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Being unique brings an element to a company's competitive advantage in and of itself. However, being so unique that a company lacks services or products that the majority of customers are seeking, actually hurts a company. Building a competitive advantage that differentiates one firm from another, while still hitting the mark in regards to customer needs is important. This includes offering products and services that solve customer problems. There needs to be a balance between company brand and differentiation, and following consumer trends. In the tax prep service industry, there are some clear features that more customers are seeking year after year.
Understanding consumer wants and needs provides valuable insight into the specific products and services that a tax prep firm should be offering. These insights can then assist a company in building a specific and unique portfolio of products and services to offer their clients. This portfolio, in turn, contributes both to the firm's competitive differentiation, while also providing clients with the services they need most.
5 Elements Consumers Look For From Their Tax Prep Service
While creating and maintaining a competitive advantage that includes a unique differentiator is a staple of building a successful business - it’s also important to note consumer driven trends and needs. Afterall, the customer is always right. In the tax prep service industry, there is a clear indication of what consumers are seeking. Some of these elements include:
Buy-Now, Pay-Later: Growing in popularity, the buy-now, pay-later formula is swiftly taking the tax prep service industry by storm. Allowing customers the ability to access tax prep services without requiring an upfront cost offers the client an incredible value. This value, fortunately, also extends to the tax firm that offers what’s known as refund transfers. Because refund transfers permit clients to pay for the tax prep services with a portion of the refund that they’re owed, it naturally increases the total consumer market a company is able to target with marketing efforts. Ultimately resulting in an increased consumer-base and a larger book of business.
Offering clients the option of a refund transfer also increases the chances for a positive referral, and encourages clients to file their taxes sooner rather than later.
Refund Advance Options: Many people want access to their money as soon as possible. Upon confirmation that a client is owed any refund at all, that client may feel entitled to those funds - and in some cases, will rely on that refund to cover monthly expenses. Refund advances are usually allowed up to 75% of the total refund, and often come with the employment of refund transfers, so that the tax prep services are covered as well.
Customers who opt for refund advances, want to know the terms of their refund advance upfront, and without any hidden fees. While many banks that offer refund-advances allow for $500 of an advance without any customer-penalty. However, customers seeking an advance beyond that amount are often penalized heavily.
Offering customers a plethora of options in regards to refund-advances, is sure to increase market-appeal, and lead to repeat business down the line. These services can also contribute to a stronger marketing strategy that is more broad and reaches a more versatile demographic. Benefiting both consumers looking to access their money immediately, and the firms that provide these services.
Audit Protection: Audit protection is one of the best services a tax-firm can offer their clients seeking tax prep services. As audit protection extends for the duration of the audit-window, and protects clients against IRS inquiries, audit protections offer a sense of security and trust to the firm’s client. This element of security is valuable to clients as they can rest assured that in the event of an IRS audit, they will have a dedicated tax-expert at their side ready to assist in a variety of ways.
This assistance comes in the form of IRS communication, clear instructions on compliance, and other guidance in audit proceedings. All in all, these services can save the client days, weeks, and even months of time that would otherwise be spent deciphering complicated and convoluted tax-jargon.
Excellent Customer Service: In any service industry, excellent customer service should be an absolute priority. Within the tax prep service industry, this is no different. Clients of tax-firms should feel like the weight and stress that comes with filing taxes is almost completely lifted. While this should be a no-brainer, it’s surprising how many companies ignore the importance of providing excellent customer service. What they may not realize, is the probability of negative customer reviews, and negative customer referrals when clients receive a negative customer experience.
The rate at which negative customer experiences can spread through a social network is breathtaking. History has shown how crippling negative reviews can be to a company's capability to grow - and can actually severely deteriorate a firm’s current book-of-business down to nothing.
Transparency: Regardless of the industry, customers have a higher expectation for company transparency than ever before. This expectation for clear and unmuddled communication extends beyond simple niceties and specifically applies to fees and cost. Especially in the tax prep service industry, customers want to have a full understanding of the costs associated with filing upfront, or as soon as it’s possible to determine.
Even further than service fees and costs, consumers want to know the back-end of company spending. Now more than ever, consumers are concerned with where their dollars end. Buyers want to support businesses they feel contribute to global causes, reinvest in local communities, and employ social responsibility through the full breadth of the company they patronize.
Refundo offers products that enable tax firms to offer their clients refund transfers, refund advances, and audit protection. These three tools will bolster any tax firms ability to provide consumers with the services they desire from tax prep companies. Paired with empowered management that encourages transparency and social responsibility, and prioritizes delivering excellent customer service, makes for a full-service tax firm, ready to meet the demands of a wide consumer market with a variety of needs and expectations.
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