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According to a recent survey, 77% of consumers who were not already customers were driven online to complete online credit applications by direct mail advertisements. Credit card companies have massive marketing budgets and could focus all of their energies on T.V. and radio advertisements. However, they have discovered that relentless direct mail marketing is the most effective strategy for reaching new customers.
Credit card companies know that direct mail gives them the ability to reach a very specific demographic of the population at minimum price. For example, credit card companies know that a college student is very likely to act upon an offer for a credit card. As soon as a student graduates high school, that student starts receiving direct mail credit card offers. And usually, within months most students have acted upon those offers.
So how does the process work for a smaller business. Lets say that you sell red golf widgets: