Maximize Tax-Free Days to Boost Back-to-School Sales

School (& Tax-Free) Days

Why Summer is the Right Time to Reach Back-to-School Shoppers

It might seem like summer break just started, but back-to-school marketing is in full swing. For students in many states, the new school year will start up in early August. That means back-to-school shopping is in session — and it isn’t an event marketers can afford to overlook.

Last year, back-to-school sales reached an estimated $885 billion — an increase of 3.5% over 2017. Deloitte reports that the average US household spent $510 on back-to-school supplies, and 66% of shoppers will shop throughout the summer to find the best deals. What’s more, consumers who start shopping before August spend more on average than those who wait.

This presents a big opportunity for retailers to connect with back-to-school shoppers early on. By delivering timely and relevant offers, especially during tax-free days, brands can generate increased visits and sales in-store.

Maximize Tax-Free Days to Boost Back-to-School Sales

As a way to encourage back-to-school shopping, some states offer consumers the added incentive of tax-free days, which allow shoppers to increase their savings. By using location data to target shoppers on these days, retailers can connect with customers and get a bigger slice of the back-to-school pie.

Reaching the right customers with your brand’s messaging can produce more effective impressions, thus increasing foot traffic and trends. But who are the key audiences you should be focusing on?

As expected, Behavioral Audiences like Moms, Dads, and Gen Z should be your priority. These consumers will be shopping for their kids or their dorm rooms, respectively. Another audience that can move the needle for your business is Childrens’ Store Shoppers. They too are likely to be shopping for back-to-school essentials.

The states that took advantage of tax-free days the most last year include Texas, Massachusetts, and Oklahoma, which saw the largest increases in foot traffic to retailers on tax-free weekends compared to the rest of the season. With a little less than half of all states offering discount days, location data-driven strategies can connect your brand with relevant audiences, including those in neighboring states. The audiences with largest increases in foot traffic to retailers on tax-free days compared to non tax-free days include:

• Shoe Fanatics: +640%
• Fast Fashion Shoppers: +449%
• Childrens’ Store Shoppers: +421%

Physical Stores Will Lead the Pack

According to our visitation data, you’re sure to notice the influence that Amazon’s Prime Day has on shopping habits, with a slight dip in visitation to retailers around that day. The days that showed the highest levels of shopping-related foot traffic last year, in order, were:

• Saturday, September 1, 2018
• Saturday, August 11, 2018
• Friday, September 14, 2018
• Saturday, August 25, 2018

Although Amazon’s Prime Day and deals offered by other online retailers will lure shoppers to the web, we know that about 90% of commerce is still happening in physical stores. Walmart (50%), Target (47%), and Amazon (16%) were all top picks for parents, so it’s clear that big box retailers still lead the pack.

If you’re wondering what consumers are buying, clothing tops the list. The National Retail Federation reports that spending on new clothing averages $236 per shopper, while consumer spend about $187 on electronics, $138 on shoes, and $122 on school supplies. Last year, our foot traffic data also showed sizeable foot traffic for similiar items like Apparel & Accessories Stores (+52%) and Office Supplies (+33%).

Locate Those Back-To-School Shoppers for Maximum Results

As shoppers begin to prep for the upcoming school year, make sure your brand stays top of mind by connecting with relevant audiences at moments of high intent to drive them to your stores. How? By leveraging state-based location targeting and Audience Behavior data to encourage consumers to save big at your store.

• Location Audiences.Target people who have recently visited a specific brand or store, like Five Below, Office Depot, and Walmart.
• Behavioral Audiences.Reach shoppers who, based on real-world visitation behavior, are grouped into audience segments like Moms, Dads, and Fast Fashion Shoppers.
• Custom Audiences.Leverage audience segments based on key parameters and demographic data essential to your business by creating custom audiences, like Moms who recently visited a Target store.

Before you know it, the back-to-school shopping frenzy will have begun, so make sure you’re prepared to boost your foot traffic and sales. For more insight into this marketing opportunity, download our strategy guide below.