Thank you to everyone who attended my webinar last Thursday on new opportunities in direct marketing. If you missed the live webinar but you’d still like to download a copy of the slides and/or recording, click here.

Here are the answers to questions that were submitted prior to or during the webinar:

How much volume was seen in the Discover no BT fee offer? Can you assess whether this was a test or a mass offer?

In some offers for its Discover More card, Discover has been promoting a 0% introductory APR for purchases and balance transfers for twelve months and waiving the balance transfer fee for any transfers made with the offer (subsequent transfers incur a 5% fee). Comperemedia began capturing these offers in January. They represent a small percentage of Discover’s total mail volume during Q1 2011, hinting at a possible test rather than a mass market campaign.

Are you implying that those four categories of cards are implicitly linked to the credit worthiness of the consumers? Specifically, that fee + rewards offers target less credit worthy consumers?

The four product segments that I discussed are not defined by risk score but by whether or not a card has an annual fee and whether or not a card offers a rewards program. In order of size they are: General Market (no fee, with rewards); Premium Rewards (fee, with rewards); Plain Vanilla (no fee, no rewards) and Credit Building (fee, no rewards).

Most offers are still being received by credit worthy consumers; however, it is safe to assume that Premium Rewards offers are more likely to be received by credit worthy consumers and Credit Building offers are more likely to be received by subprime consumers.

In the online display, there’s a note that the data is “partial.” What part is included, and what has been excluded?

The Q1 data for online display that I showed during the webinar included January and February but not March. Comperemedia data for these two months shows that more than half of online display ad impressions for the credit card industry are coming from just two advertisers – Capital One and American Express.

You talked about the heavy reliance on email marketing for prepaid cards. Have you seen an increase in email marketing for credit cards as well? Are email marketing efforts for credit cards targeted disproportionately toward subprime prospects?

Around 35% of Comperemedia’s email panelists received a credit card acquisition email in Q4 2010, up from 29% in Q4 2009. Most acquisition efforts, via email, target subprime consumers with some targeting co-brand member lists. Email is popular as a tool for subprime issuers because a simple “credit building” message is one that can often break through the clutter. HSBC – with its Orchard Bank card – dominates acquisition email and has replaced First Premier as the top acquisition emailer in cards. Many issuers, particularly Citi and Chase, are using email once a customer is on board. Around 54% of our panelists receive an email communication from their existing card. These range from balance transfer offers to campaigns promoting card benefits and features.

You spoke about non- rewards cards. What do you think card issuers can do to gain an advantage in the rewards space?

I discussed loyalty and rewards in my last webinar. I’d point to 3 areas:

1) Segmentation – as competition increases segmentation in the rewards space will become more important.
2) Differentiation – create a buzz by doing something different, e.g. premium rewards cards with no foreign transaction fees or Discover’s no balance transfer fee offer.
3) Instant redemption – I said in my last webinar that the first issuer to crack instant redemption will be on to a winner. Recent developments in mobile payments may accelerate the opportunities for instant redemption at the point of sale.

Do you think secured cards are driving subprime mail volumes?

For the most part offers continue to be received by the most credit worthy consumers. However, we are starting to see signs that subprime offers are back in the mail and most of these offers are coming from Capital One and HSBC. Secured cards are gaining some traction but they are really a niche in an already niche market. Capital One accounts for most of the direct mail offers for secured cards captured by Comperemedia during the past year.

How can issuers utilize direct mail to gain an edge?This was the ongoing theme throughout my webinar so I hope this pre-submitted question has already been answered. However I would sum up with three points:

1) Marketers can gain an edge by swimming against the tide and doing something different. For example there tends to be a “me too” approach when it comes to responding to new regulations. Bucking these trends can enable an issuer to gain an edge. I showed examples of card issuers doing just that with BT fees, late fees, foreign transaction fees and more.
2) It doesn’t just apply to new regulations. As mail volume continues to increase and competition intensifies it will become more important to make a bold statement and stand out in an increasingly cluttered mailbox. For example Citi and Bank of America are both promoting the theme of “simplicity.” Capital One used 8×6 envelopes to promote its Venture card.
3) Integration is becoming more important as emerging channels, such as online display advertising, continue to grow. A successful campaign will integrate multiple media for maximum impact and exposure.

How can we use the new regulations to trigger conversations that help us understand and meet our customers’ financial needs?”

Research has shown that once consumers understand the new regulations then they see them as beneficial. Card issuers that continue to educate consumers and promote the new regulations clearly will reap the benefits of positive association.

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