Credit Card Direct Mail Response Rates Take a Nose Dive

Posted On: August 27, 2007

By Curtis Arnold, Founder of CardRatings.com

In 1998, credit card issuers could count on a response rate of 1.2% to the offers for new cards that they sent out. For every 1,000 pieces mailed, 12 people would sign up.

The projected response rate this year is only 0.28%, or four times less than what the credit card industry received less than a decade ago. Now, for every 1,000 pieces of mail, not quite three of us bite at the offers being sent to us.

Yet, from the industry’s point of view, direct mail is still very effective. Why? Because 42% of us got our newest card via a piece of mail. That’s the finding of a recent study of 400 cardholders, by the Auriemma Consulting Group, publisher of Cardbeat, a market research report for the credit card industry.

Still, as Cardbeat’s Managing Editor, Megan Bramlette reported:

“Our data shows that most consumers do not enjoy receiving card solicitations in the mail. In fact, about 14% say that they are overwhelmed by the number of mail solicitations that they receive.”

On average, we actually open only 26% of the offers that arrive in our mailboxes – “with nearly half of respondents reporting that they do not open any of the credit card solicitations that they receive in the mail,” according to the study’s findings.

It can’t make the industry happy that almost half of us toss these offers into the trash, unopened. (Remember to shred them, people!) But if issuers want to attract new customers, it still seems to be their best option. We’re more likely to respond to a piece of junk mail than we are to any other sort of offer, whether it’s a card we read about on the Internet (I still think our Credit Cards section is best place to comparison shop for a card!), see advertised on television, or find out about at the bank.

IMPORTANT: If you would like to stop receiving unsolicited credit card offers in the mail, all you have to do is call 888-5-OPTOUT (888-567-8688) or click here.

According to Cardbeat’s study, we typically get 11 credit card offers a month. If my mailbox is any indication, that number seems low to me. On average, how many do you receive? Tell us and the whole world by posting in our popular credit forum!

This article was originally published on CreditBloggers.com by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. Curtis is currently working on publishing a book about credit card usage with Pearson/Prentice Hall- more details forthcoming!

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

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