Credit card mail solicitations continue to decline in 2008…
New research from Mintel Comperemedia, a leading global supplier of consumer, product and media intelligence, shows a decline in direct mail credit card solicitations for the third consecutive quarter. The steady decline of credit card mail began in 2007 when estimated totals reached 1.86 billion pieces and have fallen to approximately 1.54 billion in the second quarter of 2008.
The research points to some top financial institutions making cuts across the board, and others that have realigned their acquisition marketing efforts. For example, Discover® decreased credit card mailings, but their loan mail volume increased by more than 200%. Citibank® increased banking mail by over 700% from 1% to 8% in 2008. Discover® and Citibank® have cut their direct mail push by 18% and 31%, respectively. Bank of America®, Chase® and Capital One® have held steady on credit card mailings. But HSBC has reduced their banking, loan and credit card mail volume with 52% less sent overall this year.
“Undoubtedly, this is a symptom of the global credit crunch,” comments Lisa Hronek, senior analyst at Mintel. “Record losses from the subprime fallout and rising delinquencies have squeezed issuers’ credit so tight, they’re tapping out. Add that to the fact that consumers’ credit is already stretched and you’re left with a tough market for credit card issuers. Cutbacks in direct marketing are part of financials institutions’ plan to ride this through. We see notably less credit card and mortgage offers as companies figure out key messaging, services and products for today’s anxious, weary consumer.”
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