Credit card issuers focus on wealthy with more premium card offers

Change in direct marketing strategy a good sign for credit card industry Chicago (September 9, 2009)–If you’re an affluent American, chances are you’ve seen more premium credit card offers in your mailbox recently. Mintel Comperemedia, a service that provides direct marketing competitive intelligence, reports credit card issuers are advertising more premium credit cards in an effort to attract the best customers.
In Q2 2009, credit card issuers sent 28% more marketing direct mail offers for premium cards than they did the quarter before. This occurred while issuers reduced credit card offers as a whole by 8%.
Even more, credit card companies sent a steady number of premium card offers since early 2008 while slashing direct mail for general cards. In the first half of 2009, premium cards accounted for one in five (19%) mail campaigns tracked by Mintel Comperemedia, an increase from just one in 10 (9%) in the first half of 2008.
Andrew Davidson, senior vice president of Mintel Comperemedia, comments: “Credit card companies are competing to attract people with high credit scores and big spending habits. Because premium credit cards often have high associated fees and low risk, issuers see them as an excellent way to restore profitability in today’s economy.”
Credit card issuers are also competing by introducing new premium cards. High profile cards launched since beginning of the downturn include Chase Sapphire, the Visa Black Card and the American Express Hilton Honors Surpass Card.
Andrew Davidson sees the focus on premium cards as positive: “Credit card issuers are beginning to expand with more credit and products for the affluent. It won’t be long before this trickles down and we start seeing greater credit card marketing to all consumers.”
Defined as MasterCard World or Visa Signature