November 25, 2008
Dwindling budgets haven't stopped banks from reaching out to clients
through direct mail. During the third quarter of 2008, Mintel
Comperemedia reports that the estimated number of banking direct mail
offers sent to current customers rose 42 percent from the second
quarter.
Banks sent approximately 53 million offers to their customers during the third quarter of 2008, almost twice the number seen a year earlier. This sharp increase in retention direct mail comes on the heels of the worst financial crisis in years.
According to Diana Sheehan, Director of Research for Mintel Comperemedia, banks are relying heavily on direct marketing to communicate with and reassure their customers.
"Through Mintel Comperemedia's direct mail tracking panel, we've seen national and local banks alike increase their customer communication. With messages of security, honesty and understanding, banks are using direct mail to assure clients that their money is safe and protected," Sheehan said.
Mintel Comperemedia saw major national banks like Bank of America and Citibank dramatically increase their banking direct mail volume to current customers in the third quarter of 2008. But smaller banks also increased their retention marketing: regional players such as Parish National Bank and Webster Bank both sent more direct mail to current clients during Q3 than they did during Q2.
Across banking categories, Mintel Comperemedia saw retention direct mail increase in the third quarter. The most notable rise was in the savings category: banks sent nearly 300 times more savings direct mail communications to current customers in the last quarter than they did in the previous one. Checking direct mail volume for client retention also saw a significant 90 percent rise between quarters.
"As global financial markets shook, we saw many banks increase their direct marketing spend in an effort to hold on to the clients they had," notes Sheehan. "Banks view direct mail as an effective channel for customer communication. So, as the market settles and financial institutions work to rebuild trust and profitability, we expect they'll continue with heightened direct marketing efforts to current clients, at least into early 2009."
Mintel Comperemedia also found that banks increased their direct mail offers to non-customers during the third quarter of 2008, with estimated banking acquisition mail volume up eight percent from the previous quarter.
