Just received a 6 x 9 envelope from "Capital One Small Business Solutions" -- usually I just toss anything from a credit card company because the copy isn't usually worth reading. This time they got me to open it ...

First they used a Manila 6 x 9 envelope with a stick on label that included the "presorted standard" indicia. It looked like the usual machine addressed junk with two bar-codes and the presort marketings. But something was different ...

First the envelope was a little beat up. I know my postal carrier is rough, but the corner was crumpled and the envelope seemed a little thick. At first I though it contained a multi-page report, like maybe a credit report, I did look at their Auto branch when pricing a car loan last month. So I opened it ...

The standard letter with brochure, disclaimer, and business reply envelope came out plus something interesting. They included a small rectangle of bubble wrap. That's what made the envelope feel different.

Sure, they could have used any grabber. They could have tied the bubble wrap to the letter calling it a "stress tool" or "other credit card offers are full of air" -- but for a grabber it's cheap. Think about it, a 5 x 8 rectangle of bubble wrap really doesn't weigh anything.

Because the bubble wrap is thick it made the envelop look and feel different.

Capital One could have done a lot better with the copy and offer, however, I give them a "B+" for at least getting me to open the envelope. This campaign with a tie-in to the grabber and less information on the envelope would have sat me down to read the letter.

What kind of "low cost" grabbers have you found got the envelope open? I've heard stories about Bob Bly using a very larger paper-clip. What ideas do you have for using office supplies (other than a pen) as a grabber?

Best,

Justin

That's excellent ... just wonder how many reply cards they got back.

I also like their copy, very short, sweet and relevant to the grabber.

Best,

Justin

I'm impressed by Capital One's attempt.

Most credit card offers, as we all know-- suck.

I think it was Denny Hatch who said that many credit card companies are only getting a couple replies per 1,000 pieces mailed.

The real question, though, is why? I mean, obviously the credit card companies rely on Direct Mail for a huge part of their business. Why the heck don't they test and retest and put together some packages and offers that actually sell?

Chris,

They actually do. I must get offers for credit cards literally every single day. And I'll sometimes get competing offers from the same bank in the same mail... if not a day or two later.

Whether it's big benefit is 0% interest on balance transfers for a year... Or 1.9% for the life of the transfer... Or even 0% for 18 months.

ESPN (they have a new visa card) has been sending me offers at a rate of no less than 2 a week, for the last few months.

It looks like credit card companies are testing their direct mail ...
However, still their offers are horrible. While this last letter got me to open the envelope and read part of the letter ... it was badly structured and didn't have a clear offer.

Most credit card offers have a terms of agreement or some other fine print in the package. I'm sure this is required by law, but in many cases it tells you that you aren't really qualified and that for the special rate you'll need to apply. (Yes, I've bothered to read a few, I'm always looking for swipe.)

Unless their economics are so good and market is so big that we are only seeing the tests. Meaning, their universe is millions of people and they can afford to test segments (do it yourself, mail order buyers, friends of ..., good credit buyers, ...) of 50,000 or more to start.

Cards like American Express can make $75 to $150 per year in fees, then they can sell the name of card holders a couple times a year, plus any fees (or interest, depending on the card) over the year. They also make money every time you use the card, whether or not you pay off your balance in full each month.

First year value may be $250+ dollars. Other credit cards may have similar first year values, or they take into account that most card holders, hold for multiple years.

At 1 in 1000, they can spend $1.75 per piece. At 50k quantity they probably spend $0.40 to $0.50 per mailing including bulk postage, maybe less if split testing elements. So maybe they can mail you 3 times each year or more. Does anyone have an idea of the customer lifetime value of a card holder?

This is the first time I've seen credit card companies use a grabber, besides the usual mock-card.

Best,

Justin

I can only tell you what I've experienced. And some of the offers in my opinion are actually quite good... compelling even.

I go 2 yesterday from the same card. It must be a test. Slightly different letters with the same offer 0% on balance transfers and purchases until August of 2008.

That said... I get many that suck.

No doubt a very cool ad!

I'm just trying to recall a time I ever needed to cut a 60 degree angle on a 2x4. I can't and I do a lot of woodworking as a hobby.

Anything crunchy-sounding, for example, cellophane. Or that rolls around in the envelope,for example, BB's or ball bearings. Or that you can hear when you shake the envelope, even, and I truly hate this one, confetti. But I will open it every time. One of the greatest, and I don't even know if this is legal, was an envelope with a string hanging out of it. The curiosity really soared on that one.

DD