Issuers refocus marketing strategies as economy struggles
CHICAGO--(Business Wire)--
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.
About Mintel
Mintel is a leading global supplier of consumer, product and media
intelligence. For more than 35 years, Mintel has provided insight into
key worldwide trends, offering unique data that directly impacts
client success. Mintel Comperemedia is a competitive media monitoring
service that analyzes direct mail, email and print advertising trends.
With offices in Chicago, London, Belfast, Sydney and Shanghai, Mintel
has forged a unique reputation as a world-renowned business brand. For
more information on Mintel, please visit www.mintel.com.
Mintel International
Joanna Peot
312-628-7946
jpeot@mintel.com
Copyright Business Wire 2008
