Cobb made his comments during a recent webcast of the company's financial results for the second quarter ended October 31.
Cobb said the company does not expect to produce client growth this year. However, he commented, "We believe we will be able to significantly reduce client loss as we move to client growth." However, growth is expected in Block's do-it-yourself products.
The changes included the client-service delivery model which "hasn't changed much in decades," he says. These include changes to how Block attracts tax clients and how it services them. In addition, "We have addressed gaps in our pricing and product strategy," he said.
Pricing changes include matching Intuit's Absolute Zero. The Block program offers free online filing for 1040EZ and 1040A, which includes the Earned Income Tax Credit and state return.
The company is also pushing Refund Advance, its no-interest refund anticipation loan. Loans are available for $500, $750 and $1,250. Cobb anticipates use of the service particularly by clients claiming the Earned Income Tax Credit or the Additional Child Tax Credit, whose refunds are being held until February 15.
Block is also charging a fee of $32 to $36 per client. However, those fees are not past on to clients, but will be recorded as a cost of revenue.
For the second quarter, Block lost $143 million for the most recently ended quarter, unchanged from a year earlier. Revenue was $131.3 million, up .5 percent from $128 million in last year's corresponding period.
