April 15, 2015
Retailers want your refund
It’s April 15 and that means Uncle Sam isn’t the only one who wants your money. No, pretty much every retailer and restaurant across the land has some kind of pitch intended to use tax day (better yet, tax refund day) as a means to get you to spend your money with them.
Heck, if you are a TurboTax user, you’re getting a retail pitch before you even e-file your taxes. The tax preparation software company and Amazon.com have worked out a deal whereby the e-tailer will add five percent (if you use the Basic or online package) or 10 percent (for all other versions) to any $100 you get in your federal refund. The bonus is added to a gift card to be used on the site.
Many others, as numerous reports have pointed out, offer freebies to get you into stores and restaurants. Restaurants, in particular, have taken April 15 as a day to drive traffic with special offers.
According to Bloomberg, customers who shop at participating Whole Foods will receive a free drip coffee this morning. Some of the chain’s stores are running a "Tax Day Giveaway" while supplies of an unspecified item last.
Another report, this from USA Today, says customers can walk into select Hard Rock Café locations today and get a free "Local Legendary Burger." All they need to do to earn their prize is get on stage and belt out a karaoke tune between 5:00 and 7:00 p.m local time.
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Recent Discussions
Discussion Questions
Has tax day become a more important day in the minds of consumers and merchants? What are the keys to a successful tax day/refund marketing strategy for retailers?
Poll
Having devised strategies (or more accurately, tactics) to lure tax refund check holders through the doors of a supermarket, my perspective is that these ploys can be very tricky. I recall during the Economic Stimulus Act of 2008, when millions of shoppers received checks, the stakes got very high as many retailers offered very lucrative incentives to lure shoppers into their stores, only to lose those shoppers after the promotion.
First and foremost, tax day discounts are the epitome of a one-off promotion. I have always been an advocate of spending the scarce commodity of mark down expense on shoppers and customers that I have an opportunity to have an ongoing relationship with. To that end, including tax day discounts into a more comprehensive and ongoing incentive package for shoppers might make better sense than to create a standalone promotion that likely will not pay out long-term.
Finding occasions to link and connect with consumers is important. Tax day is a significant event so linking with it has possibilities. How does it make people feel? Like they have free money? Like they are worse off if they have to pay? Like they have money to pay down bills? Like they have free money with which they can play? Not all consumers are created the same, thus one strategy may not be successful for all. If consumers still perceive Whole Foods as “Whole Paycheck,” and if they still go there on tax day, they are likely to appreciate the free coffee. However, that would probably not be enough to lure them in if they owe a lot of money.
I think it is always in the forefront of most people’s minds, but it has become commercialized.
I think the key is to appeal to what people are already feeling—angry, stressed and poor—by offering antidotes, not just price reductions. “Feel-good” marketing may be the key here.
Too many of these ads seem to be saying, “Hey, paid to much in taxes and gotten a smidgen back? Let us take that paltry amount of money off your hands! SUCKER!”
Not really a compelling value proposition.
Waiting for the crowd to react to an event or social issue is a the way to make a company subject to the economy. We should all know by now that this is a formula for disaster. Retail is in need of an overhauled market perspective and approach if is is going to be immune from government and bank failures.
Today’s retailer is not shackled by how far qualified customers are willing to travel for product and services. These limitations are removed and the world is waiting to hear from us with a message of value that they can understand and identify with. The companies willing to get on board are only limited by what they know about these latest opportunities and how to gain from their proper use of present day technologies.
Dynamic personalities with an entrenched financial support is the CEO for the 20th Century. What is needed for the 21st Century and beyond is a person that can effectively identify global opportunities and position the company as the most desired solution to any market’s inclination for success and gain. Change is better than ever for everyone.
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Having devised strategies (or more accurately, tactics) to lure tax refund check holders through the doors of a supermarket, my perspective is that these ploys can be very tricky. I recall during the Economic Stimulus Act of 2008, when millions of shoppers received checks, the stakes got very high as many retailers offered very lucrative incentives to lure shoppers into their stores, only to lose those shoppers after the promotion.
First and foremost, tax day discounts are the epitome of a one-off promotion. I have always been an advocate of spending the scarce commodity of mark down expense on shoppers and customers that I have an opportunity to have an ongoing relationship with. To that end, including tax day discounts into a more comprehensive and ongoing incentive package for shoppers might make better sense than to create a standalone promotion that likely will not pay out long-term.
Finding occasions to link and connect with consumers is important. Tax day is a significant event so linking with it has possibilities. How does it make people feel? Like they have free money? Like they are worse off if they have to pay? Like they have money to pay down bills? Like they have free money with which they can play? Not all consumers are created the same, thus one strategy may not be successful for all. If consumers still perceive Whole Foods as “Whole Paycheck,” and if they still go there on tax day, they are likely to appreciate the free coffee. However, that would probably not be enough to lure them in if they owe a lot of money.
I think it is always in the forefront of most people’s minds, but it has become commercialized.
I think the key is to appeal to what people are already feeling—angry, stressed and poor—by offering antidotes, not just price reductions. “Feel-good” marketing may be the key here.
Too many of these ads seem to be saying, “Hey, paid to much in taxes and gotten a smidgen back? Let us take that paltry amount of money off your hands! SUCKER!”
Not really a compelling value proposition.
Waiting for the crowd to react to an event or social issue is a the way to make a company subject to the economy. We should all know by now that this is a formula for disaster. Retail is in need of an overhauled market perspective and approach if is is going to be immune from government and bank failures.
Today’s retailer is not shackled by how far qualified customers are willing to travel for product and services. These limitations are removed and the world is waiting to hear from us with a message of value that they can understand and identify with. The companies willing to get on board are only limited by what they know about these latest opportunities and how to gain from their proper use of present day technologies.
Dynamic personalities with an entrenched financial support is the CEO for the 20th Century. What is needed for the 21st Century and beyond is a person that can effectively identify global opportunities and position the company as the most desired solution to any market’s inclination for success and gain. Change is better than ever for everyone.