FIFTY-FIVE PERCENT OF U.S. SMALL BUSINESS OWNERS ANTICIPATE STRONG SALES FOR MOTHER'S DAY IN 2008, ACCORDING TO CONSTANT CONTACT SURVEY

Mother's Day holiday sales forecasts for U.S. small businesses mixed amid challenging economy

WALTHAM, MA - April 28, 2008

News of economic woes has not completely discouraged U.S. small business owners as they look ahead to Mother's Day shopping. According to Constant Contact's 3rd Annual Small Business Mother's Day Outlook survey*, 55 percent of U.S. small business owners anticipate strong sales this Mother's Day holiday. This represents a decrease of 18 percentage points from sales expectations in 2007, when 73 percent of U.S. small business owners anticipated strong Mother's Day shopping season sales. Constant Contact®, Inc. (NasdaqGM: CTCT) is a leading provider of email marketing and online surveys for small organizations.

While U.S. small business owners' expectations for strong Mother's Day holiday sales have waned over last year's survey, many of them are, in fact, predicting higher sales in 2008. According to the survey, 44 percent of U.S. small business owners anticipate Mother's Day sales in 2008 will be higher than sales last year, while 34 percent anticipate sales to remain the same and 22 percent expect sales will be lower.

More Small Businesses Publicize Mother's Day Promotions

A notable 77 percent of surveyed U.S. small business owners are planning promotional offers for Mother's Day. Furthermore, a strong majority (88 percent) plan to reach out to their customers this year with special Mother's Day email marketing promotions in an effort to capture more business, similar to last year's 86 percent. Other marketing methods, including online marketing (24 percent), flyers (24 percent), direct mail (23 percent), and TV, radio, or newspaper advertising (21 percent), follow email marketing.

"Despite reports of curtailed consumer spending, most small businesses recognize the importance of Mother's Day and don't expect consumers to cut these purchases," said Gail Goodman, CEO of Constant Contact. "Many small businesses are seizing this opportunity to connect with the people who already know and trust their business - their current customers. In fact, our survey indicates that a majority of businesses plan to use cost-effective tools like email marketing to help their customers find meaningful Mother's Day gifts."

Economic Stimulus Payments Unlikely to Boost Sales, Say U.S. Small Business Owners

According to surveyed U.S. small businesses, a majority (62 percent) do not expect the economic stimulus payments, slated to be sent in May to more than 130 million households, to increase sales for their business. This figure is in line with other reports**, that indicate that a majority of consumers will elect to pay bills or buy necessities, rather than other discretionary purchases.

Nevertheless, mothers will be celebrated - according to the survey, mothers can expect to be on the receiving end of traditional Mother's Day gifts again this year. The most anticipated purchases are flowers (37 percent), followed closely by a meal at a restaurant (25 percent), a salon/spa appointment (21 percent), jewelry (13 percent), and clothing (4 percent). In addition, small businesses report that the majority of their customers (75 percent) typically spend $25-$75 each on Mother's Day gifts.

U.S. small businesses also continue to expect online sales to play a large role in this year's Mother's Day sales as more than half (63 percent) expect an increase in online purchases this year.

Below are sample questions from Constant Contact's 3rd Annual Mother's Day Outlook survey. The full results of the survey are available online: http://img.constantcontact.com/docs/pdf/Mothers_day_survey_FINAL.pdf

 

Do you anticipate a strong Mother's Day season in sales for your business?
Yes	55%
No	45%

Do you anticipate your Mother's Day sales to be higher or lower in 2008 versus last year?
Higher	44%
Lower	22%
Remain the same	34%

What do you think will be the most popular item during this year's Mother's Day season?
Flowers	37%
Meal at a restaurant	25%
Spa/salon appointment	21%
Jewelry	13%
Clothing	4%

Do you feel that the U.S. tax stimulus refund being sent out in May will help increase sales for your business?
Yes	38%
No	62%

*The 2008 U.S. Small Business Mother'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 March 29, 2008 through April 9, 2008.

**PNC Economic Outlook survey: http://www.pnc.com/eos; H&R Block Survey: http://www.hrblock.com/press/Article.jsp?articleid=1520

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Please direct all press inquiries to:

Rosalind Morville
Constant Contact
339-222-5772
rmorville@constantcontact.com

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