to shop online, browse past purchases, search stores for specific products, buy and send gift cards, receive notifications about special offers, track new trends, post photos, and take beauty tutorials.

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The Sephora app mixes physical store services with m-commerce innovation. It’s also a vehicle for personalization.

The My Beauty Bag feature, for example, lets customers collect their favorite products in one digital space, where they can then track past purchases and go shopping when they need to replenish supplies. It’s a personalized shopping center. Sephora’s Pocket Contour Class, also on the app, uses smartphone cameras to determine the shape of users’ faces. It then creates a personalized tutorial about makeup application, using the actual image of the client’s face as the model.

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Sephora’s Pocket Contour Class is a great example of how personalized apps can help make mobile commerce a unique, benefits-added experience.

And for Sephora, these tactics seem to be working. The company has seen a 150% growth in mobile sales over the past year.

Wrapping up

France has one of the world’s largest retail markets. It also has a big pool of smartphone users who are open to the idea of m-commerce, even if they aren’t doing much mobile shopping yet. Through smart marketing and personalization, mobile retailers have a chance to open up major new frontiers in one of Europe’s largest economies.