Commentary

Consumers, Credit Cards and Direct Mail Promotion

Consumers, Credit Cards and Direct Mail Promotion

According to a new survey from Vertis, conducted by Marshall Marketing and Communication as reported in DirectNewsline, a significant majority of consumers still use direct mail as their primary way of finding out about new credit card programs.

  • 48% percent of consumers who responded to the survey said they learned about the last credit card they applied for via direct mail
  • 7% 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

    Forty-two percent of the Generation Y respondents said they read financial and credit card direct mail, compared with only 21% of seniors.

    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
  • 35% make partial payments and claim reducing balances
  • 81% of seniors said they pay off their balances monthly, compared to 42% of Boomers and 30% of both Generation X and Y recipients

    For more information: Direct_Newsline@newsletters.primediabusiness.com

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    About the Author

    Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.