"The industry is going to be shrinking: fewer people having cards and fewer cards being issued," said David Robertson, publisher of the Nilson Report. "The legislation, though, is coming as a second punch. The first punch, and much worse for the industry, was the recession."In the funny money economy a 2% return made "sense." Without the funny money the mass mailing that made sense with 2% ain't going to do it. On the other hand, marketing to people who pay their bills should increase. People who pay their bills on time is nice, but the press runs are going to be much lower.
Credit-Card Issuers to Market to 'Deadbeats' @Advertising Age - News: "YORK, Pa. (AdAge.com) -- Deadbeats may once again become the target audience for credit-card marketing.The InfoPrint part is
Of course, in the credit-card world, 'deadbeats,' until now, were people who paid off their bills every month, incurring no finance charges, usually while racking up rewards."
Mr. Robertson said. "There will be much more reliance on loyalty programs and making them as robust as possible ... to retain existing customers."Since they have spent the last year or so talking to CMOs and doing scientific like investigation, they knew all about this a year ago and should have a head start on everyone else. Check out this post at TransPromo-live way back in February.