A little more on Pricing

One concept that can help understand different types of consumers is Substitutability. Appreciating how NEO and Traditionals make buying decisions is in large part down to this simple concept, of how one thing can be replaced by another.

Traditionals tend to have high product substitutability. This means that they will readily move from one product to another, usually based upon price. This makes them highly susceptible to offer-based marketing, primarily around price, that dominates most campaigns and sales promotions. Traditionals will move from Budweiser to Coors, Ford to Hyundai, and even one home to another, if they can get a better deal. They tend to focus less on the product than the offer. Marketing to this group is not really complex; just have a better offer than the next guy and focus upon price, incentives, features, etc. It's not rocket science but your margins will be squeezed by everyone.

NEOs however often have much lower product substitutability - if they have found a something that really connects with them. For a NEO, price is just the cost of falling in love. Once they have found something that is right for them they will still want to pay the best price they can get for it, but they are very unlikely to be tempted away by a lower price for something else.

They tend to research their options in greater detail, usually on the web, as it gives them control long before they engage with the seller. They will usually look for something that is exactly right for them and not just like everything else. Design, personality and the environmental impact are just some of the things they typically consider.

This is why it is so vital to not only have a product or service that is authentic, but also to tell the whole story in a way that people can relate to. Unless you give the NEO the information they are looking for then they are never going to be able to completely understand your product. You are denying them that opportunity to fall in love. Similarly, leading your campaign with price will have the NEO feeling "Why would I care what the offer is, I haven't even decided it's for me yet!"

Marketing to NEOs is a lot about letting go. Not just of tired old marketing practices, but also control. The marketer and sales person need to understand that when working with someone from the “59 million markets of one”, it is not what you think is interesting or important that matters. It is the NEO prospect's that count and they are as different from one another as you could imagine.

Tell the truth, honestly and openly. You will be for more attractive for doing so.