Decline in Credit Card Direct Mailings
Credit card issuers are targeting only the most qualified consumers…
The amount of direct mail that credit card companies send out each month has dropped 19% since October 2007 when the number of mailings topped 900 million. Just in the first month of 2008 alone, the mailings have fallen 3%, according the media monitor service, Mintel Comperemedia. Mintel Comperemedia speculated that the change in mail volume is the result of an “unsteady, unsure market.” The biggest decline is mail sent to current cardholders, which fell 30% from December 2007 to January 2008. In contrast, direct mail sent to non-customers actually increased by 7%.
With a less than stable economic outlook and growing consumer debt, credit card issuers are refocusing their marketing strategies to find the most qualified consumers by weeding out less-qualified borrowers from their mailing lists. At the same time, credit card issuers are tightening approval guidelines for online applicants as well. According to Jeremy A. Panizzoli, President and CEO of ASAPCreditCard.com, “We’re seeing lower approval numbers across the board - from all major credit card issuers. It appears that the subprime mortgage mess has finally started impacting the credit card market, making it more difficult for many individuals - especially those with less than perfect - to get approved.”
Not every credit card issuer, however, decreased their direct mail programs. Six of the top ten mailers in 2007 increased mailings to non-customers from December to January. The top ten mailers included in the report were Chase, Bank of America, Citi, HSBC, American Express, Capital One, Discover, First Premier, Washington Mutual and Barclays Bank.
Paul Hartwick, a spokesman for Chase, confirmed that the company had decreased the amount of direct mail it sends out. “In general, our direct mail efforts have decreased as we have acquired customers through different channels, including our branch network, the channels of our co-brand partners and the Internet.”
In contrast a representative from American Express stressed the importance of mail in its direct marketing efforts. “Direct mail is an extremely important part of our mix. We remain committed to direct mail and it continues to be a successful channel for us for not only acquisition but also as a way to communicate and educate our card members on the benefits and services they have,” said Desiree Fish, VP of public affairs for American Express. “It continues to increase as does the other channels for us,” she added.
