CHICAGO--(BUSINESS WIRE)--Direct mail outreach by the financial services sector to Millennials (born between 1980 and 1999) grew faster than outreach to any other age group from 2010 to 2014, according to intelligence from Chicago-based Competiscan. While it’s not surprising that Millennials are a sought after demographic, the idea that direct mail not only continues to be used, but shows signs of growth as an acquisition tool, seems counter to research trumpeting Millennials’ love of technology and distaste for business as usual.
Competiscan data reveals that the financial services sector, including banks, credit card issuers, investment firms and insurers, has steadily increased direct mail acquisition volumes to consumers ages 20-39 during that five-year period. Millennials, which comprise a majority of that age bracket, received nearly 40 percent of all financial services direct mail acquisition offers in 2014. Notably, that figure represents a nearly 10 percent increase from 2010.
Richard Goldman, CEO & Founder of Competiscan, notes that not all segments within the financial services sector are integrating digital technologies into direct marketing campaigns at the same pace. For example, while banking applications originating from mobile devices are growing, direct mail offers from banks, as observed by Competiscan’s consumer panel, are not spotlighting the mobile device as a response mechanism but instead offer a URL, toll-free number or suggestion to visit a local branch. Conversely, credit card issuers such as Citibank, Capital One and First National Bank of Omaha now promote mobile options, such as smartphones and tablets, within direct mail offers, as one of multiple response mechanisms for completing a credit card application.
“It’s taken time for the financial services marketplace to adapt direct mail campaigns in a way that appeals to the technological tastes of Millennials,” said Goldman. “While a given product may traverse generations, financial services institutions need to recognize the unique way in which each generation will choose to interact with that product, whether that means banking on your phone or applying for a credit card while riding the subway. Millennials are a large, diverse, and influential generation of consumers that should garner the respect of the entire financial services industry for years to come.”
Goldman believes that despite the migration toward new digital marketing channels, direct mail will continue to be recognized as a stalwart of direct marketing, being both trusted and time-tested. It will be a long time before technology can replace a letter in hand when it comes to whom Millennials trust with their money.
Founded in 2006, Competiscan provides its valued clients insights into the direct marketing strategies of their competitors. As the market leader, Competiscan and its powerful web-based search utility monitors direct mail, email, mobile, online banners, print, and social networking communications targeted at consumers, businesses, financial advisors, insurance producers, and providers over time. Visit www.competiscan.com.