Mass Mailings Scaled Back
Anuradha Raghunathan reports in the Dallas Morning News (subscription required) on cutbacks in mass mailing solicitations by credit card issuers.
"A lot of the usual suspects have slowed down," said David Robertson, publisher of The Nilson Report, a consumer payments newsletter. The question is: "Do they want to continue to solicit by direct mail for a diminishing rate of returns, or is the money better spent on customer retention?" Companies spend at least $120 to attract each new customer and are loath to lose them."First you have the sunken cost ? you've already spent money to get this customer," said Scott Strumello, associate at Auriemma Consulting Group. "Are you going to let someone steal the customer from you? Major players say they need to hold onto the customer."
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