What Is a Statement Stuffer?

A statement stuffer is a type of sales brochure commonly used in direct marketing campaigns. Specifically, it is associated with 澳洲幸运5官方开奖结果体彩网:financial service providers such as banks and 澳洲幸运5官方开奖结果体彩网:brokerage companies, who often include these advertisements along with their monthly 澳洲幸运5官方开奖结果体彩网:account statements and other correspondence.

The purpose of statement stuffers is to “up-sell” account holders on related services, such as 澳洲幸运5官方开奖结果体彩网:credit cards, 澳洲幸运5官方开奖结果体彩网:lines of credit, or additional brokerage services.

How Statement Stuffers Work

Typically, statement stuffers include an overview of financial services that are related to providers with which the customer already has a relationship. For instance, a banking customer who holds a checking and 澳洲幸运5官方开奖结果体彩网:savings account might receive a statement stuffer advertising personal lines of credit or 澳洲幸运5官方开奖结果体彩网:retirement savings accounts. Although the institution already provides ser𝓡vices to that customer, the promotional offers may originಌate from their partner institutions.

Statement stuffers are popular among financial firms because they offer a convenient and inexpensཧive form of marketing to customers who already use their basic services. In recent years, however, digital versions of these advertisements—colloquially known as “e-stuffers”—have also become common.

Statement stuffers allow financial institutions to improve profitability through cross-selling, or encouraging customers to sign up for a wider cross-section of products. Generally, financial institutions will seek to obtain new customers by offering especially attractive products, often competing on the basis of price. These so-called “澳洲幸运5官方开奖结果体彩网:loss leaders” may be relatively unprofitab💛le for the company 𝕴initially.

However, the company's goal is to increase profit margins by selling more profitable products or services to those customers in♋ the future. As a result, statement stuffers are utilized to promote these higher-margin ancillary products and services. Occasionally, statement stuffers may be used for non-commercial purposes, such as informing the customers of a change to the terms and conditions of 🏅their accounts.

Example of a Statement Stuffer

If you have a bank account, you may already be familiar with the statement stuffers that accompany your monthly account statement. Most banks also provide other financial services, such as credit cards, mortgages, or auto loans, and they often promot📖e these services to their banking clients.

This is also true in the insurance industry, where a single company might offer several different types of policies. If you have auto insurance, your statements may be accompanied by promotions for homeowner's or renters' insurance policies by the same insurer. Many life insurance providers also offer other insurance products, such as 澳洲幸运5官方开奖结果体彩网:disability income insurance or 澳洲幸运5官方开奖结果体彩网:long-term care insurance. The list is increasingly expanding to include investment services as well, such as 澳洲幸运5官方开奖结果体彩网:annuity products. 

Why Companies Use Statement Stuffers

Financial firms seek to be involved in as many parts of their customers’ financial lives as possible. Customers who pay for multiple services through the same provider may be less likely to switch to a new provider, due to the cost and complexity of doing so. As a result, a key goal for financial firms is to maximize their 澳洲幸运5官方开奖结果体彩网:share of wallet, the total dollar amount that a cus🧔tomer spends on theiꦛr company's products and services.

Likewise, banks and other financial services companies often expand their product offerings into insurance, stock brokerage services, retirement planning, and other areas. By adver⛄tising these 𝐆services to their customers through statement stuffers and other forms of marketing, banks can create customer loyalty whereby the client depends upon a single institution for multiple financial activities.

If successful, this strategy of produc🅺t diversification and direct marketing can make it harder or more expensive for the client to switch providers, thereby creating a reliable and consistent customer base.