A Tale of Two Cities: The Haves and Have-nots

My travels recently took me to Easton, PA, a city of 27,000, fifty-five miles north of Philadelphia[i].  I found it to be a curious place, an amalgamation of what our country used to be and what it has become. Of any township I have been, Easton represents the melting pot that is America.

The night I was in Easton, the roundabout in the center of town was alive with music, a farmers market, and residents enjoying vegan wraps and ice cream.  Side streets featured outdoor cafes that you might expect in New York or Paris.

Trying to find my way back to my hotel, my smart device was less than smart and guided me through a neighborhood just a few blocks away from the square. It was another world entirely representative of the slice of America that is impoverished, and somewhat hopeless.  There were mothers walking the streets with children in tow and cigarettes in hand, seemingly wandering without any purpose.  The contrast was alarming.

I was reminded that my universe is a bubble. We go through life eating our fancy meals and driving our German cars, forgetful of how America’s heartland struggles to make ends meet. It is not unusual to come across a city that is economically diverse.  But to see a prideful small town with its historic buildings and church towers in such decay reminds me that America is a land of haves and have-nots.

It made me reflect on that fact that we are overly consumed with averages. With GNP expected to grow about 2% this year, we feel as though things are about as they should be. Yet averages are becoming exceedingly meaningless.

I really don’t offer this as a political commentary, but more as a socio-economic observation. I will leave the wage inequality debates to MSNBC and Fox.

As we consider the products we sell, and the people we employ, it is important we understand how fractured a society we have become.  Segmentation is an important concept, and understanding race, socio-economic trends and consumer behavior are key elements of defining how a company can deliver unique value.

As you think about products reaching end users, think with clarity about the individuals who will consume them. They are not averages, they are people, and their tendencies will differ radically based on geography and socio-economic profile.  Some companies go as far as conducting ethnographic studies, and profiling customer types.

They may have a profile for a housewife named Kate, who lives in Madison, and has two children, a dog, and likes to drink wine spritzers.  Jane lives in New York, is in a professional society, runs at 6 AM and can’t be bothered to cook. Knowing the Alice and the Jane’s is critical during a time when consumers are fickle in their purchasing habits. B2B purchasers may follow a similar pattern. In other words, a product or service may be consumed in different ways based on the profile of the customer and understanding how and why the product is used is paramount in delivering value.

My experience with mid-market companies is that they do not have ample information (in the form of research) to make such distinctions. Management teams should be crystal clear in the segmentation of their customers, and be more intentional in tweaking offers to address specific needs by segment.

Marc Emmer is President of Optimize Inc., a management consulting form, specializing in Strategic Planning. Marc can be reached at 661-296-2568. 

2110 views