The Treasury Department and IRS recently announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended to May 17, 2021. When consumers get their tax refunds, perhaps even a little delayed this year, many will want to save them for a rainy day. But a significant percentage will give in to the urge to splurge on that expensive indulgence, long-needed repair, home improvement project or big-ticket item. Here are six ways to keep your business top of mind and get in on some tax refund action:
1. Get on consumers’ radar ahead of time
Customers who expect to get tax refunds tend to file their taxes early so they can get their cash faster. And they’re already thinking about how they’re going to spend it from the moment they file. To keep your business front and center, post a question on Facebook asking people how they plan to use their refunds. Tease them with savings on something they’ve been itching to buy.
2. Offer some tax relief
Invite customers to make their returns last by slashing your prices during a special “Stretch Your Tax Dollars” sale. Or appeal to their financial concerns with a “Max Your Tax Refund” sale. If customers are still waiting for their refunds, encourage them to place sale items on layaway now to lock in the low prices.
3. Blog about it
Plant the seeds for that next purchase with timely blog posts. Remind customers that it’s a great time to invest in new furniture and much-needed home improvements. Keep your article educational or harness the power of persuasion. Here’s an excerpt from a wonderfully persuasive article posted by Texas Hot Tub Company:
“You’re holding onto a juicy tax return and hot tub season is right around the corner. You want to splurge on the newest 4K TV, which will be an obsolete relic in 18 months? Instead, why not ignite your inner scientist, control the forces of nature and create a self-perpetuating, self-cleansing ecosystem in your spa like a hydrotherapy god? Tax time is stressful. Hot tubs kill stress. Spend your money wisely.”
Now, who can argue with that?
4. Sweeten the deal with a bonus
If customers are ready to buy a big-ticket item, offering a bonus can be the reason they buy from your business instead of your competitor’s. For example, Courtesy Chevrolet in Phoenix offers a Tax Refund Special that provides matching funds if you put your tax refund towards a down payment on a new vehicle.
5. Soothe Taxed Nerves
Tax time is stressful, so reward customers for surviving it with a special promotion. Send customers an email inviting them to claim huge savings at your store. Or help them relax and unwind by emailing them a coupon they can apply toward a Tax Day tension-taming spa package. Whatever “tax break” you offer, be sure to start your tax season email marketing campaign now to capitalize on the season and get as much business as you can in the next two months.
6. Stay in their sights with print
Try a direct-mail postcard to promote big-ticket items that consumers may be contemplating, but not yet ready to purchase. Send early filers a postcard inviting them to a VIP savings event on the morning of Tax Day. People love being part of exclusive events, and a postcard can be placed on the fridge as a reminder so they don’t miss out.
Tax return time can mean a nice chunk of change for some consumers and big marketing opportunities for you. With so many ways to encourage customers to shop and support your business, there’s no excuse not to grab a piece of the pie.