Does your marketing attract a NEO?
Online advertising is growing faster that any other segment of the advertising industry. Faster than Press, faster than outdoor, and definitely faster than TVC's. For the most part, this is a direct response to an aggressive new type of customer, a customer that can boost your profitability and share of wallet - if you target them properly.
Introducing the NEO consumer
The Yahoo! Neo group partnership has identified the characteristics and behaviours of an emerging customer segment which they dub the "New Economic Order" (or NEO) consumer, and if you're not actively including this customer in your next campaign, you might be excluding a significant stream of revenue.What exactly is a NEO consumer?
The NEO is your NEW high-value customer. In a nutshell, the NEO's:- Consume constantly and favour a sense of investment
- Focus on discretionary choices and value-added services
- Craves rich information, authenticity and ‘provenance'
- Are motivated by choice, options, service and quality
- Focus on brand relationship ahead of transaction
- Look for help in planning & organizing their lives
- Are sceptical that discounts & deals will deliver their expected experiences
- Are loyal to brands that ‘understand' them
- Are comfortable with calculated risks
- Crave corporate memory-recognition over time
What's more, statistically, NEO's earn more because they are NEO's . NEO's represent Sixty to seventy percent of individuals earning between $90k to $130k p.a., and over fifty-five percent of individuals earning above $130k p.a. are NEO's.
And even better, NEO's are the most likely consumers to part with that hard earned cash. The Neo consumer has the highest propensity to spend on both luxury goods like high-end vehicles and red wine to investment-related purchases like property investment and investment loans.
How to spot a NEO
NEO's cross all age barriers, but are mostly represented by the 20 - 39 year old age bracket. They are slightly more likely to be male, but not significantly (55% male, 45% female).And NEO's characteristically have a stronger view of their place in society and their contribution therein. In the current Australian corporate climate where every large company is falling over themselves to appear socially responsible, this is a very useful way ‘in' to tapping this client base.
Technology is their friend
Apart from being naturally early adopters, the NEO consumer allows technology into their lives to help them control their life outcomes. When asked a series of questions about this topic, NEO's reported the highest ‘agreed' response to all of the following statements:- "Computers and technology give me more control over my life."
- "I view a mobile phone as a tool to help me manage my time better."
- "I go out of my way to learn everything I can about new technology."
- I need a mobile phone to help me juggle my work and personal life."
Cyberspace is the NEO's playground
NEO's spend more time on the Internet than the rest of the populace. And in fact, they are the most willing sector to enter their credit card details on the internet, which effectively means that NEO's dominate all online activity, from paying bills electronically, to viewing financial news, to online trading.What this means for the business owner, is that a NEO can be enticed, educated, offered to, sold to and upsold all by the same media, potentially at the same time, all in a single contact.
The Mindset of the Neo - your insight into their psyche
Of the 39 key variables that define the NEO consumer, these 10 provide a valuable understanding of the segment. Here, now, are ten aspects of what the NEO thinks:1. "Treat me as an individual - not as one of the crowd."
2. "Know who I am and talk to me - personally."
3. "Build a relationship with me and I will be loyal."
4. "Give me great information on what I buy."
5. "Don't give me artificial ‘events' - be authentic."
6. "Challenge me - don't be afraid of being edgy in your approach."
7. "Put me in control at all times."
8. "Leave the ‘loop' open - embrace complexity."
9. "Keep changing and evolving with me."
10. "Help me plan - to be in control of my own life."
A quick few facts about the NEO consumer which reinforces their value to your organisation's bottom line:
- 91% of NEO's are online at home, compared to 62% of the general population
- 57% of NEO's are heavy internet users (more than 8 times a week)
- 61% of NEO's have purchased over the internet, compared to 25% of the general population
- 90% of NEO's own a mobile phone
- NEO's are emotionally Driven
- NEO's are experience-hungry and enjoy going out to concerts, movies, live theatre and restaurants
- NEO's also enjoy their own space and are therefore more likely to rent a DVD or entertain at home
The off-line retail cycle in Australia has been saturated, and is currently at its peak. But the NEO's will drive the ascendancy of online retail sales in the future.
Can you afford not to target this group in your next campaign?
Sources: Roy Morgan Single Source Sept 04; & center for Customer Strategy; The NEO group and Yahoo! Australia & New Zealand