Think Customers: The 1to1 Blog

Prince, president of market research and consulting firm Prince & Associates, and Schiff, leader of private wealth advisory firm Advanced Planning Group, came up with the concept after noticing the growing influence of these newly-minted millionaires.

“Most of us, to be successful in our personal lives, seek stability most of all,” Schiff says. “That makes family life easier. But the way the world works from a business point of view these days, with so much change going on, is that companies need the flexibility to change if it makes economic sense, sometimes very quickly. The middle-class millionaire can balance both that stability and that flexibility.”

Typically the MCM works more hours, nights, and weekends than a typical member of the middle-class, and is also asked their opinion more often: from 35 topics ranging from work habits to education to spirituality, the authors found that the MCM was asked for his opinion or input more often than the middle-class in 30 cases.

By their nature, the MCM is also more willing to take a risk – and thus is more likely to fail, though Schiff says that the group is also more likely to try again, while the middle-class shows a tendency towards simply giving up.

“They also tend to recruit people more,” Schiff says. “If you have a product or service that you feel can help the middle class, it makes sense to show it to the middle-class millionaire first.”

Putting the concept into practice requires a belief in a kind of trickle-down theory, which Schiff says is already being experienced at Tesla Motors, manufacturer of high performance, consumer-oriented electric vehicles. “Tesla has introduced a Roadster that retails for nearly $100,000,” Schiff notes. “It appeals to everybody but is only affordable to a few. [MCMs are] early adopters and don’t mind paying more for that privilege. For the lower classes, Tesla is rolling out the $60,000 WhiteStar sedan and, later, the $30,000 BlueStar sedan, with the same electric engine technology. It’s an example of marketing and product development strategy at the same time.”

The same process can be found in a number of industries, with consumer electronics being perhaps the most obvious. But, Schiff believes, “There is virtually no product or service that cannot apply this. Companies simply need to look at their product and think about how they can help [the MCM] become their best and most highly valued client --and therefore apostle.”