BitBounce Survey Shows Americans Will Spend Tax Refunds on Vacations, Fashion and Consumer Electronics
While Dollar Amounts are Expected to be Lower Than Usual, Timing is Right for Marketers to Capitalize Through Smart Promotions
As the deadline for filing taxes for 2018 rapidly approaches, spam filtering solution provider, BitBounce, issued a survey to discover how Americans across the nation plan to spend their tax refund and the marketing incentives that will get them to open their wallets.
According to the dataset, the majority of millennial and Gen Xer respondents are on the same page, with one-third of each group reporting that they intend to make a new apparel purchase. Similarly, one out of five from each group are planning on buying new consumer electronics, including video games and consoles.
While their younger counterparts are interested in material goods, baby boomers conversely expressed a desire for experiences, with nearly one-half of respondents 55 and up planning to spend their tax refunds on a vacation. This could be a prime opportunity for travel companies looking to market spring getaways.
“Based on the findings of our latest consumer survey, apparel, hospitality and consumer electronics companies have a tremendous opportunity for sales in the coming months,” said Marty Bauer, VP Sales and Business Development at BitBounce. “However, with all the reports of lower-than-expected tax refunds this year, competition for those dollars will be fierce, so marketers must intelligently deploy discounts and other promotions to capture the spend.”
According to the survey, how companies approach this should start with a deep dive into the brand’s target consumer. For marketers looking to attract male buyers, promotions that offer a buy one get one free (BOGO) offer have the greatest appeal across all age groups. Almost one-third of all men listed BOGO as the promotion most likely to inspire a purchase. After BOGO, men want discount codes (25 percent) and free shipping (22 percent).
Brands that are looking to reach women need to get more specific in terms of the age group they want to target, as female’s preferences differ slightly by generation. Unlike their male counterparts, millennial women do not care much for BOGO and are far more motivated to purchase by discount codes (around one-third said it is their first choice). Female Gen Xers and baby boomers, however, reported preferences similar to the men and list BOGO as the incentive most likely to inspire a purchase. There are slight differences in the number two and three choices for each: discount codes edged out free shipping offers for Gen Xers while free shipping was named number two for boomers, with discount codes coming in at a distant third.
As marketers plan their digital and email promotions this tax season, and throughout the year, it should be noted that hitting a customer’s spam or junk folder is the kiss of death. According to the survey, nearly half of millennials reported never checking their spam folder. Furthermore, two-thirds of Gen Xers say they check less than once a day and nearly 60 percent of boomers check less than once a day.
“As our survey data shows, promotions that end up in spam folders largely go unseen and have a very low likelihood of converting into a purchase. Considering this, and the ever-increasing competition for consumers’ attention, it is more important than ever to make sure your promotions and interactions are targeted, creative and customized so they are set up for success,” added Bauer.
BitBounce empowers consumers to take back control of their time, attention and data. The company offers an email paywall that blocks spam and lets users charge businesses to receive marketing emails. BitBounce has processed over one billion emails to date and works seamlessly with every major email provider.
For marketers, salespeople, and other senders of commercial email, the company offers BitBounce Ads, a digital advertising solution which facilitates highly-targeted paid email marketing campaigns to its member base of over four million users worldwide.
The company has raised over $11.9 M in funding to date, from investors including Tim Draper and Reid Dennis.