Why Demographics Fail: Building Fast Friends at Scale Through Values with David Allison

The Future-Ready Advisor

Episode Overview

In this episode of The Future-Ready Advisor, host Sam Sivarajan sits down with David Allison, founder of Value Graphics Research Company and author of The Death of Demographics. David challenges traditional assumptions about consumer behavior and reveals why demographics are only 10% accurate in predicting client behavior.

This conversation explores the shift from demographic analysis to values-driven insights, uncovering how understanding client values can transform advisor-client relationships. David shares groundbreaking research, including his surprising Fox News vs CNN study, and provides practical tools for financial advisors to build deeper trust and create "fast friends at scale" with their clients.

Key Quote

"Demographics are only 10% accurate. People only do things that align with their values." — David Allison

Key Takeaways

• Demographics provide only superficial understanding - they're 10% accurate in predicting behavior and essentially large-scale stereotyping
• Values are the true drivers of decision-making - there are only 56 core values that influence all human behavior
• Asking the right questions reveals true values - avoid asking directly about values; use secondary lines of questioning about daily life and decisions
• Shared values can bridge political and cultural divides - even opposing groups like Fox News and CNN viewers share core values like family
• The three-legged stool approach works best - combine demographics, psychographics, and value graphics for complete client understanding

Sound Bites

• "There's only 56 values that drive every decision people make."
• "You can't connect if you're always performing based on demographic assumptions."
• "Don't judge a book by its cover - demographics are incredibly misleading."
• "Values-driven investing can finally become a reality instead of a wish and a dream."
• "Human behavior is now measurable and mappable, not just a guess."

Topics Discussed

01:05 - The Shift from Demographics to Values: David's Origin Story 04:02 - Understanding Human Behavior and Decision Making

09:31 - The Value Graphics Database: 56 Core Values Explained 18:03 - The Fox News and CNN Study: Finding Common Ground 25:44 - The Challenge of Identifying True Values Through Secondary Questioning 34:09 - Building Fast Friends at Scale Through Shared Values 40:31 - Integrating Value Graphics with Traditional CRM Data

Resources Mentioned

• David Allison's Book: The Death of Demographics
• Learn more about David Allison: LinkedIn Profile
• Value Graphics Research: valuegraphics.com
• Speaking and Consulting: David Allison, Inc.

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