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Refund transfers are a specific payment method that is unique to the tax service industry. Simply stated, refund transfers occur when an individual's tax refund is confirmed, and they select to use a portion of that refund to pay for the tax preparation services rendered.
There is an abundance of appeal to selecting tax refund transfers as a payment method. The most obvious benefits are consumer facing, but prioritizing customer experience and customer benefit will in turn generate more business, repeat customers, and one of the oldest and most powerful marketing tactics there is: word-of-mouth.
Customer Benefits that Drive Appeal of Refund Transfers
Customers reap a variety of benefits from selecting refund transfers as their payment method, as highlighted in Refundo’s article on implementing refund transfers, and two of the main factors driving appeal and contributing to refund transfers as a growing trend are:
Convenience:
There really is no other payment method that’s as convenient as refund transfers when it comes to tax-prep fees. This is because there are no additional steps added to the process for the client filing, or the tax professional conducting the work. As the refund gets distributed from the IRS, it first passes to a specialized bank responsible for deducting fees, and distributing the proper portions of the refund to parties owed. Normally, this includes the firm or tax-professional, and the individual filing.
There can be some additional fees included with tax refund transfer processing, however most people view these as a nominal cost in comparison to the convenience offered by tax refund transfers.
Lack of Upfront Cost:
Speaking of cost, one of the most influential factors in any industry: lack of an upfront cost is another point of appeal to customers filing taxes through tax professionals and selecting refund transfers.
Without an upfront cost, customers feel prioritized and like they may have gotten away with something, and while the tax professional benefits from a guaranteed payment; both parties walk away happy. However, the transaction doesn’t end there.
Leaving customers with an outstanding experience increases repeat business and loyalty in customers, which in turn will amplify referral rates, and generate additional business.
The Tax Pros Appeal
The customer isn’t the only beneficiary of a tax-refund transfer. Tax professionals and firms also benefit from this payment method on multiple levels, making tax refund transfer processing platforms more than a worthwhile investment.
Guaranteed Payments:
Tax professionals want to focus on taxes; not collection efforts. Implementing tax refund transfers as a payment method for individuals due a refund is a simple solution to guaranteeing payment as the tax professional.
Since the refund will be automatically divided and distributed appropriately by the specialized bank; there’s no chance for customers to ditch the bill, and tax professionals can rest assured they will receive the fees due for tax services rendered.
Reputation and Branding:
The more reputable a company becomes, the more organic traffic and organic business will be generated. This is because customers, more than ever, want to choose brands that they can trust, brands that employ transparency, and brands that prioritize the customer experience over the bottom line.
Immersed in information, consumers have access to reviews and ratings at their fingertips with smartphones and other smart devices. Offering refund transfers is a simple step that simplifies the tax-prep payment process, and also allows tax firms to compete at the highest market levels.
Larger Target Market:
Eliminating upfront costs allows for broader and more versatile marketing campaigns that target a larger consumerbase. While a large audience with general marketing tactics won’t yield the desired results, having access to a larger total audience which can be broken into smaller market segments with individualized campaigns can yield massive results with top shelf ROI’s.
There is a vast appeal to refund transfers for both tax professionals, and individuals, and are swiftly becoming an industry standard within the tax-industry. As a necessary and worthwhile investment, learn more about the many benefits offered by Refundo’s powerful refund-transfer processing platform.
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