There has been a clear shift in consumer priorities over the last five years. Rather than spending money on material goods and things, more people are chasing adventures, meeting up with friends and family, and opening their wallets for enriching experiences.
While this rings true across demographics, it's especially evident among the top 30% of earners. In fact, according to new Mastercard research, 60% of those top earners prefer to invest in experiences over things, with almost half saying that spending time with family and friends is a top personal goal.
As experiences continue to reign supreme, consumers will increasingly seek unique and interesting ways to connect with each other and their passions. Whether that looks like exclusive access to a chef's table to mark a special occasion or booking the golf trip of a lifetime, cardholders are set on spending to experience what's truly priceless in life.
Focus on passions, not things
This higher-earning demographic is driven to spend more time doing what they love; almost half say spending more time on their passions is a top-five personal goal for them this year. Sixty-one percent agree that they plan to be more intentional about pursuing their passions, with 69% planning to do so in the next year.
While there are many reasons for this shift, sometimes the simplest answer resonates the most: Investing in passions helps people feel more fulfilled and improves their sense of self. Mastercard's research shows that 73% of these consumers say the more time they spend on their passions, the more they feel like themselves.
Image to intention
The pivot is an indicator of a wider desire among cardholders to build a life rooted in a greater sense of purpose. Sixty-six percent agree they have become more intentional about how they spend their time, choosing to devote it to the relationships that matter most and the hobbies and activities about which they're most passionate.
As Bunita Sawhney, chief consumer product officer at Mastercard, explains, "It's clear that priorities are changing. Cardholders across the globe are making decisions that support a more meaningful life made up of memorable experiences with family and friends."
"Individual passions aside, there is one consistent truth — this is a customer segment that is critically important for brands," Sawhney continued. "We are laser-focused on identifying new ways for banks and financial institutions to best support the evolving needs of their cardholders. And that means evaluating the products and services available to this group to ensure they're meeting the consumer where they are and moving forward together."
Serving the shift
According to Mastercard, these consumers spend an average of 2.3 times more per card than other cardholders, which means brands serving this segment should take the opportunity to engage with this group in a more tailored way. The top 10% of US earners — those who make $250,000 a year or more — account for half of all spending, according to Moody's Analytics. Brands will benefit from tapping into consumers' desire to live with intention and foster connections with loved ones.
Imagine, for example, a cardholder and her family jetting from New York to London for vacation. Her bank provides access to elevated experiences for the entire family. They breeze through a dedicated security lane, book dinner reservations at a coveted restaurant, and enjoy front row seats at a concert to see a favorite artist. These experiences create lasting memories for the cardholder and her family.
Banks and financial institutions are ideally positioned to support their cardholders by leaning into the things that matter most to these consumers: building memories with loved ones. By unlocking access to incredible experiences, financial institutions can connect on an emotional level, moving beyond a transactional relationship to building long-term loyalty.
These insights have guided the curation of Mastercard's new, soon-to-be available suite of global experiential benefits, designed to support banks and capture cardholders' attention and loyalty by fostering the connections that are now key for today's consumer.
The return on investment
"Our research shows that consumers are increasingly driven by meaning and connection, not status," Sawhney adds. "When we tap into consumers' desire for meaningful experiences with loved ones, everyone wins. Cardholders build memories and connections, and financial institutions drive revenue and encourage long-term loyalty."
As the gap between material goods and experiences widens, banks and financial institutions have endless possibilities for contributing to the creation of priceless moments that genuinely resonate with customers.
This post was created by Mastercard with Insider Studios.
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