DEFINITION of Statement Stuffer

A statement stuffer is a type of sales brochure included in a customer's bank or brokerage account statement. Most statement stuffers include some sort of short application and information about other financial services that the customer can obtain from the same provider or from one of the provider's partners. They are quite common as promotional inclusions to credit card or phone bills mailed to individual households or businesses. Statement stuffers provide a convenient and cheap form of marketing additional products and services to financial customers. "E-stuffers" are digital versions of the printed statement stuffers.

BREAKING DOWN Statement Stuffer

Statement stuffers are used by all types of financial institutions. Banks, brokerage firms, and insurance companies all use this form of direct marketing, as well as tax and accounting firms. These stuffers can market such items as mutual funds, various types of insurance, money management services or other products, such as certificates of deposit (CDs) and savings accounts. Other statement stuffers may offer mortgage refinancing, term life insurance, or rewards credit cards. These flyers are relatively inexpensive forms of marketing and are targeting existing clients so there is not regulatory need for extra disclosures or maintenance of do-not-call lists, for example.

Statement stuffers are used to enhance profitability while providing customers with increased value. They are most often used to highlight other products and services, although they can also be purely informative or descriptive, perhaps information relating to new regulations that are pending and which may affect the client relationship. There is a definite advantage to reminding customers what else a company offers, or introducing new products or services that they can potentially benefit from. For example, many life insurance companies today now offer other insurance products such as disability income insurance or long term care insurance - and increasingly offer financial and investment services as well. Some clients may prefer to have their insurance company (or their bank, brokerage house, etc.) be the one stop shop for all of their financial services. Statement stuffers can help inform customers to make such a decision.

Despite their usefulness as a marketing tool, some have criticizes the practice of paper stuffers as environmentally unfriendly, wasting paper unnecessarily - especially when the same information can now often be sent to customers digitally by email, or through the corporate websites, as "e-stuffers." Indeed, while some customers may respond favorably to a statement stuffer, the majority of these promotional flyers are discarded outright.