Capital One axes direct mail for acquiring customers

LONDON - Capital One, once a top three user of direct mail in the UK, is axing the channel for acquisition purposes as it devotes more resources to digital marketing.

Read the whole article.

An interesting move by Capital One, traditional direct agencies need to get their heads around affiliate, search and price comparison methodologies or risk losing their business to more switched on integrated shops. I predict we'll see this approach moving to retention programmes as well.

DM agencies have relied heavily on the credit card industry for years and this will come as a blow. It does seem to have taken Capital One a long time to spot the fact that junk mail is just that - junk. The scattergun approach died off a long time ago. Try http://www.nexusdp.co.uk/design-agency-blog/?cat=72 for a common sense approach to direct mail.

Thank God for that! I've lost count of the number of Capital One credit card direct mailers that have gone in my recycling bag. And to top it off I've never eligible for one of the Capital One cards!!!

Shortsighted if you ask me. As a non-high street bank, they need to ensure that people are aware of their brand and offers. DM is the best way of doing that in an accountable manner. I would imagine they will begin to recruit riskier applicants and as a result approval rates will drop, along with profitability.