By Jessica Duncan
It’s tax season. A time when tax preparation companies ramp up marketing efforts to ensure they keep the busy season true to its name. This is also a time when promotional offers and partnerships emerge, designed to result in lead generation or loyalty wins for both parties. Historically, the marketing strategies often included a discounted pricing offer sent by a banking partner or investment firm for customers to use their promoted tax program. While discount campaigns still largely exist, some companies are approaching tax season as another opportunity to generate deeper and more dynamic engagement, anticipating that the efforts could have a stronger impact on brand loyalty or desired customer behaviors. In this article we will look at some of the trends. Additionally, you will see how H&R Block capitalized on the concentrated consumer attention this time of year to announce an evolution of their services.
Discounts & Incentives
To start, extending a discount on a tax preparation service to customers is quite common. Typically the promotional offer is for one specific partner or brand. However, there are examples where customers are given the option to choose a pricing discount for different programs, like the Fidelity Investment email which extended discounts on H&R Block and TurboTax. A unique variation to the discount concept was shown by Acorns. If a customer files using TurboTax Deluxe, Premier, or Self-Employed Editions, they will earn 8% of the purchase price invested into their Acorns Invest account. Chime is a strong believer of sweepstake campaigns and true to fashion launched a chance to win $2,021 for customers who set up direct deposit of their federal tax refund of $200 or more to their Chime account. Each approach, though uniquely different, has one common thread which is the intention of building stronger brand recognition through seasonal perks and positive customer experiences.
Refund Options
For those getting a refund, the speed in which the funds are received is a top priority. Therefore, financial service providers often focus on providing the ability for customers to get their refund faster. Competiscan observed claims by companies like Current and Chime that refunds could be available up to 5 days faster when direct deposit was selected as the return method. Credit Karma promoted a feature called Refund Advance. Customers that apply can receive a no fee, zero-interest advance of up to $4,000 in their Credit Karma Money Spend account, delivered on the same day their tax return is accepted by the IRS.
Convenience
Promoting convenience during tax season appears through a variety of tactics and strategies. Stash promoted the ability to automatically import Stash tax documents directly to TurboTax, making tax filing simple and easy. U.S. Bank raised attention to how the mobile app could help take on tax season. They encouraged customers to turn to their mobile app as a quick way to access documents. Also, suggesting to use the app’s Smart Assistant voice feature to find account and routing numbers by simply asking. In the email’s closing U.S. Bank reminded customers that their Tax Resource Center is available year-round for ongoing resources, tips, tools, and tax assistance. Credit Karma was seen appealing to the consumer’s curiosity by promoting their Refund Estimator as an easy way to get a sneak peek at their potential tax refund.
Captive Audience to Cross-Sell
Lastly, in December we saw H&R Block use their filing season emails to tease about the coming of Spruce mobile banking in early 2022. The tagline is “Get better with money” and the primary selling points include no monthly fees, personalized savings goals, cash back deals, and access to your paycheck up to 2 days early with direct deposit. The website also states a $20 bonus for new Spruce customers that establish direct deposit. We have observed H&R Block continue to include the new product placement below the fold on tax-related emails. Then, through a well-designed follow-up campaign, H&R Block led with a primary cross-sell message to customers who had completed their tax filing, an opportune time to unveil additional services to a captive audience. This approach was observed in a similar strategy last year when Credit Karma rolled out Credit Karma Money with TurboTax integration. While striving to offer a competitive mobile banking platform is on the minds of many organizations, we may not have expected it to be the new product introduced by H&R Block. But then again this is how the future of financial services is unfolding. With technology and the proper management of customer data, brands across a variety of sectors are developing a wider range of services to offer to their loyalists, and H&R Block was simply the latest to cross over.
For more information on marketing trends, Competiscan clients can view our archive of reports and insights at www.competiscan.com.
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