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In yet another sign of possible economic recovery, direct mailings are staging a rebound, and credit card offers are leading the charge, according to a recent report from the direct marketing intelligence firm Mintel Compermedia.
Following the credit crisis of 2008 and the prolonged economic recession that followed in its wake, direct mail solicitations, including mailed credit card offers, dropped precipitously. However, in the first quarter of 2010, according to Mintel, total direct mail volume increased by 16 percent from the last quarter of 2009, jumping to 6 billion pieces from 5.3 billion.
Credit card offers led the increase, along with insurance mailings. Credit card solicitations rose by a full 36 percent from the last quarter of 2009 to 1.2 billion direct mail pieces. This continues the rebound already seen in the last part of 2009, when mailed credit card offers rose by 47 percent from the third to fourth quarter of 2009.
Credit card mailings were outpaced by mailed offers for insurance, which with 2.6 billion direct mail pieces represented more than double the volume of credit card offers sent out. This reverses the trend before the economic recession, when credit card offers was the most frequently mailed solicitations. Insurance mailings now far outnumber credit card solicitations, accounting for 43 percent of all direct mail solicitations, according to Mintel.
Even as financial markets in the U.S. remain volatile, analysts view the broad increase in direct mail volume over several industries as a possible sign of increasing economic stability and growth. A seasonal increase in insurance mailings may also in part have fuelled the increase.
“While it is unlikely that we will get back to the mailing levels during the boom years, there is a good deal to be optimistic about,” says Andrew Davidson, SVP of Mintel Compermedia in a statement to Reuters. “The insurance and credit card industries still have room for growth as they expand their marketing efforts and, as the recovery gains momentum, we can once again anticipate growth in the mortgage and loans sector.”
However, even as credit card companies increased the number of credit card offers they sent out, surveys show that card issuers still are holding the credit reins tight. So while the era of great credit card deals may appear to have returned, expect the best deal to be available only for applicants with high credit scores.
