Big Banks Increasing Direct Mail Marketing Campaigns
Some of the biggest banks in North America are making a statement on how they do their marketing, according to the experts at Macromark. Recent numbers detailing the third quarter of 2013 and first quarter of 2014 show that direct mail is the primary medium big banks are using to engage customers, and that trend will continue to grow. These numbers also show that big banks are cutting back considerably on communicating with customers over e-mail.
A large portion of the direct mail marketing campaigns conducted by these big banks were geared toward customer acquisition. From the fourth quarter of 2013 to the first quarter of 2014 alone, banks increased their direct marketing efforts by 18%, almost one-third of that being offers for opening a checking account, with Chase and Capital One 360 leading the increase in volume.
The first quarter of this year has already seen a 15% increase in dollars being spent by banks on direct marketing, at approximately $100 million. This boost has been spurred by Chase more than doubling their spending on direct marketing campaigns and mailing direct marketing campaigns and mailing an incredible 40 million checking offers. Discover also ramped up their mail volume, tripling their checking offers this quarter.
And the mailings weren’t simply empty offers; many of the big banks pushed incentives in over half their mailings to convince consumers to open these accounts. The standard offer was $50.00, but some banks promised $200 each for a checking and savings account and some offered up to $600 if multiple accounts were opened.
While these numbers may be eye-opening to some, Macromark is not at all surprised by the increase in direct mail marketing by so many of the major banks. Finances are one of the most personal discussions people have, and the most personal means of communication is certainly by mail. Mail gives consumers a chance to take their time and digest the information contained in the envelopes and make educated choices based on the information received. In addition, e-mail marketing carries risks; the practice contains many scammers sending “promotions” similar to those of real businesses for the purpose of acquiring sensitive and private data.
Big banks have an advanced understanding of their current or potential customers and recognize what method they best respond to. Macromark facilitates the communication between companies and consumers by providing lists that reflect the precise demographic necessary for any direct marketing campaign. The growing commitment to direct marketing by the big banks is further indication of the power of this industry and its overall effectiveness in engaging, interacting with, and converting consumers.
“4 Big Direct Marketing Trends in Banking,” The Financial Brand web site, June 9, 2014; http://thefinancialbrand.com/40264/direct-marketing-trends-in-banking/.