Pushing Credit in Canada
Edited By Lisa Yorgey
Pushing credit in Canada
The number of credit card offers mailed to Canadian consumers in the first quarter of 2001 hit a new high of 45.8 million, reports Mail Monitor, a direct mail acquisition tracking service from BAIGlobal, a market research firm based in Tarrytown, NY.
The tracking service reports that 73 percent of the 45.8 million offers mailed to Canadian consumers in the first quarter of 2001 were sent by U.S. credit card marketers, including Bank One, MBNA, Capital One and Providian.
Despite the deluge of new card offers, Canadian consumer response is low and in sync with U.S. response. However, Andrew Davidson, vice president of competitive tracking services, BAIGlobal, points out, "The low response rate in Canada may be due to different reasons than in the United States, where mailbox clutter is often a factor in low response."
In the fourth quarter of 2000, Canadian households received 2.3 offers while their U.S. counterparts received 4.7 offers. Rather than mailbox clutter, Davidson suggests Canada's low response rate is due to a higher penetration of credit cards in Canada, where 89 percent of households already have a credit card, compared to 76 percent in the United States.
According to Davidson, the Canadian marketplace is more saturated than the United States. "Credit card issuers don't have to break through the clutter, they have to break through the complacency. Marketers have to get Canadian households that already have credit cards to either apply for another card or trade up to a new card product," he advises.