I recently came across a blog by Ross Honeywill explaining an interesting new concept, New Economic Order (NEO) typology. This North American population classification splits society into two buckets: the traditional economic order (traditionalists) and the new economic order.
NEOs are socially progressive, have a lot of discretionary income and are big spenders — so much so that 92 percent fall into that spending category as well as the top one-third of discretionary spenders in the world, according to Honeywill’s information.
Conversely, traditionalists are more conservative in their social attitudes. They are price sensitive and reluctant to spend money. They seek deals and focus on deal features and functions as opposed to feeling a personal connection.
NEOs, who make up a quarter of the population, have substantial social and economic clout. They are drawn to purchasing the latest and greatest technologies and showcasing their status with home renovations, travel and fine dining. They desire services to make their lives easier, more individual and controllable. A NEO votes, goes to college and has a professional or executive role.
NEOs are born NEOs and will remain either a NEO or an evolving NEO for life. Likewise, traditionalists are born and will die traditionalists.
Profiling NEOs
Most NEOs prefer to live in urban and metropolitan areas. According to Honeywill, there are 59 million NEOs in the U.S. — 45 percent women and 55 percent men.
For people between the ages of 20 and 50, NEOs exceed the national average in every profile. Traditionalists, on the other hand, dominate the national averages for those 50 and older. Fifty percent of all university graduates are NEOs, and NEOs are four times more likely to have degrees.
While NEOs typically earn more, that higher earning power isn’t what makes them NEOs. Instead, they earn more because they are NEOs, according to Honeywill. While a person’s income doesn’t necessarily dictate how much they spend, NEOs do spend more than traditionalists, and they spend more frequently.
NEOs are planners and take calculated risks — like starting and running small businesses. They are mobile, and 20 percent are contemplating a job change at any given time, compared to only 12 percent of traditionalists.
Motivating factors
With NEOs, much of their life is lived online, where they can accelerate mundane tasks such as banking, staying in touch, booking travel, purchasing items, etc. In addition to their high discretionary spending, they also heavily consume all types of media.
NEOs are deeply influenced by social issues, with nearly half demonstrating progressive social attitudes compared to 1 in 5 traditionalists. NEOs are attracted to all things new and are early adopters.
NEOs like themselves, their choices and their jobs. They like to look stylish and are predominantly extroverted, according to Honeywill.
NEOs are passionate, active and involved. In seeking the path less traveled, they still encounter mainstream culture such as football, but their individual twist on society distinguishes them and makes them a challenging audience for mainstream marketing.
Interested in learning more? Watch the NEO video.
