What is ‘Direct mail’
Direct mail is a strategy of sending advertising mail, such as pre-approved credit card applications directly to potential consumers based on demographic information.
Breaking down the ‘Direct mail’
Direct mail is a form of advertising rely on the postal service to deliver promotional materials directly to consumers.
Based on various forms of demographic information such as location, income, age and political affiliation, direct mail marketing to take advantage of bulk mailing rates to reduce the cost of distributing unsolicited advertising material directly to potential customers. This type of advertising mail is sometimes called junk mail, especially on the part of its recipients.
Many industries, strategy implementation direct mail to advertise their goods or services, from consumer catalogs and coupon circulars for non-profit soliticitations and pre-approved credit card applications.
Despite the compromised reputation of direct mail remains a large revenue stream for the postal services. The total volume of direct mail has decreased dramatically in recent years. In the US, for example, the volume of direct mail has decreased from 93.1 billion pieces in 2009 to 77.9 units in 2014. However, direct mail marketers expect to increase growth in the industry in the coming years, especially as the strategic analysis and the increasing availability of demographic data helps to increase the return on investment of direct mail.
Direct mail and pre-approved Credit card offers
Even the ubiquitous direct mail and to compromise her reputation with the recipients of pre-approved offers on credit cards remain a popular strategy in the credit card industry to reach new customers.
Credit card companies can offer pre-approved credit card applications for potential new clients by running a soft credit check and create mailing lists of customers above a given credit score.
Direct mail to send pre-approved offers on credit cards remains an attractive strategy for many companies because of the constancy of physical mail, which generally have a higher level of participation than electronic advertising. Marketers often strengthening relations with pre-approved credit card offers, including a sample of credit cards and special incentives, including bonus programs and special interest rates.
A client that responds to a pre-approved credit card still must apply and offer may be rejected if information in their credit report has changed. As with all such deals, customers are expected to read and understand the terms and conditions that accompany such proposals.
It is recommended that recipients who refuse to apply for a credit card piece of mail to provide as sometimes left consumers vulnerable to identity theft. While credit card companies have created many strategies to minimize identity theft, and victims are not responsible for fraudulent transactions, responding to identity theft can be an inconvenience for all parties involved.