Direct mail usage in banking and investment industries grows
By: Mark HaslanMay 25th, 2010
While the economy is still making a recovery, it seems direct mail marketing is still popular in a number of industries. A recent report from Mintel Comperemedia, a direct marketing competitive intelligence firm, indicates that direct mail marketing volumes are up in the banking and investment categories for the first quarter of 2010.
In the banking sector, direct mail marketing has traditionally been very popular. The use of transpromo mail – where offers are included in transaction mail – has remained consistent through the economic recession. With many banks struggling to retain their customers, transpromo direct mail has played a critical part in their marketing efforts.
According to Mintel Comperemedia, banks sent an estimated 297 million brochures to customers in the first quarter of 2010, offering new checking accounts, savings products, online banking services, and debit cards. More than 90 percent [of the brochures] had incentives or promotions, up 16 percent since Q1 2008.
"There is not a dire need to increase banking direct marketing volume right now," said Susan Wolfe, vice president of financial services for Mintel Comperemedia. "Instead, banks are focusing more on how they market their products. We are seeing more cash incentives and more necessary qualifying activities in order to earn incentives, rewards or bonus interests."
Meanwhile, in the investment sector, direct mail marketing has seen an increase in usage. Investment mail has trended upward over the past three quarters, and that momentum continued going into 2010. Investment mail for brokerage firms increased by 70 percent, while IRA mail grew by 15 percent year-over-year.
Growth in the investment sector was driven by offers for accounts, changes to Roth IRA conversion rules, and the IRA contribution deadline on April 15, according to Wolfe.
On Friday, the United States Postal Service announced a strategic realignment of its shipping divisions. The USPS will be merging the expedited and ground shipping groups into a single service unit. It will also be focusing more on product visibility and consumer information. These changes are part of a greater initiative to stabilize the company. According to postmaster general John Potter, the realignment is expected to allow the USPS to offer better services to the consumer as well as reduce operational costs.
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