As spring arrives, so does the much-anticipated season of tax rebates. It’s a time when businesses can take advantage of incentives and benefits provided by the government to help spur economic growth. This year, many companies are rolling out promotions for their customers to benefit from these seasonal windfalls.
Tax day is April 15th. That’s the deadline for filing personal and business taxes, as well as making any payments due to the IRS. It’s important to remember that refunds may take up to 8 weeks or longer to be processed, so plan accordingly if you’re expecting a refund – or need more time to make a payment.
A tax refund is a refund of an overpayment of taxes that you paid during the year. It’s usually calculated by subtracting the amount you owe from the total taxes withheld from your paycheck throughout the year. Typically, around 75% of Americans will receive a tax refund. The average amount of the tax refund will vary from state to state, but the nationwide average tax refund is around $3,000.
Statistics show that most people don’t save their tax refund. Instead, they invest it back into the economy – often in discretionary spending categories like retail and entertainment. This season offers a great opportunity to reach out to shoppers who are looking to maximize their refunds by offering special promotions or discounts on products or services related to what they’re planning to buy.
With 3 out of 4 taxpayers receiving a refund, many of your current and potential customers likely have a refund they are ready to spend.
Many businesses offer promotions and discounts to encourage customers to spend their tax refunds this season. This can be an excellent opportunity for companies to boost sales and increase customer loyalty. Some popular promotions include cashback rewards, free shipping or upgrades on purchases, special deals on products and services, or bonuses for using a specific credit card.
This is a great time to use cross-selling or upselling strategies or to offer product or service bundles to provide customers with what they need while drawing them in with an attractive discounted bundle.
To get the most out of your tax refund promotion, you need to plan ahead. Create a budget and decide which products or services you want to promote, when you’ll start running the promotion, and how long it will last. If you’re offering discounts, make sure they are attractive enough to draw customers in but not so steep that they’ll damage your bottom line.
You should also create a marketing strategy to promote the sale. Consider creating social media campaigns, email blasts, or other targeted marketing initiatives to get the word out and drive customers in-store or online. Once you’ve set up your promotion, don’t forget to track the sales and results so you can make adjustments if needed.
Tax season is the perfect time to take advantage of promotional activities and spur business growth. By offering customers incentives to spend their tax rebates, businesses can foster customer loyalty and increase sales. With a great plan, businesses will have no problem making the most of this opportunity this spring!
At Higher Images, we have the digital and traditional marketing tools you need to make your tax day promotion a success. Contact us today to learn more!