Investment companies gear up for biggest IRA direct mailing period

Chicago (March 24, 2010) – With the April 15 deadline for IRA contributions quickly approaching, new data from Mintel Comperemedia, a service that provides direct marketing competitive intelligence, suggests that March will be a record month for IRA direct mail.

January 2010 was an impressive month for IRA direct mail, with a staggering 88% increase over mail quantities from the same period last year. However, estimated mail volumes in this segment were slightly reduced in February 2010 compared to the prior year.

“Since 3 in 5 people file their taxes and make IRA contributions after the end of February, March is an ideal time to reach consumers and encourage contributions,” comments Susan Wolfe, VP of financial services for Mintel Comperemedia. “With the economy still recovering and the unemployment rate at an all-time high, the ability for consumers to make IRA contributions in 2009 remains in question. “

Despite the difficult financial times, research shows people are saving more than ever and investment companies are hoping to capture some of that savings. Since companies are competing for fewer dollars from fewer consumers, the competition is expected to be tough, resulting in aggressive direct mail campaigns, as well as reminders on websites, ATM terminals, in the branch office and in monthly statements.

With the elimination of the income cap for Roth IRA conversions, which means anyone can now convert from a Traditional IRA to a Roth, Mintel Comperemedia finds that most companies are not just trying to sell IRAs through direct mail. Instead, they are using it as a lead generation tactic, to get consumers to call or come directly to firm offices.

Susan Wolfe notes,” once a prospect calls or comes through the door, companies need to take a broad, possibly overwhelming topic and make it more manageable for a consumer to make decisions about their retirement future. “

About Mintel Comperemedia

Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence. Follow Mintel on Twitter: https://twitter.com/mintelnews

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