Category Archives: Multi-Channel Marketing

Internet is now Bank of America’s largest credit card account production channel

Bank of America’s Full Year 2010 Investor Factbook revealed some interesting trends in various channel’s share of credit card account production

  • eCommerce channel accounted for 36% of the bank’s credit card account production in 2010, up significantly from 15% in 2008
  • Bank branch network share fell from 25% to 21% (note that Bank of America was at the forefront in the mid 2000’s in driving credit card sales through branches)
  • Direct mail share rose from 20% to 21%, stemming steady declines in its share of account production in recent years

The findings underscore the growing importance of the Internet as a sales channel.  However, what the Bank of America data does not reflect is the fact that consumers now tend to use multiple channels before making an acquisition.  For example, a consumer could receive a credit card offer in the mail, but submit their application via the Internet.  Therefore, bank credit card issuers need to ensure that these key channels (Internet, branch and DM) are all in synch to optimize sales effectiveness.

Email Re-Engagement Strategy #3: Email Engagement without the Email

Recent EMI blog posts discussed the growing importance of email engagement and the roles of preferences and pursuing new tactical approaches in re-engaging customers. But it’s also important to remember that there are many people who don’t enjoying reading and interacting with email. They get too many; they find it difficult to scan; they didn’t grow up using email and aren’t completely comfortable with it; they taint all commercial email with the “spam” brush—there are a variety of reasons for non-engagement with emails that are based on the medium itself. In light of this, it’s vital to explore alternatives to the low-cost siren song of email such as direct mail, telemarketing/call centers, and even social media platforms like Facebook, Twitter, and LinkedIn.

There are two important reasons to consider these types of media as possible solutions to the challenge of email engagement:

  • Any form of engagement that helps you maintain a viable communications relationship could, at some point, could open the door to email engagement.
  • Demonstrating responsiveness to the implicit media preferences of recipients will make them more favorably inclined to all your communications—if you continue to send them email they will be less likely to mark it as spam.

Obviously, because non-email media generally carry much higher variable costs, it’s necessary to be selective about when and how to utilize these channels. Targeting the highest value email non-engagers would be one logical approach. Segmenting based on the customer lifecycle is another possibility; for example, you could target those whose recent email activity has declined in the hope that they would be more likely to respond and then re-engage by email. Whatever the approach, it’s important to utilize non-email channels to maintain the relationship because the alternative (continued email non-engagement) will only result in a shrinking email list.