Global auto sales have spiraled downward since last September’s economic reckoning. This is not surprising when you consider that, according to Henry Blodget, in 2007 30% of new car sales in California alone were financed from equity in people’s homes. That’s a pretty troubling statistic for those expecting a rebound in across the board consumer spending any time soon!
However, as ever the apparent “reality” hides stories within it of companies that are able to find buyers who will pay fair prices and allow them to continue to grow a profitable business. A great example is MINI, who expanded its market share in 2008 and is now expanding dealerships; all while thousands of those of their competitors are being closed down.
How can this be? Nobody is buying anything, right?
If you understand the NEO typology this is not only explainable but also highly predictable. Our consumer research shows us that over 60% of MINI owners are NEOs, which is amazing when you consider that they represent only 24% of the population. The majority of the remainder are Evolvers. This is not a Traditional car at all. It is expensive and small – everything that the price and perceived value conscious Traditional (over 50% of the population) hate. They like their cars big and cheap. Unfortunately they aren’t buying many of them now and are unlikely to do so for some time, which will lead to a lot of unsold Chrysler 300s.
MINI has built its success on the driving experience (they are tremendous fun to drive), design (beautiful interpretations of the original Alec Issigonis design) and being a little bit unusual (Union Jack roofs in North America). Both the content and the style of the marketing program to date, with the well-designed urban sales dealerships, directly appeal to the NEO car buyer looking for something different. The ability to personalize the vehicle in a myriad of ways was also a really smart move.
There is a warning though for MINI that should be heeded by anyone hoping to sell to high margin buyers in any industry, including real estate:
Unfortunately the MINI “marketing experts” seem to have decided that pricing is what is necessary to move cars right now. Look at their website today and they lead with a pricing offer. This is a mistake. The website is the first place that the highly research driven NEO will look when exploring their options. It is vital to get the syntax of the offering right upfront, as you can be dismissed as a potential fit with just one click of the mouse.
Do not lead with price unless you have already firmly established why your NEO/Evolver prospect should care. The website is a research tool not a direct sales tool. It should enable the prospects to sell themselves by falling in love with your product so that nothing else becomes an option. Price is then just the cost of that falling in love. By all means have a compelling offer to get someone to buy now, but it needs to be handled in the right order.
Most marketers treat the prospect like a hooker, where price is all that really matters and is negotiated right upfront. This is fine if you are selling to Traditionals, but MINI does not appeal to those consumers, whatever the economy. If you want someone to fall in love with you, then you are going to have to take a little time to show him or her why you are special and the only one for them. Before you close the deal!
There will always be cars that are cheaper than the MINI, (such as the Traditionally marketed Suzuki SX4) just as their will always be cheaper than you in your business. MINI needs to take their marketing “guy/girl” and lock him/her in a closet before they do too much damage. People buy a MINI because they are in love with it, then they want the best price for it. In that order!
Get this wrong and you cease to be able to make your case to be valued differently than everyone else in the market.
After all, who ever ended up marrying the hooker!
NEOBLOGGER
Tuesday, June 23, 2009
Thursday, June 18, 2009
So who are Evolvers then?
As mentioned before, the research behind the NEO typology identifies a world split in two. On one side we have the price centric Traditionals and on the other, the more individualistic, discovery orientated NEOs and Evolvers. At this point I normally go on a diatribe about how NEOs are this and that and conclude that if you are remotely interested in having a high margin business that you need to understand and target NEOs. However, as has been pointed out, there is never really much discussion about Evolvers.
This is true. So far the objective of this blog has been to contrast the concept of the Traditional, which most clearly understand, with the NEO as identified by Ross Honeywill’s analysis of the actual spending habits of over 800,000 consumers. A good question is then; how do Evolvers, who represent nearly a quarter of the population, fit into this?
The answer is partially in the name. Evolvers is actually short for “Evolving NEOs”, which implies they have all of the same characteristics as NEOs, just with less spending power. This is especially the case if your purchase price is relatively low.
An example is Larkburger, the outstanding Colorado hamburger company that makes delicious sandwiches, truffle and Parmesan fries, as well as the $5 Shake that are a huge hit with the mini-Neobloggers. The stores are as environmentally friendly as you can imagine and absolutely everything is recycled or compostable. Of course prices are significantly higher than the mainstream burger chains, but those who care about quality over price are clearly happy to pay the difference.
In this instance the difference between NEOs and Evolvers is essentially meaningless. Even though the price of the product is two to three times that of a mainstream alternative, in absolute terms it is only a few bucks. However as we rise up the price scale the distinction between the two groups becomes more vital.
Although Evolvers have many of the same instincts as NEOs, they are significantly more constrained by their wealth and income. If they had more money they would be NEOs in a heartbeat, they just can’t always make the jump. This does not mean however that they are not great potential customers if you understand them. No company does this better than Mazda. In fact the Mazda 3 is almost the official car of Evolvers! Allied with the Zoom-Zoom identity you get a car with great design, sporty characteristics and plenty of individuality at a great price. Interestingly though, they are consistently able to sell at a premium to the equivalent domestic models, that require big discounts to get them off the lot.
This is the crux of the Evolver typology. They want great design, personality and authenticity and they are often willing to pay for it. But reality bites and their ability to pay more can often take them out of the game. Get the balance right though and you will have a willing audience.
This is particularly obvious in the real estate development field. One of the most Evolver friendly types of projects are the mixed use “Lifestyle Centers”, combining condos, outdoor shopping and entertainment. These should be Evolver nirvana. Time and again developers get themselves in to trouble with the residential part of these concepts, basically because they don’t understand the Evolver typology. The homes either go to upscale, pricing the Evolvers out (but not appealing to NEOs), or to mainstream, by trying to appeal to everyone (and hence no-one). This latter approach usually means the designs are compromised and the homes are to large, making the price points to high for the Evolvers’ economic realities, taking out their best market.
This is what happens when you define you market on redundant segmentations based upon age, such as “Baby Boomers”, “Empty Nesters”, etc. It is attitude and behavior that are more important in determining who will actually buy.
Ironically what often ends up happening is that many of the homes get turned in to rentals, ironically leased out at affordable levels to the very Evolvers who they should have been built for and marketed to in the first place.
Don’t believe me? Go into the parking and count the Mazda 3’s!
NEOBLOGGER
This is true. So far the objective of this blog has been to contrast the concept of the Traditional, which most clearly understand, with the NEO as identified by Ross Honeywill’s analysis of the actual spending habits of over 800,000 consumers. A good question is then; how do Evolvers, who represent nearly a quarter of the population, fit into this?
The answer is partially in the name. Evolvers is actually short for “Evolving NEOs”, which implies they have all of the same characteristics as NEOs, just with less spending power. This is especially the case if your purchase price is relatively low.
An example is Larkburger, the outstanding Colorado hamburger company that makes delicious sandwiches, truffle and Parmesan fries, as well as the $5 Shake that are a huge hit with the mini-Neobloggers. The stores are as environmentally friendly as you can imagine and absolutely everything is recycled or compostable. Of course prices are significantly higher than the mainstream burger chains, but those who care about quality over price are clearly happy to pay the difference.
In this instance the difference between NEOs and Evolvers is essentially meaningless. Even though the price of the product is two to three times that of a mainstream alternative, in absolute terms it is only a few bucks. However as we rise up the price scale the distinction between the two groups becomes more vital.
Although Evolvers have many of the same instincts as NEOs, they are significantly more constrained by their wealth and income. If they had more money they would be NEOs in a heartbeat, they just can’t always make the jump. This does not mean however that they are not great potential customers if you understand them. No company does this better than Mazda. In fact the Mazda 3 is almost the official car of Evolvers! Allied with the Zoom-Zoom identity you get a car with great design, sporty characteristics and plenty of individuality at a great price. Interestingly though, they are consistently able to sell at a premium to the equivalent domestic models, that require big discounts to get them off the lot.
This is the crux of the Evolver typology. They want great design, personality and authenticity and they are often willing to pay for it. But reality bites and their ability to pay more can often take them out of the game. Get the balance right though and you will have a willing audience.
This is particularly obvious in the real estate development field. One of the most Evolver friendly types of projects are the mixed use “Lifestyle Centers”, combining condos, outdoor shopping and entertainment. These should be Evolver nirvana. Time and again developers get themselves in to trouble with the residential part of these concepts, basically because they don’t understand the Evolver typology. The homes either go to upscale, pricing the Evolvers out (but not appealing to NEOs), or to mainstream, by trying to appeal to everyone (and hence no-one). This latter approach usually means the designs are compromised and the homes are to large, making the price points to high for the Evolvers’ economic realities, taking out their best market.
This is what happens when you define you market on redundant segmentations based upon age, such as “Baby Boomers”, “Empty Nesters”, etc. It is attitude and behavior that are more important in determining who will actually buy.
Ironically what often ends up happening is that many of the homes get turned in to rentals, ironically leased out at affordable levels to the very Evolvers who they should have been built for and marketed to in the first place.
Don’t believe me? Go into the parking and count the Mazda 3’s!
NEOBLOGGER
Monday, June 15, 2009
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.
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.
Wednesday, June 10, 2009
A word about Pricing
One of the things that often confuses people about this whole subject is pricing. People who are as Traditional as Mcdonald’s Apple Pie start to think they might be a NEO because they bought something pricey. Whereas someone else, who is as NEO as the Organic Apple Crumble at The Kitchen in Boulder, Colorado start to confuse themselves, just because they switched cable providers to save $30 a month.
Let’s try and clear this up. Traditionals spend money, lots of it. And NEOs often shop on price. In fact, (and this is really important) when price is the only differentiator, NEOs behave exactly like Traditionals.
Confused? Don’t be.
Consider telephone service. Does it really matter if you get it from the cable company or the local Telco? Not really. They are both huge corporate behemoths that are almost entirely indistinguishable. The product is basically the same – I pick it up, dial a number, talk, put it down – not much differentiation there! As a result, the only relevant factor between the services is price, so it is entirely logical that whoever offers the best price / bundle / deal is the one that both NEO and Traditional alike would chose.
This is the crux for marketers and entrepreneurs in all sorts of industries. If you are trying to sell something that is basically exactly the same as the next guy’s product or service (from the consumer standpoint not your VP of Engineering’s) then you must be the lowest price provider if you want to win. No list of features or inane lifestyle marketing imagery is going to save you (Sorry 99% of all real estate developers!)
I love Mark Wattles', the CEO of Ultimate Electronics angle on this. Their corporate tag line is “if you buy it somewhere else, you will pay to much.” Brilliant. This is price orientated Traditional marketing at its best. Lowest price, no effort. Of course it means they have very low margins and need to move a lot of inventory to make money, but that’s exactly who they are. Wal-Mart
I am in no way ever going to criticize people like the Wal-Mart or Mark Wattles and not only because they have great lawyers. These guys are rock stars, in that they have tapped into the psyche of the Traditional consumer and the undifferentiated NEO and Evolver and completely nailed it. They deserve their success.
However if your business goals aren’t defined in the millions of units, this poses a major problem. Almost every industry has a low price competitor. If you cannot meaningfully distinguish why you should be valued in a different way is obviously the king of this. No product differentiation, authenticity, design, provenance, or anything else to connect with on a personal level - just the lowest price. Guaranteed. AND understand how to connect with people who will pay the difference, then you are in a trap. Stuck in the middle between the price is everything crowd and totally missing the unique discovery higher margin group. This is not a good place to be.
After all, nobody ever got rich with a marketing plan that ran “Buy anywhere else and you will pay a little bit less than we charge.” Ask Circuit City!
NEOBLOGGER
Let’s try and clear this up. Traditionals spend money, lots of it. And NEOs often shop on price. In fact, (and this is really important) when price is the only differentiator, NEOs behave exactly like Traditionals.
Confused? Don’t be.
Consider telephone service. Does it really matter if you get it from the cable company or the local Telco? Not really. They are both huge corporate behemoths that are almost entirely indistinguishable. The product is basically the same – I pick it up, dial a number, talk, put it down – not much differentiation there! As a result, the only relevant factor between the services is price, so it is entirely logical that whoever offers the best price / bundle / deal is the one that both NEO and Traditional alike would chose.
This is the crux for marketers and entrepreneurs in all sorts of industries. If you are trying to sell something that is basically exactly the same as the next guy’s product or service (from the consumer standpoint not your VP of Engineering’s) then you must be the lowest price provider if you want to win. No list of features or inane lifestyle marketing imagery is going to save you (Sorry 99% of all real estate developers!)
I love Mark Wattles', the CEO of Ultimate Electronics angle on this. Their corporate tag line is “if you buy it somewhere else, you will pay to much.” Brilliant. This is price orientated Traditional marketing at its best. Lowest price, no effort. Of course it means they have very low margins and need to move a lot of inventory to make money, but that’s exactly who they are. Wal-Mart
I am in no way ever going to criticize people like the Wal-Mart or Mark Wattles and not only because they have great lawyers. These guys are rock stars, in that they have tapped into the psyche of the Traditional consumer and the undifferentiated NEO and Evolver and completely nailed it. They deserve their success.
However if your business goals aren’t defined in the millions of units, this poses a major problem. Almost every industry has a low price competitor. If you cannot meaningfully distinguish why you should be valued in a different way is obviously the king of this. No product differentiation, authenticity, design, provenance, or anything else to connect with on a personal level - just the lowest price. Guaranteed. AND understand how to connect with people who will pay the difference, then you are in a trap. Stuck in the middle between the price is everything crowd and totally missing the unique discovery higher margin group. This is not a good place to be.
After all, nobody ever got rich with a marketing plan that ran “Buy anywhere else and you will pay a little bit less than we charge.” Ask Circuit City!
NEOBLOGGER
Monday, June 8, 2009
Consumers AREN”T Changing!!!!!
If you consume any sort of media you probably have heard something along the lines that “Consumers are reacting to economic hardships by doing this or that…” Generally they take the line that conspicuous consumption is now out and those with money are now spending it in far more low-key ways. Look at this article from Australia’s Sydney Morning Herald titled “Luxury and Wealth Head Underground”
Without wishing to shout: THIS IS WRONG, WRONG AND BEYOND THAT…. ENTIRELY WRONG!!!
Consumers aren’t changing. However the make up of the market has. If you are smart you are going to want to adjust to this quickly as it will very probably be the line between success and failure over the coming years.
The research behind the Fingerprint Strategy clearly paints the picture of a world of consumers split in two:
On one side you have the Traditionals – price driven and brand orientated. When times are good they follow the herd and spend freely (especially if they get a deal) on homes in the suburbs, consumer electronics, cars and an array of high status “branded” products. However they react to economic stress by putting the wallet away, battening down the hatches and only making discretionary purchases if they get such an incredible deal (with a money back guarantee) that they just can’t stop themselves. Worse still, they stay in this mode for a long, long time - until it is clear that it is safe to come out. If you want to sell to these guys in the next 3 years, you have to give them the lowest price, then lower it and even then give them some way of reducing the risk of doing nothing.
On the other side of the equation we have the NEOs and their kindred spirits the Evolvers (who act and think like NEOs in almost every way but just don’t have the same income and purchasing power). These people are always on the lookout for products and services that connect with them on a personal level. This could be through design (iPhones), provenance (local artisan foods), or a whole range of other ways that create individualized personal solutions to daily life. Price is a factor for the NEO, but only one of many.
When economic stress hits, the NEO consumer has a very different reaction. Many see it is an opportunity. They remain entirely NEO, continuing to look for products and people that make their lives richer, easier and more authentic, especially if it involves jettisoning the mundane tasks of life. They may switch consumption patterns a little; such as forgoing the three $10 bottles of Red Truck they may have been buying each week. However in its place is likely to be the $35 bottle of 2005 Whitehall Lane Cabernet that scored 94 points on winespecatator.com. In the recession of the early part of this decade (yes we had one!) a Goldman Sachs’ study showed increase sales of premium wines while overall wine sales went down significantly. This is the NEO consumer at work and the same will be happening now.
What is occurring in the economy is far more complex than most commentators understand. Apple posts record revenue and profits while Dell, who are cheaper at every price point, sees sales crumble. Audi sales remain relatively strong (up 11.9% for 2008 in Canada) while GM and Chrysler slip into bankruptcy. Chipotle Restaurants have 5.8% growth in comparable restaurant sales, while Bennigans stores are shuttered. This subtlety gets explained (or ignored) as an anomaly but there are hundreds of similar examples of companies that appeal to NEO and Evolver consumers that are able to keep growing, making sales and flourish, while the Traditional mainstream withers.
This is the new consumer reality. Consumers haven’t changed one little bit. They are behaving exactly as we knew they would. All that has happened is that the Traditionals have pulled back, saving money, looking for deals as they always do when times are rough (and these are some of the roughest we have seen). The people you see now, who are out there buying unique, authentic goods and services; they haven’t changed one iota either. It’s just now that the masses have cleared out of the way and you can really see them. Get used to it, they are where the opportunity lies.
NEOs – learn them or lose them.
NEOBLOGGER
Without wishing to shout: THIS IS WRONG, WRONG AND BEYOND THAT…. ENTIRELY WRONG!!!
Consumers aren’t changing. However the make up of the market has. If you are smart you are going to want to adjust to this quickly as it will very probably be the line between success and failure over the coming years.
The research behind the Fingerprint Strategy clearly paints the picture of a world of consumers split in two:
On one side you have the Traditionals – price driven and brand orientated. When times are good they follow the herd and spend freely (especially if they get a deal) on homes in the suburbs, consumer electronics, cars and an array of high status “branded” products. However they react to economic stress by putting the wallet away, battening down the hatches and only making discretionary purchases if they get such an incredible deal (with a money back guarantee) that they just can’t stop themselves. Worse still, they stay in this mode for a long, long time - until it is clear that it is safe to come out. If you want to sell to these guys in the next 3 years, you have to give them the lowest price, then lower it and even then give them some way of reducing the risk of doing nothing.
On the other side of the equation we have the NEOs and their kindred spirits the Evolvers (who act and think like NEOs in almost every way but just don’t have the same income and purchasing power). These people are always on the lookout for products and services that connect with them on a personal level. This could be through design (iPhones), provenance (local artisan foods), or a whole range of other ways that create individualized personal solutions to daily life. Price is a factor for the NEO, but only one of many.
When economic stress hits, the NEO consumer has a very different reaction. Many see it is an opportunity. They remain entirely NEO, continuing to look for products and people that make their lives richer, easier and more authentic, especially if it involves jettisoning the mundane tasks of life. They may switch consumption patterns a little; such as forgoing the three $10 bottles of Red Truck they may have been buying each week. However in its place is likely to be the $35 bottle of 2005 Whitehall Lane Cabernet that scored 94 points on winespecatator.com. In the recession of the early part of this decade (yes we had one!) a Goldman Sachs’ study showed increase sales of premium wines while overall wine sales went down significantly. This is the NEO consumer at work and the same will be happening now.
What is occurring in the economy is far more complex than most commentators understand. Apple posts record revenue and profits while Dell, who are cheaper at every price point, sees sales crumble. Audi sales remain relatively strong (up 11.9% for 2008 in Canada) while GM and Chrysler slip into bankruptcy. Chipotle Restaurants have 5.8% growth in comparable restaurant sales, while Bennigans stores are shuttered. This subtlety gets explained (or ignored) as an anomaly but there are hundreds of similar examples of companies that appeal to NEO and Evolver consumers that are able to keep growing, making sales and flourish, while the Traditional mainstream withers.
This is the new consumer reality. Consumers haven’t changed one little bit. They are behaving exactly as we knew they would. All that has happened is that the Traditionals have pulled back, saving money, looking for deals as they always do when times are rough (and these are some of the roughest we have seen). The people you see now, who are out there buying unique, authentic goods and services; they haven’t changed one iota either. It’s just now that the masses have cleared out of the way and you can really see them. Get used to it, they are where the opportunity lies.
NEOs – learn them or lose them.
NEOBLOGGER
Thursday, June 4, 2009
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
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
Monday, June 1, 2009
Enquiring minds wanted!
The purpose of this blog is to challenge you to think about how you see the world and what is causing the things you read about every day. I am going to be unashamedly biased, as I want you to stop seeing the world in “on average.” To an enquiring mind the average information usually tells you absolutely nothing. If I am 220 lbs. and you are 180, on average we are 200.lbs – That doesn’t make me any slimmer!
In addition I want to help you see what is really going on in the world around you. Rarely is it any of the “new trends” that the media love to focus upon. Hopefully you know that if two friends of a journalist buy a packet of Marlboro Lights, it is less than 48 hours before this is identified as “people taking up smoking to deal with stress” story hits the headlines. Its not true, it isn’t backed up by any proof, it is just the flotsam and jetsam that passes for social commentary in a lot of our media and instantly forgotten when those same two friends join 24 hour Fitness the following week!
My goal is to give you a perspective upon what the world looks like when you aren’t looking at the average numbers, when you start to look for nuances so you can see things in a different light. Having spent the best part of the year understanding the research that Ross Honeywill of the Social Intelligence Lab in Australia has put together I have to tell you I have changed. It’s not just that I feel more educated, I actually feel vindicated. That the way I have always had a gut feeling about the world has suddenly been scientifically proven. I intend in this blog to shine a light on the impact of NEOs on all elements of society. We will look at business, politics, current events, finance, sport and anything else that comes up. I intend to give you a slant on things as if every one of us doesn’t think, act and do exactly the same.
I’m not average, you probably aren’t either!
The group that we have identified as NEOs is not just those with the highest propensity to spend money and are motivated by a whole lot more than most media and marketers understand. They are also more than just the people that will dominate the real estate market for the next 5 years. Significantly, they are politically and socially active, from every generation and are ever more important in society. They are leading the changes in every area of our life and hardly anyone recognizes it. Keep reading this blog and you will.
It doesn’t matter when you were born, that tells us nothing about you other than your age, everything beyond that is an assumption based upon labels others have created. Think about it for a second. Do all baby boomers play golf, complain about health care and want to sell their house and move into a condo? Plenty do, millions don’t. Are all 20 year olds the same – of course not! Some of them are having the asses shot at in the Army while others are snowboarding and drinking their body weight in beer every night – what really does age have to do with it?
We are interested in what you do and why you do it!
So if you are interested in seeing the world through a completely new filter then I encourage you to click on your bookmarks and add this blog. If you don’t know how to do this I think we can safely assume you are not a NEO!
I will do my part and keep it updated with thought provoking posts. All you have to do is come back and read it (and tell everyone else you know to do so as well!).
Come back soon and we will start exploring how 24% of the population is flying under the radar and influencing everything.
NEO Blogger
In addition I want to help you see what is really going on in the world around you. Rarely is it any of the “new trends” that the media love to focus upon. Hopefully you know that if two friends of a journalist buy a packet of Marlboro Lights, it is less than 48 hours before this is identified as “people taking up smoking to deal with stress” story hits the headlines. Its not true, it isn’t backed up by any proof, it is just the flotsam and jetsam that passes for social commentary in a lot of our media and instantly forgotten when those same two friends join 24 hour Fitness the following week!
My goal is to give you a perspective upon what the world looks like when you aren’t looking at the average numbers, when you start to look for nuances so you can see things in a different light. Having spent the best part of the year understanding the research that Ross Honeywill of the Social Intelligence Lab in Australia has put together I have to tell you I have changed. It’s not just that I feel more educated, I actually feel vindicated. That the way I have always had a gut feeling about the world has suddenly been scientifically proven. I intend in this blog to shine a light on the impact of NEOs on all elements of society. We will look at business, politics, current events, finance, sport and anything else that comes up. I intend to give you a slant on things as if every one of us doesn’t think, act and do exactly the same.
I’m not average, you probably aren’t either!
The group that we have identified as NEOs is not just those with the highest propensity to spend money and are motivated by a whole lot more than most media and marketers understand. They are also more than just the people that will dominate the real estate market for the next 5 years. Significantly, they are politically and socially active, from every generation and are ever more important in society. They are leading the changes in every area of our life and hardly anyone recognizes it. Keep reading this blog and you will.
It doesn’t matter when you were born, that tells us nothing about you other than your age, everything beyond that is an assumption based upon labels others have created. Think about it for a second. Do all baby boomers play golf, complain about health care and want to sell their house and move into a condo? Plenty do, millions don’t. Are all 20 year olds the same – of course not! Some of them are having the asses shot at in the Army while others are snowboarding and drinking their body weight in beer every night – what really does age have to do with it?
We are interested in what you do and why you do it!
So if you are interested in seeing the world through a completely new filter then I encourage you to click on your bookmarks and add this blog. If you don’t know how to do this I think we can safely assume you are not a NEO!
I will do my part and keep it updated with thought provoking posts. All you have to do is come back and read it (and tell everyone else you know to do so as well!).
Come back soon and we will start exploring how 24% of the population is flying under the radar and influencing everything.
NEO Blogger
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