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.”
