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H&R Block’s brand name, better pricing and publicized “friendly” conversion strategy seem to be just the thing for disenchanted Intuit customers. These competing offerings subject us to significant price pressure.Īs a distant #2 in tax preparation software, H&R Block is in a good position to capture market share because of Intuit’s missteps. We also face competition from several other large assisted tax preparation service providers, from a myriad of small seasonal tax preparers, and from numerous online self-preparation offerings, including 2nd Story Software’s TaxACT.
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In the private sector we face intense competition from H&R Block, which provides assisted tax preparation services in its stores and a competing software offering called H&R Block At Home. In our Consumer Tax business, our future growth depends on our ability to attract new customers to the self-preparation tax category from tax stores and other seasonal assisted tax preparers. Intuit explained this risk in its last annual report: With Intuit’s product downgrades, curious pricing strategy, poor implementation and weak response to criticism, competitors now have an opportunity to pick up some of Intuit’s 29 million TurboTax customer base. However, consumer satisfaction and trust are key issues for a successful financial product.
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However, Intuit is upgrading customers for free if they call in (this is unannounced, but widely discussed by commenters and reporters).Ī key fallout: Competitors now have an opportunistic advantage I have seen no management explanation for keeping the same prices.
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In addition, many customers buy online (i.e., get the box after the purchase) or download TurboTax (i.e., never get a box). The problem is that repeat customers have not had the need to go to the Intuit site to check out the product features. The explanation is that the information could be found on the Intuit site or on the physical box in the store. Defending their lack of advance communication.Unfortunately, coming after the negative reaction, this defense sounds weak, like an excuse invented after the fact.
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They now have attempted to explain the “why” behind the decision to eliminate key IRS schedules.
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However, Intuit provided no advance notice of the Deluxe and Premier version downgrades, so previous users ordering the new 2014 Deluxe and Premier versions expected the full complement of IRS schedules.
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Intuit says that almost 29 million people used TurboTax for their 2013 tax filings, meaning about 6 million download the product. The heart of the problem: Intuit’s implementation