publication date: May 14, 2011
Blogger Roger Dooley
) notes a recent comment by Walmart
CEO Mike Duke
the connection between the paydays of less wealthy consumers and their buying
cycles. The typical Walmart shopper, Duke says, is paid at the beginning of the
month and stocks up on goods then, spending much less at Walmart by the end of
the month. He blames rising gas prices for accelerating the trend.
believes the Walmart experience holds a lesson for direct mail, email and Web
offers aimed at lower-income demographics. "Even consumers who make such
purchases with a credit card or who may not be totally out of cash may respond
at a lower rate if they feel less affluent late in their pay cycle," he
customers are less vulnerable to the payday factor. Even when they're under
financial stress, their access to lines of credit and a larger number of credit
cards with more generous limits mitigates the effect of receiving all their
current income on one day per month.
Know your donors, community
this mean for fundraising? First of all, it means knowing your donors and your
community. If you're in a smaller community dependent on a single employer or
industry, be aware of the pay schedule. Time your appeals, deploy your
door-to-door canvassers and launch membership renewal efforts with pay dates in
mind. It's common sense that a person with spare cash will feel more able to
give than someone with little left over after paying for the month's
Better living at first of month
of Utah marketing professors Himanshu
and Arul Mishra
uncovered another trend in favour of payday-sensitive fundraising. Consumers
who've just been paid are more likely to spend money on goods that the Mishras
describe as "promotion-focused" - products that make their lives better. Later
in the month, they shift to "prevention-focused" items that preserve their
current standard or way of living.
that people feel good when they do good things such as supporting worthwhile
causes. When we create appeals and newsletters that make people feel good about
what their gifts can do or have done, the Mishras' marketing research might
imply that the best time to send those communications is, again, right after
Make it work with email
"Of course," Dooley
concludes, "there are practical issues in acting on this advice. Not everyone
is on the same pay cycle, and it seems that more affluent consumers who don't
live from paycheck to paycheck would be less influenced by payday issues.
Still, this work presents some interesting possibilities."
Email marketing may be part
of the solution, with data segmentation by likely pay date. Is anyone testing or doing
this, especially in a single-industry community? Share your comments below.
Read the original articles at http://www.neurosciencemarketing.com/blog/articles/walmart-payday.htm; http://www.neurosciencemarketing.com/blog/articles/when-are-consumers-most-receptive.htm