Banks increase direct marketing to customers
Although the bulk of banks' direct marketing spend is still devoted to acquiring new customers, banks are paying more attention to existing customers via direct mail and e-mail, according to a new report from Mintel Comperemedia.
During 2008, banks increased direct mail offers cross-selling additional products and services to current clients by 57% over 2007. During the same period, acquisition direct mail rose 7%.
E-mail cross-selling also increased. Cross-sell e-mails tracked through Mintel Comperemedia's e-mail panel rose from a 2% share of banking e-mail in 2007 to a 5% share in 2008.
In addition, there was a 37% increase in banking direct mail pieces sent to manage current client relationships, including informational and loyalty mailings, renewal notices and upgrade offers.
“Cross-selling to existing customers is a wise direct marketing strategy, especially now as the economy makes attracting new clients difficult,” said Stephen Clifford, VP, financial services at Mintel Comperemedia, in a statement. “An effective product cross-sell strengthens the existing relationship and helps the bank secure additional deposits.”