With your SMS texting campaign, help consumers achieve their spending goals by focusing on savings, paying down debt and everyday expenses.
Tax filing season is in full swing, with nearly half of all consumers expected to have filed by the end of February. As refund distributions begin hitting bank accounts, help consumers achieve their financial objectives by creating an SMS campaign centered on this year’s planned spending projections.
59% of consumers are expecting a refund this year, and while it will not be a splurge fest for most, many have big plans for these funds. Let’s take a look at the top three categories to learn how businesses can educate consumers on the services, goods, and resources available for reaching their financial goals.
Top 3 Consumer Goals For Tax Refunds
1. 51% Plan To Save Part Their Refund
Most consumers plan to save at least part of their refunds this year. Savings has been the highest use for tax refunds for several years and increased from 43% last year to 51% this year. Most businesses, including financial institutions, retailers, and service providers, can benefit from this consumer trend, even if you are not offering savings vehicles.
Businesses and financial institutions can build retention and brand awareness with an SMS campaign that educates on savings best practices. Encourage consumers to explore savings plans and products unique to your business. Show how your products continue to put those funds to work by sharing testimonials and white papers specific to reaching savings goals.
Since not all savings goals are long-term, this can be a time to motivate customers to save for larger purchases, benefitting the client and business. Help customers plan for these large purchases through an SMS campaign that details how to set money aside for specific products and services.
While customers might not be looking to spend money at this time, they will be in the future. It’s not the time to slow down on your messaging and fall further into inboxes. Customers expect more from businesses today than sales pitches and products. Give your customers support beyond inventory and build your brand awareness with the laidback approach SMS provides. Investing in your customer’s well-being, education, and interest will strengthen their trust in your services and brand.
2. 33% Will Pay Down Debt With Part Of Their Refund
Paying down debt increased steadily, rising from 30% to 33% this year. If your SMS strategy includes collecting payments and servicing accounts, tax refund season is a great time to communicate with your customers. Bill payment reminders delivered through text messages improve responsiveness and positive interactions. 9 out of 10 consumers prefer to talk to businesses through SMS over voice calls because it is convenient and less invasive.
Utilizing Two-Way Texting gives your team the ability to communicate in real-time and provides the customer with a positive experience that leads to future business. Learn more about using Two-Way Texting for customer service.
3. 26% Have Plans To Cover Everyday Expenses
Everyday expenses can fluctuate after the holiday season. Many consumers use this lump sum refund to catch up in the day-to-day areas they fell behind in or set aside for known, upcoming expenses. Businesses offering everyday products or services can capitalize on this trend by building an SMS campaign that features promotions specific to meeting this need. Use previous purchase history and customer data to customize recommendations and personalized messaging.
US retail e-commerce sales will exceed 1 trillion dollars in 2022, making personalization imperative to standing out in the market. Simply adding your customer’s name to the message can let customers know they are valued. Learn more about SMS and e-commerce in our guide to m-commerce.
Other Consumer Goals
While savings, debt payments, and everyday expenses take a large portion of the refund pie, some consumers still want to have a little fun with their refunds. Vacations are on the rise after two years of back-and-forth with Covid-19 regulations—11% of those receiving a refund plan to spend some of it on vacation. Home improvement projects are at 11%, followed by major purchases and splurge items at 8%. (source)
An SMS campaign is a timely and efficient way to share splurge-worthy products, activities, and services. Since 95% of text messages are read and responded to within 3 minutes, it’s important to create interactive campaigns and give customers the extra support needed when making large purchases.
Applying refunds towards savings has been a consistent trend for a while now, but that doesn’t mean consumers are all work and no play. Understanding consumers’ financial goals will lead to long-term, mutually beneficial relationships. Provide solutions and recommendations for your customers’ financial objectives by implementing a personalized SMS plan. Need help creating a plan? Talk with OUR TEAM OF EXPERTS to build a customized plan that benefits you and your customers today.