Chase Drops, Still Tops Direct Mail Volume List
Billions of pieces of mail inundating our mailboxes. Response rates of less than 1%. And yet credit card companies continue to be the single largest industry soliciting new customers through the mail.
In 2006, the average American household received 80 credit card solicitations, according to year-to-year results compiled by Mintel Comperemedia of Chicago.
Offers of rewards, points and cash back helped fuel an increase of 6% in mailed customer acquisition pieces by the more than 150 credit card companies whose direct marketing activity is tracked by Mintel.
From credit card companies alone, American households and businesses received 9.2 billion pieces of mail. Although year to year, Chase showed a decline of 4% in its direct marketing initiatives last year compared to 2005, it still topped the list with 1.7 billion customer acquisition solicitations.
The unit of JP Morgan was followed in descending order by Capital One Bank (1.2 billion), American Express (1 billion), Citibank (98 million) and Bank of America (92 million). Capital One posted a 13% gain over 2005 in its direct-mail volume, representing the largest increase of the top five mailers.
Both Citibank and Bank of America decreased their volume by 2% and 17%, while HSBC and Discover increased their acquisition activity year to year by 25% and 29%, respectively, according to Mintel’s research.
Barclays Bank ranked among the top 10 in mail volume, registering an increase of more than 70% as it stuffed 193 million pieces into American mailboxes.
“New [marketing] campaigns have been the key drivers in the overall mail volume increases,” says Jenny Roock, director of Mintel Comperemedia. “As companies continue to look for new ways to attract consumers to their products and services, several of the newer campaigns over the last year have focused on tailoring their cards to specific consumers with unique needs.”
The volume of posted mail is expected to decrease markedly in the aftermath of an anticipated postal rate increase and the emergence of more e-mail-based marketing initiatives, Roock says. In 2003, some 56% of mailed solicitations directed recipients online; that percentage increased to 86 last year.
