Credit Card Direct Mail Volume Falls 28%

The total estimated direct mail volume for credit card acquisition offers reached only 1.34 billion during the third quarter, a 28% decrease from last year, according to market research firm Mintel Comperemedia.

As the financial crisis and credit crunch worsened during the quarter, card issuers scaled back mailings at an increasing rate, noted Lisa Hronek, senior credit card analyst.

“Credit card companies have been cutting back direct mail dollars for years, as they realize that blanketing Americans with credit card offers doesn't translate to increased sign up or card usage," said Hronek, in a statement. “But now, they're facing a two-fold problem that is much worse. Not only are consumers tapped out financially, but issuers are also facing record losses and they're scaling back direct mail to cope with unprecedented financial problems.”

She predicted credit card companies will continue reducing acquisition direct mail throughout the holiday season and into 2009.

“Card issuers will focus on a narrower target audience, using refined marketing and more precise mailings to tap into people's true needs and desires,” she noted.