Credit Cards - Offers are beginning to decline
Credit Cards - The Quantity of Offers is beginning to Drop
By Nan Wood
If you are like me, you get these offers daily. My mailbox has become a haven for credit card solicitations. I’ve called my credit card providers and requested they cease sending me these offers to very little avail. Well, it seems that many of us are not taking advantage of these offers; therefore, the credit card companies are finally reducing the number of offers they mail.
Credit card solicitations have increased to more than six billion offers a year. The response rate is decreasing dramatically. Bank of America Corp and JPMorgan Chase & Co are shifting away from direct mail. They are leaning toward their banks and ATMs to cut cost and become more effective. I am sure the increasing postage rates have changed the picture for direct response mailers.
The cost of acquiring a customer via direct mail is much higher than the cost of attaining a customer using an existing branch of the bank. The banks are looking for alternative ways to entice a customer to use their services in general. The competition increases as the number of branches increases.
As the number of companies in the direct mail arena reduces, the companies remaining will become more effective. Their response rate should increase over time. I believe direct mail methods will remain popular.
Nan is an Accountant, Real Estate Professional and Business Writer. She has information sites online for research at RealEstateLady
By Nan Wood
If you are like me, you get these offers daily. My mailbox has become a haven for credit card solicitations. I’ve called my credit card providers and requested they cease sending me these offers to very little avail. Well, it seems that many of us are not taking advantage of these offers; therefore, the credit card companies are finally reducing the number of offers they mail.
Credit card solicitations have increased to more than six billion offers a year. The response rate is decreasing dramatically. Bank of America Corp and JPMorgan Chase & Co are shifting away from direct mail. They are leaning toward their banks and ATMs to cut cost and become more effective. I am sure the increasing postage rates have changed the picture for direct response mailers.
The cost of acquiring a customer via direct mail is much higher than the cost of attaining a customer using an existing branch of the bank. The banks are looking for alternative ways to entice a customer to use their services in general. The competition increases as the number of branches increases.
As the number of companies in the direct mail arena reduces, the companies remaining will become more effective. Their response rate should increase over time. I believe direct mail methods will remain popular.
Nan is an Accountant, Real Estate Professional and Business Writer. She has information sites online for research at RealEstateLady
posted by Nan at 12:27 PM
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