A few years ago, when there were 7 billion credit card solicitations being mailed, one of the core types of lists being used was recent credit card issues.
This, of course, makes sense. Everyone in the direct marketing business knows that people who indicate they are currently in the market for a product or service represent the best prospects for your offer of a similar product or service.
There are only two types of people. There are those who requested a credit card and were accepted—and there are those who requested a credit card and were rejected. About 65% of Americans have a credit card. The remaining 35% don’t qualify, and usually have little or no discretionary income.
In today’s world, almost everyone who buys from a catalog uses a credit card. A typical catalog mailer will receive 50% of their orders via the company 800 number and 50% online. Both demand the consumer has a credit or debit card.
More and more direct marketers are finding ways to make new credit card issue lists work. The lists offer a variety of selections, including the type of card, whether it is a consumer’s first card, and even how many cards the consumer has. There are over 2 million credit cards issued each month from both banks and retail stores. Bankcards have a higher credit limit than retail cards—and people with multiple cards have higher credit limits than people with one or two credit cards.
This is also the perfect list to use as a qualifying overlay. Whether you’re mailing a catalog, sending out a fundraising appeal, generating leads or selling some other product or service, it hardly makes sense to mail to people who did not qualify for a credit card. By overlaying this information on your mail file, you can eliminate people with little or no credit and focus your mail on those who have the best ability to pay, with the highest discretionary income. Not only will your response percentage go up, but your average order will be higher. This can be the secret to turning marginal lists into profitable lists.
With over 25 million hotline names available annually, this is a must-test category for any high volume mailer.
David Avrick is president of Avrick Direct Inc., Santa Barbara, CA.
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