By Megan Allinson (Account Director)
Every year, around this time, millions of Americans begin thinking about getting their taxes done. Some even start to think about taxes in November and December of the prior year, right around the time of holiday spending.
At the same time that we’re starting to think about taxes, the large tax preparation players like H&R Block, TurboTax, Jackson Hewitt, and Liberty Tax are launching their annual campaigns hoping to win your business.
However, their campaigns and offers have likely been in the works since the end of the prior year’s tax season, maybe even earlier. Aside from brand image, message, and offer, tax preparers are also thinking deeply about how to target their two primary audiences:
- Those who get a refund (AKA “early filers”)
- And those who will owe (AKA “late season filers”)
In the work we’ve done with our tax clients, we often see that early season filers make up the greatest volume of their business, while the late season filers tend to have private accountants whom they return to year over year. Therefore, it makes sense that tax prep companies are focused on the offers that will drive in business from those likely getting a refund.
Heading into the early filing season, several competitive offers are shining through both from the “in-office” businesses and the “do-it-yourself” online filing businesses. Here’s what we’ve seen:
So how do these tax preparation service companies position and engage their target audience, aside from mass media buys, targeted digital buys, social media ads, and dramatic brand spots?
Whether it’s apparent or not, each tax prep company is using behavioral science in their marketing to persuade and attract customers. (Tweet this.)
Here are a few principles being used this tax season to win your business:
Social Proof is the idea that if others similar to you are doing something, you’re more likely to try (or like) something as well. TurboTax uses Social Proof on their website to attract people who are on the fence about doing their own taxes. Just knowing that others are doing taxes on their own can also help nudge them to give it a try. This gets site visitors saying, “If he/she can do it, so can I”.
Not only does their site speak to how many are using their service, but they also highlight the customer rating and include easy-to-access testimonials that you can scroll through. Social Proof is truly leveraged through the testimonials, as you’re likely to find someone you can relate through just by reading a few.
Cognitive Fluency is the behavioral science principle that states we’re more likely to take action or agree to doing something when the message or task is simple to comprehend. TurboTax leverages this principle to promote their “talk to an expert” feature, demonstrating how easy it is to ask tax-related questions and get immediate answers. Head over here or click the image below to check out their spot:
The Contrast Principle is the idea of comparing a product or service against more expensive items to show how affordable that product or service is. H&R Block uses it to promote their “More Zero” offer on social media. Here, they “contrast” the cost of doing your taxes against owning a car or raising a kid, in order to show that doing your taxes shouldn’t be expensive.
H&R Block also uses Eye Magnet Words in their TV spots. While you may not see the word “now”, you certainly hear it — repeatedly. Eye Magnet Words are those that have stopping power and catch the ear or the eye. In this spot, H&R Block uses “Now” to grab you attention in very relevant ways… When you’re hungry you want to eat, when you have an itch you scratch it, when you’re owed money you want it NOW.
Take a look at their ad below NOW…
(Full disclosure: H&R Block is a client of Wilde Agency.)
Another principle that is used during tax season is “Labeling”. Labeling is exactly what it sounds like — you’re defining someone or something by giving it a label or name. For example, “you’re a trendsetter” or “you’re hard working”. From a human behavior perspective, we label people, because they then often adjust their behaviors to conform to the label.
For example, if I consider myself to be hard working, then I’m probably more likely to associate or relate to brands, product, or services which are positioned as hard working. And that’s exactly what Jackson Hewitt is doing with their Facebook branding and tag: “Working hard for the hardest working.SM”
These are just a few of the known behavioral science principles that are being used this tax season to motivate action and hopefully win your business.
To learn about the behavioral science of tax season or additional techniques you can use in your marketing, contact John Sisson, President of Wilde Agency at 781-251-2745 or john.sisson@wildeagency.com.
The post The Behavioral Science of Tax Season: How The Major Tax Prep Players Win Your Business appeared first on Wilde Agency.
