New survey shows spending significantly impacted by pay cycles

Cleveland A survey released findings on Thursday that there are strong ties between consumer spending habits and their paycheck cycles.

The “2009 Payday Cycle Spending Survey,” conducted by WorkPlace Media, revealed that 64% of respondents said they stopped making major, not-bill-related purchases just six days after receiving their paycheck. 

The survey also found that 82% of consumers would be more likely to utilize an offer from their employer rather than one they received at home.

“This survey presents some rather stunning information for marketers and c-level decision-makers,” said 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 included:

• Seventy-eight percent 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: one to two days (41%), three to six days (23%), one week (13%), two weeks (2%), I continue to spend (21%);

• Eight-six percent said they would be more likely to purchase a product/service when receiving that offer on or near their payday; and

• 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 among 1,096 American workers and employers.