Credit Card Solicitations Down in Second Quarter

Large bank card issuers apparently throttled back their direct mail solicitations in the second quarter 2003. Two market research firms that track credit card solicitations reported a sharp decline in direct mail volume. Comperemedia (based in Chicago) said second quarter mailings fell about 25% compared to one year earlier, totaling 808.1 million. Synovate (Tarrytown, NY), which employs a different tracking methodology, reported a 21% drop, to 1.072 billion. The American Banker reported that a large part of the drop was due to reductions in mailings by Citigroup and Bank One.

Whether this reflects a temporary pause or a shift in marketing strategy is not clear. Either way, Susan Wolfe, Comperemedia's vice president for research, told the American Banker, "This is a great opportunity for some smaller issuers to gain a greater 'share of mailbox.' There is not as much competition in the marketplace." Andrew Davidson, vice president of competitive tracking at Synovate said direct mail card solicitations may rise again this fall in response to the October implementation of the national Do Not Call registry maintained by the Federal Trade Commission.