owning the experience

There is growing evidence that consumers are becoming less interested in conspicuous consumption.  From Millennials, who are (sometimes unwillingly) slow to launch their own independent households to Baby Boomers who are downsizing into smaller, more urban locations to the growing impact of Mari Kondo’s KonMari method of decluttering  - living with less is an important new cultural trend.

Coupled with this trend away from consumption of stuff is the trend toward using our time and money for Experiences. You can look to social media - when was the last time a friend shared an image of a new purchase, such as a car or house?  Yet our newsfeeds are full of pictures of exotic trips, restaurant visits, concerts and sporting events.

The new campaign from Groupon highlights this insight.  The TV ads compare the “Haves” and their mansions full of gaudy stuffy and the “Have-Dones” who are engaged in life through experiences like sky-diving, dining out, getting spa treatments or visiting a fun-park. In a press release for the campaign launch, Vinayak Hegde, Groupon’s CMO highlighted that this new focus is based on research findings that experiences been scientifically proven to make consumers happier.

Two immediate takeaways from the new campaign:

• The “Haves”, with their collections of gaudy stuff are cast as older and unsociable. “Have-Dones” by contrast are youthful and spirited.  Which portrayal is more aspirational is pretty obvious.
• Experiences are shareable - participants are shown enjoying activities with a good friend, a spouse, children - evidence of the experience is shared with the larger group of friends and family via selfies and social media.

The TV ads close with “If you’re going to own something, own the experience.”  Some thoughts for marketers

• Are there ways to enhance the experiential qualities of your product/service?
• How important is shareabilty for your consumer?