If you’re a business that typically depends on tax refunds for much of your 2Q sales, you may want to accelerate your marketing plans because consumers are filing online and getting their refunds sooner this year.
According to a new study out from BIGresearch for the National Retail Federation, Americans are filing their taxes earlier this year and trying to get their refunds back as quickly as possible. Of those expecting refunds, 71% have already filed. 2/3 of those who file are expecting refunds. About 11% of that group plans on making a major purchase such as a TV or car. (From CableSpots 3/9/09)
My guess is that consumers aren’t waiting for their refunds to figure out what to do when they get their money back from Uncle Sam either. April 15th has always been a target date when you see a lot of companies begin to promote their tax season sales. Things like car purchases and travel plans are often heavily promoted during this time, but consumers are making fewer impulse buys which means if you wait until April to start inviting people to spend their refunds with your business, you’ll miss the boat!
This is a great reason to start thinking about how you are branding your business. Are you the type of company that has a few targeted “buy here, buy now campaigns?” It may be a good time to rethink that strategy. Being
top of mind is more critical today than ever. When a consumer is thinking about what to do with that bit of savings they are going to get back, will they think of buying that thing you sell because of the work you have done promoting your product over the past few months?
My feeling on advertising and marketing is that most purchases are not impulsive these days. Longer term image is more important that catchy tactics. Even if an incentive pushes a buyer over the edge, a seed was planted long before that said to that person, “this is something you want to buy!” My experience tells me that when you spend the time and investment creating an image for your company and prove to the consumer that there is real value in what you do or sell, then they will come to you when they have the means to do so. Those of you who are doing it right may have already seen the benefit of consumers’ tax refunds this year. Even without the money in hand, people are willing to go ahead and make purchases on their credit cards knowing they’ll be able to pay it off as soon as that electronically filed money is deposited into their account. Those of you out there who have postponed your advertising plans this year hoping to catch up when things “turn around” may already be too late.
Have you and your company seen a difference in tax refund purchases already this year? Have you personally already filed your returns? What are your plans for your refund?
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If you’re a business that typically depends on tax refunds for much of your 2Q sales, you may want to accelerate your marketing plans because consumers are filing online and getting their refunds sooner this year.
