Polls say that U.S. consumers will spend around $700 on Christmas gifts this season, yet will get a far greater windfall when they receive their tax refund. In fact, year in year out, 75% of all individual taxpayers get a refund from the IRS.
Not only that, but according to the latest IRS report, the average federal tax refund will increase to $3,034 in 2014, 3% higher than last year’s average. Not surprisingly, consumers have started filing earlier in the year so they can get their refunds sooner. [source]
How will consumers spend this annual windfall? Networked Insights, a Chicago-based marketing enterprise software platform, examined social data spanning the 2013 and 2014 tax seasons.
For starters, it’s those nagging financial obligations – paying down bills or contributing to savings – that continue to take the biggest chunk of individual refunds, yet how consumers spend what’s left has begun to show considerable change.
Figure 1.1: Bar chart depicting data from consumers who specifically stated what they were spending their tax refund on; ranked according to 2014 data.
"By using our discovery technology,” said Rick Miller, VP of Marketing and Advertising at Networked Insights, “we can not only learn the specific areas in to which consumers are... Read more