Home Is Where the Heart and the Connected Consumer Is

Consumers’ move towards living more digitally connected lives continues to grow, with participation in the ConnectedEconomy experiencing an 8% year-over-year rise as of April. This surge in engagement has overtaken any stagnancy in the last months of 2022, as illustrated in the below chart created for PYMNTS’ May “ConnectedEconomy Monthly Report.” The greatest rise occurred between December and January, where the average participation increase was enough to shift the three-month moving average back on an upward trajectory — even during a slight dropoff from February to March.

Per PYMNTS’ May ConnectedEconomy report, this 8% year-over-year growth in average consumer participation in digital activities was led by 14% growth during the same period for what are researchers call the Home or Live pillar — the category of connected activities that occur around the home. In PYMNTS’ research, this pillar includes a wide range of home-based activities, including personal and related eCommerce purchases, in-home voice assistants, digital climate controls and home security apps.

Baby boomers and seniors increased their year-over-year participation in the fast-growing pillar most with a 22% rise, as reflected in the below chart prepared for the report. The age cohort’s 9% overall increased average participation outpaced millennials’ 7% average growth in digital activities and stands well above Generation Z’s negative engagement rate.

Why baby boomers and seniors? Of course, part of this increased participation rate may be due to the cohort’s previous lower engagement — and thus, a further way to go to become as digitally connected as younger consumers. However, additional PYMNTS research noted that they are catching up in other digital activities, such as increasing their use of digital health platforms and online shopping.

Another reason for baby boomers and seniors’ driving growth in home-related activities could be due to their increased adoption of remote work. The second pillar in average participation growth was Work, which experienced a 9% year-over-year increase in consumers participating in gig platforms or using work platforms while not in a traditional office setting. The generation with the greatest change in average year-over-year participation for the work pillar was baby boomers and seniors.

While younger demographics may have already adopted much digital technology, it would be a mistake to assume older consumers won’t come around to using these tools as well. Far from counting this cohort out, baby boomers and seniors may be well primed to lead continued growth in the ConnectedEconomy.