Consumers Demand More Targeted Mail; Study Reveals That ''Smart'' Mail Fosters Stronger Customer Relationships and Continued Business.

STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 4, 1999--

The majority of U.S. consumers surveyed said they are more likely to establish relationships with businesses if direct mail is targeted to their tastes and interests, but they also report that less than 20 percent of the direct mail they get is "smart" or targeted. These are two of the significant findings of the "Smart Mail" study commissioned by Pitney Bowes Mailing Systems, a division of Pitney Bowes Inc. (NYSE:PBI).

Fifty-seven (57%) percent of consumers surveyed reported that mail -- comprised of letters, newsletters, postcards and catalogues -- that is targeted to their tastes and interests would have "some impact" or a "very high impact" on their relationships with a business. More than a third (36%) of consumers surveyed stated that they continue to do business with specific companies because of targeted or "smart" mail.

"With U.S. companies investing more than $39 billion last year in direct mail campaigns, there needs to be a more concerted effort to target mailings in order to improve their results," said Tim Bates, Vice President of Marketing, Pitney Bowes Mailing Systems. "Extensive research shows that mail is the best marketing vehicle available, but companies need to focus on making this powerful communications channel even more effective. Many business mailers already understand a simple but important fact: personalized, targeted direct mail leads to loyal customers and repeat business."

Because so much of what they receive is not directed to their interests, an average of 44% of direct mail received by consumers is thrown away without opening it. Study findings also indicate that the openability of mail starts with the appearance and addressing of the envelope. In fact, four out of ten consumers surveyed said having their full name printed correctly on the envelope is "very important" or "extremely important", and 23% said having their name mentioned in letters is "very important" or "extremely important."

The Pitney Bowes survey of 1,017 random U.S. households was conducted by International Communications Research (ICR). Pitney Bowes is a $4.2 billion premier provider of informed mail and messaging management. For more information, please visit our Web site at www.pitneybowes.com.