Tax season is in full swing, and consumers are already making plans, including planning tax refund purchases. Many will use their tax refund to make a major purchase, home improvement, or vacation. Businesses who act quickly to target and engage these consumers can acquire new customers.

The Majority of Filing is Happening Now

79% of consumers plan to file their taxes in February or March, with only 21% waiting until April, according to the latest update from the National Retail Federation (NRF). 58% of tax filers expect to receive a refund.¹

Consumer Expectations for 2024 Tax Returns:

Source: NRF’s 2024 Tax Return Study, Conducted by Prosper Insights & Analytics

In the rural markets Mspark serves, nearly 60% expect to receive their refund by the end of March.²

76% of consumers in rural markets expect their refund to be the same or more as the previous year; that number climbs to more than 80% in urban counties.²

While the majority of consumers plan to pay down debt or add to their savings with their tax refunds, or apply it to everyday expenses, a significant percentage plan to spend it:² What type of tax refund purchases are they planning?

• on home improvements (12%)
• a “splurge” purchase (11%)
• a major purchase (10%)
• a vacation (10%)

Now is the time to target and engage these consumers as they plan tax refund purchases.

Identify Your Most Valuable Target Consumer

Accurately identifying your target consumer is the foundation of an effective marketing campaign. Through data analysis and targeting, Mspark can identify your highest-value potential customers in your target market. Our team pulls data from a wide range of sources and translates it into easy-to-understand information that reveals the best audience for your message.

Increase Reach & Response by Coordinating Print + Digital Ads

Once your target audience is identified, we design a custom advertising campaign to target them with the most effective print and digital media to drive response.

• Marketing mail remains highly persuasive — Over half of recipients have tried a new product, service, or establishment in the past 6 months after receiving marketing mail.³

• Personalized offers increase response. 68% of recipients are more likely to engage with an offer or message that is personalized to them.⁴
• Drive website visits with mail. Consumers frequently/occasionally go online after receiving mail advertising from a brand, including 67% of Gen Z, 58% of Millennials, 54% of Gen X, and 37% of Boomers.³
• Adding a mail piece to your marketing mix can increase website traffic as much as 50% overall.⁵
• Increase store traffic with direct mail: 51% of consumers bring marketing mail into retail locations.³
• Revenue can increase up to 23% with consistent brand delivery across platforms.⁶
• Digital advertising + mail can increase response rates up to 450% and increase conversion rates up to 28%.⁷
  • 76% of consumers find new products via targeted digital ads, which can target consumers based on their online activity, defined geographic locations, or demographic data.⁸
  • 91% of consumers want to see more online video content from brands.⁹ With more than 95% of all U.S. households paying for one or more streaming services¹⁰, OTT/CTV advertising enables your message to reach these streaming consumers cost-effectively.

Learn more about working with Mspark. Click “get started” below to connect with an expert to discuss your marketing goals.

Sources: NRF’s 2024 Tax Return Study, Conducted by Prosper Insights & Analytics¹; Prosper Insights & Analytics February 2024²; USPS Mail Moments 2023³; LOB State of Direct Mail Consumer Insights 2023⁴; Direct Mail Research: 2023 Direct Mail Marketing Benchmark Report, SeQuel Response (sequeldm.com)⁵; 3 Reasons Why Brand Consistency Should Be Top Priority advertisingweek.com, 2022⁶; US Modern Postcard, Direct Mail Statistics 2023⁷; Targeted Advertising Statistics and Trends in 2023, GITNUX⁸; 52 Visual Content Marketing Statistics You Should Know in 2023, hubspot.com⁹; Saturation drives US streaming services to prioritize value for subscriber retention, kantar.com, January 2024¹⁰