What Do 'TechnoValues' Have To Do With How You Sell To Your Customers?

NOP World Technology, a unit of market researcher NOP World, conducted an online survey in the United States and Europe in the fourth quarter of 2003 in which more than 1,500 IT decision-makers were asked to rate how important specific values or principles are when they make decisions.

The IT decision-makers were asked to rate the importance of such values as power ("having control over people and resources"), productivity ("being efficient and effective"), pragmatism ("doing what is necessary and sensible"), thrift ("conserving resources") and others.

Based on what values they rated as important or not important, the IT respondents were grouped into the following seven distinct "TechnoValues" segments by factor and cluster analysis:

• Visionary Leaders: Ambitious and powerful, these individuals are successful achievers, but also maintain a work-life balance and are strongly pioneering. They place high importance on nonconformity ("breaking with convention, challenging authority"), but also on power.
• Mainstream Followers: These people go with the flow rather than take control over their careers. They are less interested in personal development, career progression or doing creative work than in equality ("desiring equal opportunity for all") and security ("minimizing risk and preventing danger").
• Independent Thinkers: These are nonconformists who want to improve and innovate. They are creative rather than pragmatic. While striving for excellence, their priority is to enjoy life. Important values are self-reliance ("being self-reliant, able to work independently") and innovation ("creating new things").
• Well-Rounded Team Players: Motivated by professional development and not personal gain, they wish to learn and grow while maintaining a work-life balance. Important values are open-mindedness ("open to change, accepting new ideas") and work-life balance ("getting the most out of all of life").
• Conservative Materialists: Orderly achievers motivated by personal and financial success, they take a professional approach, are conformists and are averse to taking risks. Important values are pragmatism and wealth ("making a lot of money; being highly profitable").
• Dedicated Altruists: Idealistic and pragmatic, they believe strongly in equality and are extremely disinterested in, and unmotivated by, professional and financial success. Key values are idealism ("helping to create a better world") and thrift.
• Aspiring Entrepreneurs: Innovative and open-minded, they strive for professional success. They are less concerned with work-life balance, but keen to develop their skills and do creative work. Important values are pioneering ("leading the way into new areas") and financial security ("operating without financial worries").

Spending Plans
In addition to asking respondents about their values, the survey also asked about spending plans for specific technologies. The likelihood to make purchases varied by segment and technology. For example, two-thirds of Aspiring Entrepreneurs report they will increase their spending on Web-based applications in 2004 vs. what they spent in 2003. In contrast, less than half of Mainstream Followers report they will be spending more on Web-based applications in 2004 vs. 2003.

Aspiring Entrepreneurs also report relatively bullish spending plans for wireless LANs, with more than half intending to spend more than the prior year. Conservative Materialists, however, are less enthusiastic about wireless LANs, with only 40 percent planning to spend more in 2004. And the Aspiring Entrepreneurs are less likely than other segments to spend more on security software in 2004.

In many technology categories, Visionary Leaders are ahead of others in increasing spending in 2004. Half of the Visionary Leaders expect to increase spending on professional services in 2004, while only one-quarter of Mainstream Followers expect to raise spending in this area.

The value in TechnoValues is in helping shape your communications and messaging to these various segments so that you stand a better chance of building a long-term relationship with your customers.

Richard March ([email protected]) is senior vice president for NOP World Technology, a business unit of NOP World.