1: NEOs as Economic Drivers

Overview

NEOs punch far above their weight in economic influence. While they represent a minority of the population, their discretionary spending and demand for quality and innovation drive premium markets and create ripple effects across global industries.

Key Points:

NEOs’ value makes them the Right Customers:

In Australia, the NEO economy is $512 billion, compared to the $267 billion Traditional economy.
NEO per capita spending: A NEO’s discretionary spending is $40,000pa, and total expenditure is $100,000pa.
Traditional Per Capita spending: A Traditional’s discretionary spending is $10,000pa, and total expenditure is $25,000pa.
BTW ... Aspiring NEOs’ discretionary per capita spend is $21,000pa, and total is $52,580.

(An Aspiring NEO has many of the mindset characteristics of a NEO, but their lower spending prevents them from being classified as a NEO)

SUMMARY: The Right Customer spend 4 times more than The Wrong Customer.

Global Presence:

65 million NEOs in the U.S., 18 million in the UK, and 146 million in China, demonstrating their widespread economic impact.

Case Study:

The rise of Apple showcases how NEOs fuel high-value brands. NEOs are drawn to Apple’s non-price positioning, innovative design, and emotional storytelling.

Activity:

Identify a company that has successfully targeted NEOs and imagine how this has contributed to its market dominance ... consider what you could apply to your business.