Have you noticed a decline in the number of letters and invitations you have been receiving from credit card companies? Recent reports have indicated that credit card issuers have significantly reduced their direct mail campaigns aimed at consumers. In fact, they have cut back at a rate of about 14%, which equates to a reduction in junk mail of about 2 million pieces.
Chase credit card services stands out as a bit different from the rest of the competition. Partly due to the fact that the company wasn’t as deeply impacted by the mortgage crisis, the company has been fairing a bit better than its competition. In sharp contrast, Chase has actually increased its direct mailings by 62%, sending out more direct mail pieces than any other card issuer this year. In fact, market observers have indicated that most households are receiving two additional unsolicited offers from Chase compared to previous months. Bank of America, which actually cut its direct mailings by 7%, was the second largest direct mail marketer in the industry.
American Express has also recently increased its direct mail marketing. In fact, distribution increased 27% in the fourth quarter of this year alone. The move gave the company the second most active mailing campaign during the last quarter of the year. Aggressively increasing their direct mail marketing has given American Express and Chase a spike in new customer applications compared to other credit card companies.
Credit card issuers are, however, pulling back on the number of mailers they send to families with lower incomes. During the fourth quarter last year, for example, only 57% of those households with an income of below $35,000 were getting mailings. This is a 10% drop for that demographic compared to the fourth quarter of 2006.
According to industry experts, occasional dips in direct mail marketing is correlated directly with the cyclical patterns in the overall economy. In fact, if the patterns hold true, you’ll probably see an even further decrease in direct mail marketing by card issuers this year as the economy continues to falter with the simmering mortgage crisis contributing to an even further downward trend in mailings.
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