Mintel Comperemedia: Banks cross-sell more products to existing customers through direct marketing

New data from Mintel Comperemedia, a service that provides direct marketing competitive intelligence, shows banks are paying more attention to their customers through direct mail and email. During 2008, banks increased direct mail offers cross-selling additional products and services to current clients by 57% (from 2007). Over the same time period, marketing direct mail offers sent by banks to lure in non-customers rose just 7%.
Banks also increased other direct mail communications to their customers via informational and loyalty mailings, renewal notices and upgrade offers. Mintel Comperemedia reports a 37% increase in banking direct mail pieces sent to manage current client relationships (2008 v. 2007).
“Though the bulk of direct marketing spend is still devoted to acquiring new customers, many banks increasingly recognize the value of cross-selling products and services to current clients,” states Stephen Clifford, Vice President of Financial Services for Mintel Comperemedia.
“A customer who uses two or more of a bank’s products likely has a deep, loyal relationship with that bank. So, cross-selling to existing customers is a wise direct marketing strategy, especially now as the economy makes attracting new clients difficult. An effective product cross-sell strengthens the existing relationship and helps the bank secure additional deposits.”
Banks also increased current customer cross-selling efforts through email, according to Mintel Comperemedia. Cross-sell emails tracked through Mintel Comperemedia’s email panel rose from a 2% share of banking email in 2007 to a 5% share in 2008.
“With credit markets tighter than they’ve been in decades, banks are especially eager for funds to support lending, so they want to get more deposits out of existing customers,” comments Stephen Clifford. “I expect that this year we’ll see continued interest in current clients as a way for banks to expand relationships and address difficult economic challenges.”
Banking direct mail offers include certificates of deposit (CDs), checking accounts, debit cards, money market accounts, online banking services and savings accounts