Why Demographics Only Tell Half the Consumer Digital Adoption Story

Focusing on just the youngest digital-native generations or only high-earners when describing the connected-tech consumer misses the big picture when it comes to this demographic within a demographic. The connected-tech consumer owns an average of seven to eight connected devices. These may include computers, smartphones, tablets, smart TVs, gaming consoles, smart home technologies and activity trackers. Sometimes also termed “high-tech consumers” or “tech enthusiasts,” this persona reaching across traditional demographics may be best illustrated through the PYMNTS collaboration with PayPal, “Super Apps for the Super Connected.”

Despite the stereotypes, a relatively smaller share of Gen Z, 13%, fits the persona. This is exceeded by the 18% of millennials who are connected-tech and even Gen X’s at 15%. This generational gap may be surprising until considering the recent trend of “dumb phones” among Gen Z.

Who is this connected-tech consumer? What makes them tick? A look into some of PYMNTS’ past research may offer some clues. As this chart demonstrates, a connected-tech consumer is generally driven by convenience, which includes seamless device switching, and defies usual stereotypes, such as the youngest age cohorts being the most tech-savvy.

Instead, the most connected demographic is the millennial generation, which is simultaneously the most connected and most likely to opt for device consolidation when possible, for example, with a super app.

Connected-tech customers flock to restaurants offering online innovations. Seventy-one percent of these high-frequency tech enthusiasts say the quick-service restaurants they frequent offer the ability to pay with their own devices. Another 72% of connected-tech consumers patronizing table-service restaurants say the establishments they visit provide the ability to pay at the table.

Similar tech usage is seen in healthcare.

When it comes to healthcare-related activities, 82% of surveyed connected-tech consumers engage in a mix of both digital and in-person healthcare-related activities, compared to 46% of mainstream-tech consumers. Connected-tech consumers engaged equally with digital-only and in-person-only healthcare activities, at 3.4% and 3%, respectively.

Given their inherently digital-friendly traits, it is perhaps unsurprising that 59% of connected-tech consumers are very or extremely interested in replacing their scattered passwords and stored information with convenient technologies like a credentials vault. This interest represents a double-digit lead over mainstream-tech and basic-tech consumers who said the same, both at 37%.

Connected-tech consumers don’t fall under any one neat traditional demographic. However, it is the very fact that this persona applies across typical demographic profiles that may define the connected-tech consumer instead. Companies and other organizations trying to attract the persona may do well in concentrating on “how digital” they are. Instead of age or financial lifestyle demographics, the connected-tech consumer may be better defined by their digital appetite and ownership of connected devices bringing digital into their worlds.