A Forward Outlook
Based on earnings for 2017 that saw a substantial jump in the
number of 2016 tax returns being prepared using
software, TurboTax is capturing a much bigger market share!
Our predictions for TurboTax in 2018 just happens to be more of the same. When you consider the factors behind all this growth, it's pretty easy to see that the tax software giants campaign to increase their domination is working.
Intuit Inc. the parent company of TurboTax points out that is appears they are gaining more market share from both professional tax preparation services and online rivals like H&R Block. Proof of that is the substantial reduction in business and sales that H&R Block has reported for 2017.
TurboTax 2017 Results & Mobile Growth
Intuit (NASDAQ: INTU) point out that TurboTax Online software sales climbed 29% on a year-over-year basis in the Jan. 30-March 16 period for 2017 with 12.7 million units sold.
That's double the sales volume of TurboTax Desktop software. No doubt this is a significant indication that more and more American taxpayers are getting comfortable with the online tax filing experience.
The final year-over-year growth rate averaged out is predicted to come in at half that growth rate which is still substantial at approximately 15%.
TurboTax 2018 Market Share Predictions
For 2018, TurboTax is no doubt attacking the market with that same aggressive spirit to try and keep this momentum locked into the fast lane. It's an ever growing competitive market that not only see's old veterans like HR Block, but new tax software brands as well that try to get in and take a chunk of this multi billion dollar tax preparation services market.
A major part of the magic mojo that boosted the TurboTax growth can be attributed to its decision to offer completely free tax preparation for qualifying simple tax preparation needs. This "Absolute Zero" offer included federal and state tax preparation.
Another factor on top of that was the "it doesn't take a genius to do your taxes" marketing campaign that no doubt got consumers reviewing why they pay someone else to prepare their taxes for them.
We are living with a much more frugal population now!
TurboTax Moving Forward Into 2018
The true fact here is that this TurboTax Absolute Free campaign is a way to get new customers in the door and hooked into the TurboTax brand. Fact is, most customers pay a chunk for their tax preparation software due to the fact that the free filing option only applies to those taxpayers that can get away with using a 1040EZ or 1040A tax form. Yup, super simple returns!
This offer is designed to bring young taxpayers in the door
and get them comfortable with the TurboTax brand before their
tax filing needs get more complicated. These customer then turn
into paying customers when their investments and tax preparation
needs become more complicated.