Credit card issuers sent out 391 million direct mail solicitations during the third quarter of 2009, according to Mintel Comperemedia. That’s 71% lower than the 1.3 billion offers sent out a year ago, and seven percent lower than the volume mailed in second quarter 2009.
That’s bad news up and down the scale, for printers, mail houses, mail supply firms – and direct marketers. Because fewer credit card offers mean few credit cards – which, in term, means fewer consumers with the means to buy items through direct marketing.
The offers that are being mailed are less attractive than in years past.“Credit card issuers are…adjusting their direct marketing strategy by sending less mail, they’re raising rates and fees on existing and new cards,” Andrew Davidson, SVP of Mintel Comperemedia said in a statement.
Davidson noted that more offers feature variable purchase APRs, which have risen despite a steady, low Prime rate. In the third quarter of 2009, the average rate promoted was 12.53%, up more than a full percentage point from 11.43% in first-quarter 2009.
Introductory offers on new cards have also become less enticing. In Q3 2009, nearly 16% of offers disclosed a balance transfer fee of 4% or 5%, rates that were almost unseen in direct mail one year ago, according to Mintel Comperemedia.
