A significant majority of consumers still use direct mail as their primary way of finding out about new credit card programs, according to a survey from Vertis.
Forty-eight percent of consumers who responded to the survey said they learned about the last credit card they applied for via direct mail. Seven percent heard of the card from a friend or relative, 7% at their bank, 4% at a special event or in-person promotion, 3% online and 3% from telemarketing.
Age plays a factor in mail responsiveness, according to the survey. Forty-two percent of the Generation Y respondents said they read financial and credit card direct mail, compared with only 21% of seniors.
The success of pitches also depends on understanding the target’s financial goals. A considerable number of Generation X and young Baby Boomers (61% and 56% respectively) indicated financing their children’s education was a concern, while Generation Y adults were much more likely to plan a vehicle or boat purchase.
When choosing a credit card, 22% were attracted to moneyback incentives, while 19% liked to earn points for merchandise, airline tickets and hotel stays. Other incentives, such as a sign-up bonus or higher membership level,appealed to less than 10% of those surveyed.
Although many Americans hold multiple credit cards, 36% said they didn’t have a credit card. Of those with cards, 51% pay off their balance in full each month, while 35% make partial payments and claim reducing balances.
Eighty-one percent of seniors said they pay off their balances monthly, compared to 42% of Boomers and 30% of both Generation X and Y recipients.
The Customer Focus survey of 2,000 adults, conducted by Marshall Marketing and Communication of Pittsburgh, measures both general and industry-specific shopping trends.
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