CLEVELAND, OH —In the popular HBO series “The Wire,” detective Lester Freamon constantly urges his fellow detectives to, “follow the money!” But in today’s economy, this advice could be even more applicable for profit-seeking companies. A new survey released today, 2009 Payday Cycle Spending Survey, shows several powerful correlations between consumer spending habits and their paycheck cycles.
In the study, a shocking 64% of respondents said they stopped making major, not-bill-related purchases a mere 6 days after receiving their paycheck. For companies, this suggests that the window in which they can reach the consumer and lead them to purchase is remarkably slim. Furthermore, the survey showed that companies would be much more successful by reaching consumers at their place of employment. By a stunning margin of 82% to 18%, consumers said they would be more likely to utilize an offer from their employer rather than one they received at home.
Consumers’ increased willingness to consider offers at their place of employment is complemented by another survey finding which shows that 85% of employers would agree to deliver special offerings to their employees on payday.
“This survey presents some rather stunning information for marketers and C-level decision makers,” says Stephanie Molnar, CEO of WorkPlace Media, a marketing solutions firm that specializes in targeting people in their cubicles. “The at-work demographic has always been attractive to marketers because they are reaching people with money to spend. But going a step beyond just targeting this demographic, and actually reaching these valued consumers at the point in time when they are most likely to spend? That’s powerful information for any company.”
Additional findings from the survey:
- 78% said they spend more money on items that are not related to bills on, or just after, their payday
- Asked, “How quickly after your payday do you stop spending money on items not related to bills,” people responded: 1-2 days (41%), 3-6 days (23%), 1 week (13%), 2 weeks (2%), I continue to spend (21%)
- 86% said they would be more likely to purchase a product/service when receiving that offer on or near their payday
- When employers were asked how they distribute employee paychecks/direct deposit stubs, employers responded: by hand (66%), by inner-office mail (18%), or by postal service (16%)
The 2009 Payday Cycle Spending Survey was conducted by WorkPlace Media in April 2009 among 1,096 American workers and employers. For more information and complimentary research and charts, visit www.workplacemedia.com and click on “Complimentary Research.”
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