ONLINE CREDIT CARD CONSUMERS PREFER THE MESSAGE IN THE MAILBOX

ONLINE CREDIT CARD CONSUMERS PREFER THE MESSAGE IN THE MAILBOX
Study reveals mail as top driver of traffic to online credit card applications

Washington, DC - Today's online credit card applicants are more plugged into what's in their mailbox than what's in their inbox, according to a national report released today.

Despite developing trends in online marketing, the findings of a recent study conducted by comScore Networks for the U.S. Postal Service reveal that most consumers still prefer and respond more strongly to one of the oldest, most traditional forms of marketing — direct mail.

According to the 2005 "Multi-Channel Credit Card Acquisition Study," direct mail is a key factor in determining the online behavior of consumers and mail is the number one driver of traffic to online credit card applications. CIBC World Markets, a research firm specializing in corporate, government and institutional investor clients, reported that mail was responsible for more than 13 million of the nearly 35 million online credit card applications last year — over one-third of all online applications.

"The financial services industry has been very successful in developing an online credit card application model and our new study provides some great examples of how mail and the Internet work extremely well together in multi-channel marketing," noted Anita Bizzotto, Chief Marketing Officer and Executive Vice President for the U.S. Postal Service. "In our recent multi-channel catalog study, we learned that catalogs drive online sales. Now we have verification that other direct mail has a positive effect on Internet sales as well."

comScore Networks observed the actual online behavior of more than 1 million consumers and administered a pop-up survey to more than 2,400 online credit card applicants at various credit card company web sites. The study was designed to quantify the benefits of direct mail versus online marketing tools such as e-mail and banner ads, measure consumer attitudes about direct mail and online marketing and assess the impact of direct mail credit card solicitations on the quality, loyalty and volume of online credit card applicants.

"This research clearly shows that there is a powerful correlation between the marketing messages that consumers receive in the mailbox and their resulting online behavior," said Linda Abraham, executive vice president of comScore Networks. "Mail is the most effective marketing medium in terms of influencing consumers to apply for a credit card online and the Internet provides a strong fulfillment channel."

Other highlights from the Multi-Channel Credit Card Acquisition Study include the following:
Consumers have a stated preference for mail
70% of all consumers, 69% of prospects and 74% of existing customers open and read a credit card offer when delivered via mail
Consumers (including customers and prospects) prefer to receive credit card offers in the mail rather than electronically, over the Internet
Of all consumers, existing customers are most likely to open and read a credit card offer
65% of consumers read more of the credit card offers they receive in their mailbox rather than over the Internet
Consumers (including customers and prospects) are most likely to open and read credit card offers that are received via mail


Mail delivers higher quality, more committed applicants
Mail drives the most credit card application initiations and consumers influenced by mail have the highest application conversion rate
Consumers receiving mail are more likely to submit an online application
Consumers receiving mail are less likely to competitively shop for other offers


Mail prompts consumers to action
In 2004, direct mail drove more than 13 million prospects to an application and 77% of these prospects completed and submitted the application online
Mail is even more influential among prospects and non-shoppers than current customers
Mail drives non-customers into the online channel and influences prospects to complete the credit card application more than online marketing media
Direct mail drove 18.5 million application initiations and 70% of those completed and submitted the application
Consumers receiving mail are more likely to complete the application
61% of consumers respond more to credit card offers they receive in their mailbox than over the Internet
Consumers respond more to credit card offers received via mail
Regardless of credit risk segment or income level, the majority of consumers driven to apply for a credit card online are responding to mail