Retailers Targeting Tax Service Clients Who Plan to Spend Refunds
"Valassis, a leader in activating consumers through intelligent media delivery, today released new research analyzing consumer behavior related to tax season. Stemming from a survey of more than 1,000 U.S. respondents who expect to receive a tax refund in 2019, the findings note that more than half (53%) are anticipating receiving the same, or more, money this year."
"While a large portion of respondents, 53%, plan to save the majority of their refund, more than one in five (21%) are looking to spend all or most of it. Additionally, 63% expect to get more than $1,000. This presents an opportunity for retailers, as consumers will be armed with substantial 'extra' cash to allocate toward larger purchases. And, with holiday sales falling short of expectations in 2018, this provides a timely boon for retailers."
Now, that doesn't mean Tax Service Clients won't be thrifty with their money. According to AudienceSCAN, last month, 48.7% of these shoppers used the internet to find coupons or discount codes. Additionally, within the last six months, they've used a mobile device to redeem or download coupons, and they're 15% more likely than other adults to be driven to action after seeing ads on daily deals sites such as Groupon.
"Twenty percent of shoppers are unsure of how they’ll use their refund, representing another key target for marketers. Research from RetailMeNot shows that 67% of consumers have made unplanned purchases solely based on finding a coupon or discount for an item, meaning retailers can be opportunistic, encouraging impulse buying. Brands can identify potential new and existing consumers based on their active browsing and researching history, and from there, connect them with product offerings based on this demonstrated in-market behavior and purchase intent."
“'Tax season presents a unique opportunity for marketers to motivate consumers with high purchase intent, or those who are unsure how they’ll spend their refund and can be readily influenced,' said Curtis Tingle, Chief Marketing Officer, Valassis. 'Having extra cash on-hand can encourage consumers to spend more freely on experiences like dining out or high-consideration areas like home improvement projects. Retailers can capture a portion of this spend throughout tax season and beyond by placing relevant deals in front of consumers.'"
"In terms of where consumers most commonly plan to allocate their tax refunds this year:
- Home improvement or furnishings (15%);
- A vacation or experience such as dining out or a ticketed event (12%);
- Material items like apparel or electronics (7%); and
- A car purchase or automotive maintenance (6%)."
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.