Banking rewards a hot trend in direct mail

Chicago (December 7, 2009)–You get rewarded for purchasing subs, gasoline and airplane tickets, so why not get rewarded from your bank for every purchase?
Mintel Comperemedia, a service that provides direct marketing competitive intelligence, reports that in the first three quarters of 2009, nearly a third of checking direct mail offers (31%) promoted rewards for everyday banking. This compares to just 13% of offers tracked in 2007.
“Taking a cue from credit card issuers, many banks have started offering rewards for daily purchases. Consumers feel tapped out financially, so they want more bang for their buck. Banking rewards programs are yet another deal for bargain-hunters to find,” observes Susan Wolfe, VP of financial services at Mintel Comperemedia.
Citibank’s extensive rewards program–the ThankYou Network–leads the industry in innovation. “Designed to develop and nurture customer relationships, Citibank’s program is unmatched in depth,” states Susan Wolfe. Citibank heavily promotes the ThankYou Network in customer mailings and as part of its acquisition strategy.
Other banks offer rewards programs, but they often focus on just one activity, like debit usage. Mintel Comperemedia has tracked these offers from banks including Citizens and KeyBank. One notable exception is Capital One, which launched a rewards checking account in late 2008. Capital One allows customers to combine rewards from credit and checking to earn points faster.
“In 2010, I believe we’ll see banking rewards programs begin to grow in number and scope. As the industry recovers from recession, banks will look for ways to make their customers more loyal and profitable. Rewards programs will likely be part of that solution,” states Susan Wolfe.
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