Financial services direct mail drops in US
There were fewer marketing messages from financial services firms dropping onto American doormats last year, reports business intelligence provider Mintel Comperemedia. The number of mailed offers aiming to acquire new customers fell by more than a quarter.
There were fewer marketing messages from financial services firms dropping onto American doormats in 2008, reports business intelligence provider Mintel Comperemedia.
The number of mailed offers aiming to acquire new customers fell by more than a quarter.
Comparing direct mail statistics from January-November 2008 to the same period of 2007, Mintel Comperemedia saw the total volume of banking, credit card, investment and mortgage and loan new customer acquisition offers fall 26%.
For the first 11 months of 2008, the Chicago-based direct marketing tracking firm estimates financial services direct mail volume at 10.3bn. In 2007, Mintel Comperemedia estimated that volume at 13.9bn. Furthermore, when compared to the same period of 2006, the 2008 11-month total shows a 32% decline.
Stephen Clifford, VP of financial services at Mintel Comperemedia, said: “Across the board, financial services companies were forced to change their direct mail strategy last year. Faced by the unprecedented challenges of a weak housing market, the credit crunch, a global recession and declining consumer confidence, financial institutions cut back on direct marketing.”
The company says the number of credit card offers sent to new customers dropped 24% last year (comparing the first 11 months of 2008 to the same period of 2007). Mortgage and loan mail fared even worse, as lenders reduced acquisition volume by more than a third.
“Given the struggles faced by card issuers and lenders in 2008, it’s not surprising that they reduced new customer acquisition direct mail so drastically. In the face of increasing losses, they recognised the need to tailor their target audience better,” Clifford added. “But soon I expect we’ll see a levelling off in mail volume as banks find the position from which they can actively engage new customers while remaining profitable and secure.”
Together, credit card and mortgage and loan offers made up 86% of financial services acquisition direct mail tracked by Mintel Comperemedia from January-November 2008. Investment and banking offers constituted the remainder.
