Vistaprint Small Business Survey

VISTAPRINT, December 10, 2009 – The Netherlands based company, Vistaprint, has published a recent survey of 300 small businesses on their marketing methods and outlook. The survey is available online at the Vistaprint Small Business Blog.

Focus on Small Businesses

The survey was conducted on small businesses where the respondents were self-reporters. Respondents had to be either a sole proprietor, independent contractor, owner or general manager of a business with less than 100 full or part-time employees. The purpose of the survey was to get some insight into the kinds of things that small businesses were focusing on from a marketing perspective and what they might be willing to try in 2010. The survey was also geared to find out where small businesses turned to for marketing knowledge, and the considerations small businesses held as to what some of the perceived barriers were in trying new marketing methods like social media.

Survey objectives

• Assess the overall importance of marketing to small businesses
• Understand what marketing tools small business owners are currently using, and which tools they plan to or would like to use in the future
• Gauge marketing spend in 2009 vs. 2008, and what tools small businesses are using more (or less) of because of the downturn
• Measure marketing budget and time spent

Survey Findings

Some of the key findings of the survey were:

• One of the most common marketing methods used was email marketing. It would continue to be a very important marketing tactic that small businesses would be likely to try moving forward.
• The biggest perceived barrier to trying new marketing efforts is time.
• Many small businesses will look to explore and capitalize on websites and Social media like Twitter and Facebook in the next 12 months.
• Currently only 38% of small businesses have a website but despite time and money being perceived barriers to starting websites for small businesses, the survey made it clear that their adoption rate will continue to increase. This was especially true for micro and single proprietor businesses.

Caveats

While the survey made it clear that email marketing was one of the most common marketing methods used by small businesses, no details were provided as to the kind of email marketing employed. Small businesses reading this survey should understand that there is a big difference between email marketing to cold mailing lists vs direct marketing to existing customers and qualified prospects.

Quality Mailing Lists are Essential to Marketing Success

A qualified prospect would be someone who has shown some initial interst in the products or services offered. Whether a prospect shows some interest by responding to a website contact form or print ad or trade show or customer referral or from a field sales call, if there is not some initial interest by the prospect, the likelihood of a decent response rate to an email campaign will be very low. For email campaigns to be successful, the offer has to be good, the presentation has to be good and the mailing list has to be good.

Direct Mail Marketing and Small Business

The recession has led small businesses to increase their use of the marketing technique they see as most important. Although the survey shows that 21% of small businesses have used email marketing more than other methods, still 9% see traditional marketing via direct mail (postcards and catalogs) as the most important and are planning increases in their direct mail marketing efforts. Over 20% of respondents are increasing their use of direct mail marketing campaigns. This is a significant finding and makes it clear that direct mail marketing is not only viable, it is essential to small business success.

Pitney Bowes

STAMFORD, CT – On November 30, 2009, the Pitney Bowes company announced a new online list management service for organizations that either use direct mail infrequently or who send mostly a small volume of direct mail.

Primarily targeted for small businesses, the new service is called AddressRightNow.The AddressRightNow platform is used to update mailing lists based on the US Postal Service change of address records and to eliminate incorrect mailing addresses. People using this new service will upload a mailing list to a Pitney Bowes Web site, and the mailing addresses and formats get corrected.

There already exists options for large mailers, but this new service addresses a need for small mailers and infrequent mailers.

The cost for the service is  and $60 for the first 1,000 addresses for move update and address verification and $6 for each additional 1,000 addresses. The cost for address verification only is $40 for the first 1,000 addresses. The company also offers the service as an ongoing subscription.

According to Jeff Platt, Director of Solutions Marketing for US Mailing at Pitney Bowes, the service new will help companies meet US Postal Service regulations for updating address lists. Mailing list updates must be applied 95 days before the mailing. As of January 4, 2010, mailings that do not conform to these new Postal rules will be subject to additional postage of 7 cents per assessed piece.

The service allows mailers to fix errors via the Internet and can also check if an address is deliverable plus it can convert rural addresses to city addresses.

When a mailing list is uploaded to the website it can be scanned for issues that lead to undeliverable mail. For example, the service can alert mailers when someone on their lists has moved, and then provide them with new mailing addresses. The new service also has auto-matching capability.

Mailing Lists Direct is a full service direct mail list company where you can find consumer lists, business lists and specialty lists at competitive prices. Mailing Lists Direct provides first rate customer support. No matter what your business needs in the way of an address list or managing your mailing list campaigns, Mailing Lists Direct will be able to satisfy all your needs. Call toll free at 800-741-0116.

The Debate Has Begun

This new law has no effect on direct marketing in the UK currently. Still, debates have begun on websites which discuss whether or not it is a foregone conclusion that all email and direct mail will soon be required to conform to a stricter opt-in policy than is currently enforced. We’d like to contribute to the debate by offering a few points on this issue.

According to UTalkMarketing.com, one person in the marketing and data field, Peter McCormick, co founder and general manager of ExactTarget, feels that the new law is of no concern to organizations whose communications philosophy has the customer at heart. He feels that by having stricter opt-in laws marketers would be guaranteed to only contact warm prospects who were interested in their products and therefore would be more likely to respond.

Cost is a Built-In Incentive For Mailing List Accuracy

While it is generally true that most people don’t want to be flooded with unwanted ‘junk mail’ there is the general idea that out of quantity comes quality. Let’s face it, businesses do have an incentive to use quality mailing lists when sending out direct mail. Each piece costs money and too many dups and too many duds can hammer your ROI. By using an accurate mailing list marketers already have a built-in incentive to make sure their marketing dollar is not wasted.

Direct Mail to Cold Prospects Reaches New Customers

Another point in favor of mass mailing is that without reaching brand new cold contacts, there is no expansion or reach into new territory. Direct mail to cold prospects is an effective way to reach brand new customers who would otherwise not be mailed to if businesses were to only send mailings to ‘warm’ prospects.

Businesses Are Already Required To Remove Names From Mailing Lists

Still, if some prospects absolutely object to receiving unsolicited direct mail, then it would most likely be a waste of money to send a mass mailing to them anyway because they would find it so objectionable that it is unlikely that they would respond to an offer. Most businesses who have any direct mail experience at all have received requests to be removed from future mailings and Postal regulations are already in effect that require this. So it works both ways – the customer is happy and the marketer is happy.

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Small Business Marketing Health Check

OTTAWA, CANADA – In a recent survey conducted by Campaigner.com it was shown that many small business owners are seeing the beginnings of a turnaround in the current economic climate and expect revenue growth. Even though the recession has been a challenge for businesses of all sizes, small business who rise to the challenge and increase their spending on effective marketing actually expect an increase in revenue.

The report is entitled, Small Business Marketing Health Check and is available as a free download in PDF format from the campaigner.com website: http://www.campaigner.com/lp/hurwitz.aspx.

A total of 46% of respondents to the survey said that they anticipate an increase in revenue growth while a total of 32% said that they expect a decline in revenue and 22% expect revenues to remain more or less flat.

The report shows that:

Of the 46% of small businesses who anticipate revenue growth:

• 32% of them expect an increase in revenue of more than 10%
• 14% of them expect an increase in revenue of less than 10%

Of the 32% of small businesses who anticipate revenue decline:

• 14% of them expect a decrease in revenue of less than 10%
• 18% of them expect a decrease in revenue of more than 10%

The report also shows a correlation of revenue growth with marketing spending:

• 65% of small businesses expect revenue growth if they either spend more or plan to spend more on marketing.
• 32% percent of small businesses expect no increase or decrease in revenue if there is no change in their marketing expenditures.
• 36% percent of small businesses expect a decrease in revenue if they spend less on marketing.

The report gets into more detail about how small business are positioning themselves in the marketing arena. They are positioning themselves stronger growth in 2010 through the use of web-based marketing tools. Small businesses are shifting more of their marketing efforts from traditional media to Web-based options.

Email marketing, when used in combination with social media (Twitter, LinkedIn and YouTube, blogs and discussion boards) are growing in popularity and effectiveness. These new marketing tools are generally less expensive to use than traditional marketing initiatives (print advertising, direct mail and mailing lists).

A small investment can help a small business to significantly boost their marketing reach and return. With both email marketing and social networking on the rise, companies should consider how they can integrate the more impromptu nature of social media with more structured nature of email marketing campaigns. the value of both methods can be significantly increased with intelligent and well planned integration.

Mailing Lists Direct is a full service direct mail list company where you can find consumer mailing lists, business lists and specialty lists at competitive prices. Mailing Lists Direct provides first rate customer support. No matter what your business needs in the way of an address list or managing your mailing list campaigns, Mailing Lists Direct will be able to satisfy all your needs. Call toll free at 800-741-0116.

Direct Mail Forecast

CHARLOTTESVILLE, VA – A comprehensive forecast of the use of digital printing in the direct mail market has been undertaken and published by INTERQUEST, a market research and consulting firm that serves the digital printing and publishing industry. The document is entitled Digital Printing in Direct Mail: Market Analysis & Forecast (2008-2013) – 260 pages.

The study contains 155 tables and charts and also provides an assessment of the impact of the financial crisis on the direct mail printing business. It was published in January 2009 and complements a previous study from June, 2008 entitled North American Transactional Printing: Market Analysis & Forecast.

This new study is based on in-depth surveys of 40 leading North American direct mail printers and large mailers. The collective volume of the survey participants interviewed for the report account for about 20% of the total digital direct mail impressions produced in North America.

INTERQUEST President, Gilles Biscos, pointed out that direct mail printing has generally been a bright spot in the printing industry for a some years, now. He has seen some dramatic advancements in recent years – the latest generation of equipment in particular – so he and his company felt that the time was right to take a serious look at how digital printing technology was being used in direct mail.

The study is aimed at industry professionals involved in sales and marketing, product management, engineering and product development, application and technical support, market research and strategic planning, sales and technical training, selection and purchase of printing solutions and printing and publishing operations.

Among the topics undertaken in the study are:

• The state of the direct mail market – both current and future
• The use of digital printing in direct mail – including technologies and applications for black-and-white and color
• Important business issues to consider – such as postage, the environment and legislative matters
• The use of laser and ink jet printing in direct mail
• The impact of promotional transactional applications on direct mail inserts
• The impact on direct mail by the current financial downturn

Business who use marketing lists for their direct mail campaigns will certainly be affected by the conclusions arrived by this new study. The study findings suggest that digital providers should be in a stronger position than non-digital providers and should stand a much better chance to weather the current economic downturn. Providers of direct mail lists who use the new digital printing technology will be on the bleeding edge.

UPS Logo

NEW YORK, NY – The direct mail industry is about to get more competitive – especially for business who use mailing lists for traditional direct mail advertising. United Parcel Service (UPS) is testing a new direct mail service called Direct to Door.

The pilot program is to be conducted in five markets – Chicago, Dallas/Fort Worth, Miami, Phoenix and Washington, D.C. UPS drivers will be delivering boxes containing about 12 premium offers and samples to targeted consumers. Some of the brands participating in the test are Zappos.com, FTD.com, Bed Bath & Beyond and Sephora. Over a dozen brands are said to be participating in the pilot program, according to a recent AdWeek article.

The AdWeek article also emphasizes that UPS feels that its drivers are its secret weapon. Being the world’s largest package delivery company puts its drivers on the doorsteps of more households than any other package delivery service. UPS director of new product development, Lisa Lynn, says that customers trust the drivers and see them all the time. She also states, “We can leverage the familiarity and trust people place in us to help our customers grow their businesses.”

Lynn also added, “There will always be packages that need to be delivered. It’s unique because it’s brought to you by the drivers. That personalized delivery is going to break through the clutter of those other channels.”

If the test is successful, then UPS plans to expand the program and support it with a full-scale marketing campaign. UPS is currently conducting an ad agency search where it is looking for traditional and digital advertising, media planning, media buying and customer relationship management efforts. Estimates on annual media spending by UPS on its brand is $200 million worldwide and more than $100 million in the U.S.

The UPS Direct to Door program will undoubtedly create more competition for companies who buy mailing lists for traditional direct mail and only the future will say exactly how competitive it will be.

The U.S. delegation is headed by Bisa Williams, who is the current deputy assistant secretary of state for Western Hemisphere affairs. The negotiations are being held at the Cuban capital of Havana. Representatives of the U.S. Postal Service were also present.

Since there is no U.S. embassy in Cuba, Washington maintains a U.S. Interests Section in Havana, a spokeswoman for which is Gloria Berbena. Berbena told The Associated Press that this is the first time State Department officials have traveled to Cuba for talks since late 2002.

The talks seem to be pretty hush hush. The Cuban government has no comment on the talks, not even to confirm they are happening … nor will either side disclose exactly where in Havana the talks are being held.

In August 1963, direct mail service between the U.S. and Cuba was suspended. Washington imposed its embargo a year later. Because of the ban on direct mail, a letter currently mailed between the two nations can only arrive by first going through a third country like Mexico or Canada … with a little bit of luck … maybe. Still, it can sometimes take months for letters to arrive.

The U.S. first attempted to restore direct service in 1999, then tried again in 2000, 2002 and 2008. Cuba finally accepted in May, of this year and agreed to host the talks when representatives from U.S. and Cuba met in New York in July when the bilateral talks on migration were held.

According to the Associated Press, Berbena stated that the talks would be limited only to direct mail service and that the talks were expected to take all day.  Berbena said that the Obama administration sees the talks “as a potential avenue to improve communication between our countries’ peoples.” The outlook does appear to be optimistic for families who are separated by this political divide and for users of mailing lists in general.

Direct mail to Cuba stopped in 1963, and since then mail has had to go through other countries. Diplomats have now arranged to meet in Havana to discuss the renewal of direct mail between the countries to put an end to rerouting direct mail through Canada or Mexico. President Obama would like to improve relations between the U.S. and Cuba. He has taken measures to see if the Cuban leadership is interested in participating. One such step taken involves the support of a recent decision by the Organization of American States to reverse its position in 1962 to suspend Cuba from the 34-country group.

This is also big news for suppliers of mailing lists and for businesses that buy mailing lists. Restoring direct mail service between U.S. and Cuba has been an issue that has thwarted previous presidents, including George W. Bush and Bill Clinton. Previous attempts had been stalled by the Cuban government. Experts say that it would not only be a big step for families that have been divided but also would be a politically critical move. The decision to have the direct mail talks comes just after migration talks in New York in July.

In a Sep 1st article from the Miami Herald, Cuba expert Phil Peters from the Lexington Institute,  a Virginia research center, stated that there is a big difference this time and that Cuba was never able to agree to talk about it and now it seems like Cuba has agreed to talk about it. Peters also said that this is important “Within the context of Cuba and all the divided families,”  and that it was also very symbolically important.

The Miami Herald article also mentions Cuban writer Manuel Vázquez Portal who says that a letter that  should take only three days to arrive can take three or four months.  He also emphasizes that this has bigger meaning because if he wants to communicate to his family in Cuba he is not restricted to calling them by phone or sending them an e-mail.

Vázquez Portal also points out that mail doesn’t get there by magic but that it gets there on ships and planes, and that mail arriving on more ships and more planes has a very important commercial and political meaning. He says, “This is the tip of the iceberg.”

John Jay Daly - Family Photo

LONDON – A PR man from Washington, John Jay Daly, who was credited as the inventor of the concept that consumers could opt out of direct mail, has died of heart disease at the age of 80.

The US Congress was considering legislation in 1970 that would have restricted direct mail by requiring companies to get an explicit opt-in for each household.

Daly, who was then the deputy chairman of the US Direct Marketing Association, came up with a plan that would allow companies to continue to send direct mailings to consumers and allow them the choice of opting out of direct mailings by sending a postcard to a central address and have their names removed from mailing lists.

His idea was later used when establishing the national ‘do-not call’ lists and when applying the ‘unsubscribe’ option for email lists.

According to his obituary in the Washington Post, some of his contemporaries were concerned that the policy would kill the direct-mail industry, but they actually discovered that many people really wanted to receive direct mail advertisements. The result was that marketers could focus their campaigns on people who were actually interested in their products and could avoid wasting postage and printing on people who did not want to be on a mailing list.

Daly made a living representing clients before Congress and referred to himself as  a “postalologist” because of his thorough knowledge of postal regulations and postal commissions.

Mailing Lists Direct is a full service direct mail list company where you can find consumer lists, business lists and specialty lists at competitive prices. Mailing Lists Direct provides first rate customer support. No matter what your business needs in the way of an address list or managing your mailing list campaigns, Mailing Lists Direct will be able to satisfy all your needs. Call toll free at 800-741-0116.

Understanding sales and income is necessary but it is only half of the equation. When using mailing lists to expand your business it is vital to keep track of the costs as well as the income. By tying the cost of each promotional activity directly to its income, you will be able to determine the profitability of your marketing campaigns and be able to make better decisions on how to buy mailing lists.

ROI – Return on Investment

Nowadays one hears a lot of buzz about ROI. What exactly is ROI, anyway? It is the return on investment of your advertising expenses. Are your mailing list campaigns profitable or not? How are you going to know? The only way you will be able to determine if your marketing investments are making any money is if you track them one by one. It is absolutely crucial that you keep good records. On the income side, you used your invoice ledger to identify all sources of income by categorizing each invoice according to the source of its sales lead. Now on the flip side, you categorize your promotional expenditures according to the marketing campaigns used to generate the sales.

The Expense Ledger

Shown below is a chart of sales expenses for one year that was collected from the expense ledger. You list out all the same sales lead categories that were used in your invoice ledger. In this case we have categories for printing, phone, trade shows, ads, direct mail and miscellaneous. We are going to have to do some estimating here because some of the printing expenses were general in nature while others were tied to specific marketing campaigns. But you can get the idea.

Click to enlarge

Graph the Results

After you have identified the sales expenses for all the promotional activities, you can tie it all together and determine the profitability of each marketing campaign (or lack of it). The thing that’s nice about a graph is that you can spot the winners and losers in an instant. Now that you know if your mailing list campaigns are making money or not, you can make better decisions on how to buy mailing lists.

Click to enlarge

Now, please bear in mind, when you look at results like these not to panic and do anything rash! If a particular promotion didn’t pan out, it doesn’t automatically mean that you have to abandon it. Sometimes you have to go back to the drawing board and come up with a “Plan B.” You should have a feel for your industry, your competition and the various media outlets and marketing channels available to your business. Your experience, abilities, knowledge and confidence should guide the decision making process.

If you find that the return on some of your promotional expenses is not as profitable as it should be, then ask yourself, “Are there any competitors in my industry that are successful?”; “What are they doing that I’m not?” Try to figure it out. Watch your competitors very closely. On the other hand you might be doing something that is very successful that your competition is completely unaware of or is unable to do. In that case, you’ve got a trade secret and you need to keep it that way.

Winners and Losers

In the previous example, several of the sales categories are pulling some pretty healthy ROI. Phone sales, field sales, referrals, repeat sales and direct mailings are all very profitable. They are all pulling income in the multiples of their expenses. This is a bean counter’s dream. The areas that need improvement are trade shows and magazine ads.

Use This Information to Help Expand Your Business

As you can see from this series of articles, it isn’t difficult to use your income and expense ledgers as marketing tools to help expand your business. This should serve as an example and give you some ideas on how to implement good record keeping in your business and be able to identify the profitable vs. unprofitable promotional activities. Surely you should be able to use mailing lists to expand your business. Most any business should be able to benefit from a well thought out direct mail campaign.

Mailing Lists Direct is a full service direct mail list company where you can find consumer lists, business lists and specialty lists at competitive prices. Mailing Lists Direct provides first rate customer support. No matter what your business needs in the way of an address list or managing your mailing list campaigns, Mailing Lists Direct will be able to satisfy all your needs. Call toll free at 800-741-0116.

Mike Doughty is a small business owner and entrepreneur with a background in direct mail marketing, manufacturing and distributon. During his career, he produced a mail order catalog and worked on many successful direct mail campaigns.