Sixty-One Percent of U.S. Consumers Account for 90 Percent of All Connected
Product Sales; 39 Percent Have Little or No Engagement with a Connected Life
LAS VEGAS, Jan. 7, 2019 –- The number of U.S. consumers considered to be the most technically savvy has grown in the last three years, yet those who are least interested in being connected continue to comprise 39 percent of the population, according to a new study by Assurant, Inc. (NYSE:AIZ).
Assurant’s “The Connected Now” study, a follow-on to the company’s 2017 “The Connected Future” report, shows that there is great consideration among U.S. consumers to buy connected products. Indeed, 97 percent of respondents said they might make a first-time purchase of at least one connected product in 2019, and 69 percent believe connected technologies make life better.
The report also shows that 61 percent of consumers account for 90 percent of all connected product sales, each owning an average of nearly nine connected devices. This group is migrating steadily to a more connected lifestyle evidenced by a 41 percent net increase in the share of those considered technophiles – for this study, people who own an average of 16 connected products - since 2016.
However, adoption of a fuller connected lifestyle continues to lag overall. In 16 of the top 20 connected product categories, many more consumers considered making a purchase last year than actually bought. The percentage of consumers deemed to be technophobes - for this study, those owning an average of just 1.3 connected devices - has held steady at 39 percent over the same period.
Part of this adoption gap may be due to the fact that 78 percent of consumers cite major frustrations with the connected products they own. At the same time, Assurant’s study reveals 73 percent of potential buyers are more likely to follow through on a purchase if the connected products came with value-added services including on-demand tech support and extended protection. This is up from 61 percent three years ago.
“While many consumers are becoming more tech-savvy, there remains a hesitation to buy,” said Assurant CEO, Alan Colberg. “We are focused on bundling and delivering technical support and extended protection with products that will enhance consumer’s intent to purchase and further embrace a more connected lifestyle.”
“Understandably, technophiles are the least likely to be frustrated by connected products and are the most habitual buyers of value-added services,” said Keith Demmings, president of Global Lifestyle for Assurant. “It’s clear that helping other consumers better understand the benefits of a connected lifestyle, together with making support and protection more easily available will broaden the market opportunity overall.”
Assurant’s latest survey polled more than 1,200 adult consumers in the U.S. who – at a minimum – own a smartphone and have a wireless service. Full results can be viewed here.
Assurant, Inc. (NYSE: AIZ) is a global provider of risk management solutions, protecting where consumers live and the goods they buy. A Fortune 500 company, Assurant focuses on the housing and lifestyle markets, and is among the market leaders in mobile device protection and related services; extended service contracts; vehicle protection products; pre-funded funeral insurance; renters insurance; and lender-placed homeowners insurance. Assurant has a market presence in 21 countries, while its Assurant Foundation works to support and improve communities. Learn more at assurant.com or on Twitter @AssurantNews.
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