experience matters

While it seems that consumer confidence is starting to turn around, reaching its highest level in almost a year and a half, President Obama’s recent State of the Union address, signals that the poor economy and job instability are still priorities to many Americans.

A few weeks ago, we decided to ask our Critical Mass ShopTalk research community who represent a broad demographic of consumers across the United States, what they will be spending more and less on in 2010, including both time and money. What we heard from them was both expected and surprising.

Consumers talked about spending more time on hobbies and interests, with family and friends and of course the resolution favorite, exercising.  What’s interesting, though, is that a large number of consumers also talked about spending less time worrying or focusing on things beyond their control, like the economy or the job market. Many seem intent on living in the present and enjoying what they have today. While our community is mindful of the poor economy and the fact that saving and scrimping are ever-present goals and challenges, many want to worry less about the uncertain future and instead concentrate on the present.

The word cloud below captures the key words consumers used when asked what they will spend their time on in 2010.

Other activities that consumers say they won’t be spending as much time on in 2010 include TV and the internet, most notably social networking sites. Consumers talked about devising strategies to limit their time in these arenas so that they can spend more time outdoors or engaging in more active and/or quality pursuits with their families. While these are admirable goals, I’m not sure how much people will be sticking to this. If they really want to stress and worry less, I think TV and Facebook provide great distractions from the everyday pressures of life. I’m looking forward to seeing whether our consumers stick to this goal.

In terms of money, consumers talked about increasing their spending on activities that create memorable experiences for themselves and their families, while spending less on tangible non-essential items.  Another notable resolution for the New Year is decreased spending on eating out and expensive forms of entertainment like concerts and sporting events. While these motivations are largely tied to diet and saving money, when you combine this with consumers’ intentions to spend more time at home and money on home renovations, it also suggests that consumers are seeking to make their homes into safe and comfortable havens away from the world. Again, this says to me that consumers have grown weary of facing the same challenges they faced in 2009 and they are now looking to spend more time and money on experiences that will help cocoon them, both literally and figuratively, from the negativity that previously dominated their lives.

These findings have many implications for marketers:

• Consumers want to enjoy their lives and spend more time connecting with their friends and family. They want to spend their money on memorable experiences and not on products that might end up in the trash. We need to consider how different brands will help consumers feel connected and appeal to their need to memorialize occasions and events.
• Consumers want to cut back on the time they spend aimlessly on the internet and watching TV. While it appeals to their sense of escapism, many are regretful afterwards about the time they spend. We need to justify their time spent in these arenas by reframing this as time that is spent for their wellbeing, promoting both the regenerative and connective benefits.
• Consumers see spending time at home not only as means to save money but also as a sanctuary where they can feel safe. Therefore, we need to make sure that our ideas and initiatives are mindful of this and consider how products, services and marketing messages can cater to the basic psychological needs of security and protection.

Stay tuned to find out more about consumers from our ShopTalk community throughout 2010…