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Issuers refocus marketing strategies as economy struggles
Chicago (April 4, 2008)-The rise of a new year did not spark a rise in credit card direct mail, according to new research from Mintel Comperemedia. In the first month of 2008, the research firm reports that the estimated number of mailings sent by credit card companies dropped another 3% (from December 2007).
Credit card direct mail volume has fallen steadily since October 2007. According to Mintel Comperemedia, the number of credit card-related mailings sent to consumers topped 900 million during October, but totals have dropped 19% since then.
"The credit card industry is steadily pulling back and readjusting," comments Lisa Hronek, senior analyst at Mintel. "With the market unstable and people worried about financial risk, companies are rethinking how they use direct marketing to generate business."
Mintel Comperemedia observed the greatest mail volume declines in offers sent to current cardholders. From December 2007 to January 2008, credit card issuers reduced the number of mailings sent to current cardholders by nearly a third (30%). Meanwhile, they increased direct mail offers to non-customers by 7%.
"After the holiday season, many credit card companies changed their approach," explains Hronek. "While cutting back on mail sent to current customers, they began sending more offers to non-customers. Card issuers are hoping that increased emphasis on acquisition will help them capture new business and steal balances from the competition." Hronek notes that this change in strategy, while widespread, is not all-encompassing. Of 2007's top 10 mailers, six increased their direct mailings to non-customers after the holidays. But four cut back on non-customer mail as well as customer mail in January, remaining hesitant about the unsteady, unsure market.
Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence.
Joanna Peot
Public Relations Executive
312-628-7946
jpeot@mintel.com