What is the New Economic Order? A short video from an excerpt of the book One Hundred Thirteen Million Markets of One – How the new economic order can remake the American economy explains this phenomenon in a fascinating way.
Authors Chris Norton and Ross Honeywill share with us how the American economy has changed since the most recent recession, and how we can help the economy and ourselves by understanding why. The video divides consumers into two groups: NEO and Traditionalists. The “New Economic Order” or NEO, is essentially all about quality. NEO consumers make up 77% of consumer spending. Understanding the NEO is essential for business owners if they plan to prosper.
In order to cash in on the spending between these two worlds, businesses must define which group to appeal to, and specialize in that common interest. Instead of attempting to wear many hats in order to appeal to all, (which always ends up with people spreading themselves too thin), it is important to narrow down what you do well, and really perfect it.
This crucial information can be applied to a multitude of divisions within the business world. My closest example of this relation is, of course, to email marketing. When I am planning email campaigns for businesses that are hoping to catch the attention of a specific group, I know that they will see the most success if we create a segment that is specifically targeted. If we select the people in their consumer group to whom this email will most appeal to, it is almost always guaranteed that there will be a higher success rate in email opens, interaction and responses.
The NEO provides intelligent insight pertaining to decision-making and segmentation for businesses. Getting caught in the middle of the Traditional Economic Order and the New Economic Order is the result of senseless planning that attempts to please everyone, which as demonstrated, can be detrimental.