In an interview on Bloomberg Television’s Market Makers, Eileen Serra, CEO of JPMorgan Chase & Co’s Card Services described mail as a diminishing marketing channel for finding new customers. Given the importance that financial marketing has been for the Postal Service, Ms. Serra’s comment raises red flags about the future of a major chuck of direct mail advertising
Currently, the most important marketing channel is JPMorgan Chase’s branch network which generates half of all new credit card customers. The branch network operates as a marketing channel even though JPMorgan Chase’s customers visit a branch on average only four times a year.
The second most important marketing channel is digital and costs twice as much as marketing through JPMorgan’s branch network. While social media marketing generates the most buzz, Ms. Serra stated that JPMorgan’s digital marketing approach is much more traditional. She described JPMorgan Chase’s way of attracting new customers digitally as “just people going on Chase.com or other online sites where [they] might see an offer for one of our products.”
Ms Serra listed mail as the third most important channel. She stated that mail is “quite a bit more” expensive than digital marketing and is diminishing in importance.