A fast track intro to the world of NEOs

Part of the purpose of this blog is to start to introduce you to who and what NEOs are and the impact they are having on our society. This does not come from a “theory of the week”, but rather one of the most vigorous consumer behavior studies ever undertaken. It identifies how different types of people actually behave in terms of their spending and attitudes. It sits above all of the existing social segmentation concepts, based upon age, income, location, education or career choice.

The best way for you to start the process of educating yourself is to go to the source of the research itself, Ross Honeywill’s Social Intelligence Lab: http://www.socialintelligencelab.com/consumer-insights.html

Read this site and you will start to see that there is a world split in two. And it really is split, as the NEO world-view is radically different than that of the mainstream (known as “Traditionals”). NEOs do not process information, shop, work, vote or learn the same way as Traditionals do (most of the time). The gap between the two groups, particularly with the ever-greater importance of the web to change the way we live, is getting bigger every day. For anyone in the business of trying to influence the opinions of others, whether it is for commercial, political or any other purpose, this could be some of the most important information you will ever learn.

I am a NEO and it is often difficult to talk about the differences between the NEO view than the Traditional one without seeming patronizing to the more staid view of Traditionals. This is not my intention but I know I am going to do it so let’s just deal with it shall we. It’s not that Traditionals are some small minority that needs protection; they are the majority of the population! They have dominated our society for decades and still have massive influence.

The rise in influence and commercial importance of the individualistic NEO is increasing every day. Ever more so as the world needs the self confident, independent minded people to help it to recover from one of the biggest economic shocks in our lifetimes. While Traditionals typically retreat from the market, NEOs are currently scoring 20 points higher in measures of consumer confidence. And evidence from previous economic challenges shows that NEOs resume their spending significantly earlier in the economic cycle than their Traditional cousins. If you are hoping to make money anytime soon, you need to understand these people.

Also, you don’t need me to tell you about the Traditional view of the world – you can see it in every part of the media when they are talking about “consumers are doing this or that”. Apparently we all make decision based only on price, brand or prestige – but I don’t and know I know at least 59 million other people in America don’t either. Traditional marketing is dominant in many industries, whether it is the “price is everything” local car dealer, or the ubiquitous and increasingly ineffective “lifestyle” imagery of real estate or travel.

The NEO world is relatively simple to understand, especially if you are a NEO yourself. If you are a Traditional it may well seem like a load of bollocks. That’s fine. Be aware that most NEOs have been convinced you were full of it for the last thirty years to! The important thing to understand is that there are two sides to this discussion, with virtually no middle ground.

I don’t want to become an Evangelist about this and am certainly not trying to change anyone. We are born one way or another, with virtually no chance of moving from one side to another. There is evidence that it is tied to naturally occurring levels of serotonin and certain other hormones. That may or may not be the case, but having spent most of my life feeling like an alien in my own (Traditional) family and my business career trying to learn how to have my head overrule my heart, it is actually quite liberating to know I am not “weird” - just more economically significant!

NEOs are individuals and want to be treated as such. The whole corporatization thing that really took prominence in the 80’s and 90’s was complete anathema to them. There are 59 million NEOs in the USA alone and every single one of them acts as a market of one. This is the first and most important thing to understand. Treat a NEO like they are part of a group or demographic and you’ve lost them.

This requires a pretty significant rewrite of the “rules of the game” for communication specialist, business people and entrepreneurs. To some it will be alien; my guess is that to about a quarter of you, it will seem like coming home!

NEO BLOGGER