Expectations Decline - Only 37 Percent of U.S. Small Business Owners Predict Strong Valentine's Day Sales in 2007 - According to Constant Contact Survey.

Sixty-four percent of small businesses anticipate stronger online sales

Fifty-three percent plan seasonal promotions, favoring online methods over traditional print and advertising

WALTHAM, Mass. -- While love is in the air this Valentine's Day season, many U.S. small businesses owners do not expect to find it in their cash registers. According to Constant Contact's 2nd Annual Small Business Valentine's Day Outlook(a) survey, 37 percent of U.S. small business owners anticipate a strong 2007 Valentine's sales season - down from 55 percent in 2006. Constant Contact([R]) (www.constantcontact.com) is the leading email marketing service for small businesses, associations, and nonprofits.

"This year's survey shows more conservative predictions among U.S. small business owners for Valentine's Day sales," said Gail Goodman, CEO of Constant Contact. "The good news is that U.S. small business owners anticipate more online sales this Valentine's Day. This focus, awareness, and continued investment in online marketing methods will greatly enhance small businesses' ability to build strong relationships with their current and prospective customers and compete effectively against big businesses."

Small Business Valentine's Day Marketing Plans

Valentine's Day, like other gift-giving holidays, is quickly becoming an online-shopping occasion. Despite a decline in optimism for 2007 Valentine's Day sales, 64 percent of U.S. small business expect stronger online sales for Valentine's Day 2007. In addition, the majority of them (53 percent) plan to run special sales and marketing promotions, with online marketing methods largely favored over traditional print and advertising. Email marketing ranked as the most popular method mentioned by 66 percent of respondents; followed by other online methods including paid search and banner ads (32 percent), direct mail (16 percent), flyers (16 percent), and TV, radio and newspaper advertisements (12 percent).

In terms of anticipated business impact, eight percent of small business owners expect sales on Valentine's Day itself to increase dramatically when compared to a normal business day - with expected sales increases ranging from 50 percent to more than 100 percent.

Valentine's Day Consumer Purchasing Trends

According to U.S. small business owners, a vast majority of their customers (85 percent) typically spend less than $75 on Valentine's Day purchases, with most respondents (53 percent) expecting their customers to spend less than $25 at their particular business.

What can people expect from loved ones this year? "Flowers" are a good bet. A majority of small business owners (51 percent) predict they will be the most popular gift purchased this Valentine's Day season. "Dinner" ranked next popular (18 percent), followed by "jewelry" (15 percent), "chocolate" (14 percent), and "clothing" (2 percent).

Sample questions and results from Constant Contact's 2nd Annual Small Business Valentine's Day Outlook(a) survey, include the following:

"Do you anticipate a strong Valentine's Day season in sales for your business?"

Yes  37%
No   63%

"Do you think that, in general, consumers will be making more purchases online for Valentine's Day in 2007?"

Yes  64%
No   36%

"How much do your customers (per individual) typically spend on Valentine's Day gifts?"

Less than $25         53%
Between $25 and $50   20%
Between $50 and $75   12%
Between $75 and $100  7%
More than $100        8%

"What do you think will be the most popular item during this year's Valentine's Day season?"

Flowers     51%
Dinner      18%
Jewelry     15%
Chocolates  14%
Clothing    2%

"Are you planning promotional offers for Valentine's Day?"

Yes  53%
No   47%

"What marketing methods will you use to promote your Valentine's Day offerings?" (Check all that apply)

Email marketing                     66%
Online marketing                    32%
Direct mail                         16%
Flyers                              16%
Advertising (TV, radio, newspaper)  12%

For more information about the survey or for additional results, please contact Kevin Mullins at 781-472-6206, or by email at [e-mail]

(a)Constant Contact's 2nd Annual 2007 Small Business Valentine's Day Outlook survey was conducted through targeted online distribution to U.S. small business owners who are current customers of Constant Contact, recording results from more than 1,000 respondents. The survey was conducted from December 29, 2005 through January 10, 2006.

About Constant Contact, Inc.

Launched in 1998 and headquartered in Waltham, Mass., Constant Contact, Inc. is the leading email marketing service for small businesses, associations, and nonprofits. With more than 90,000 customers today, Constant Contact helps small businesses and organizations succeed in building lasting customer relationships through professional email communications. To learn more, please visit www.constantcontact.com or call [phone].

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