SEVENTY PERCENT OF SMALL BUSINESSES ANTICIPATE GROWTH IN 2009 ACCORDING TO SURVEY

Constant Contact 2009 Small Business Attitudes & Outlook Survey with ACCE,SCORE and SBDC partners reveals optimistic outlook among small businesses

Waltham, MA - June 18, 2009

Seventy percent of small businesses anticipate moderate to significant growth in 2009, according to the Small Business Attitudes & Outlook Survey conducted by Constant Contact^®, Inc. (NasdaqGM: CTCT), a leading provider of email marketing and online surveys. Constant Contact conducted the survey in collaboration with the American Chamber of Commerce Executives (ACCE), SCORE and the Association of Small Business Development Centers (ASBDC), organizations dedicated to the success of small businesses. This first-of-its-kind collaboration ensured broad representation of small business respondents and helped obtain insight into the current attitude of the small business community.

"The results of the survey reveal the optimism and perseverance that so often marks this spirited group of business owners, as well as their adaptability to meet current economic conditions," said Gail Goodman, CEO and chairman, Constant Contact. "These companies show us all what it takes to succeed in any economic climate. We are grateful to our partners in the survey, which has given us an encouraging glimpse into the minds and attitudes of today's small businesses."

Small Businesses Anticipate Growth in 2009

The survey respondents' generally optimistic outlook on growth is further highlighted by the fact that of those customers that expect to grow moderately or significantly in 2009, 47 percent expect to hire additional employees.

In 2009 do you expect your business to?

 

If growing significantly or moderately, do you plan on hiring additional employees this year?

Small Businesses Secure Funding in Tight Lending Market

Additionally, of the 15 percent of respondents that sought and secured additional financing in the past 12 months, 69 percent received funding from banks in what is perceived to be a historically tight lending market.

As Costs Increase Small Businesses Look for New Efficiencies

According to the survey, 59 percent of surveyed businesses indicated an increase in the overall cost of doing business over the last 12 months. The top areas affected by increased costs include materials and supplies (65 percent), marketing (49 percent) and taxes (44 percent).

In response, small businesses are cutting back, but are focusing predominantly on overall operating costs (49 percent) and travel and entertainment (37 percent) rather than headcount reductions.  

How has your cost of doing business changed in the last 12 months?

 

In which areas of your business have you seen an increase in costs during the last 12 months?

 

Have you taken any of the following actions in response to the current economy?

Small Businesses Market Smarter

According to survey results, more than 70 percent of small business respondents felt the biggest challenge in running their businesses was marketing effectively with limited resources. Respondents identified marketing (62 percent) and sales and new business development (50 percent) as the areas in which they need the most help.

Twenty-nine percent of survey respondents indicated they have reduced their spending on marketing, but are taking advantage of less expensive online marketing methods including email marketing. Seventy-four percent of surveyed businesses said they regularly conduct outbound communications; of which 97 percent use email marketing and 68 percent use a website.  

Do you conduct outbound communications with your customers on a regular basis?

 

If yes, what avenue do you use to conduct your outbound communications?

Small Businesses Make Small Steps Toward Social Media

Small businesses that have been in business for 10 or more years find it more difficult to keep up with new technologies (28 percent). Those mature businesses are also more likely to rely on traditional marketing methods such as direct mail. Newer companies (those who have been in business for one to five years) are more likely to use social media tools such as blogs, Facebook and LinkedIn.

 

How do you feel you are keeping up with technology?

 

Survey results also indicated that social media tools have begun to penetrate small business? communications strategies; however, few small businesses use these tools regularly, though many indicate an interest in doing so.

Are you using any of the following online tools to market your product or service?

 

How the Survey Was Conducted

The 2009 Small Business Attitudes & Outlook Survey was conducted through a targeted online distribution to U.S. small business owners. Results from more than 3,000 respondents were recorded. This survey was conducted from April 30, 2009, through June 12, 2009. For full survey results, please cut and paste the following URL into your browser: http://img.constantcontact.com/docs/pdf/US_Small_Bus_Survey.pdf.

About SCORE Since 1964, SCORE "Counselors to America's Small Business" has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. More than 10,500 volunteer business counselors in 389 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses.

 

For more information about starting or operating a small business, call 1-800/634-0245 for the SCORE chapter nearest you. Visit SCORE on the Web at www.score.org.

About ACCE

Established in 1914, ACCE is the only national association serving the professional development needs of chamber professionals throughout the United States and Canada. Representing more than 7,000 individuals, ACCE enhances the knowledge, leadership skills, and management effectiveness of chamber executives and their staff through education, benefits programs, trend analysis, benchmarking, and network development. ACCE supports and develops chamber professionals to lead businesses and their communities. For more information on the American Chamber of Commerce Executives and all its resources, send questions via email form or call 703-998-0072.

About Association of Small Business Development Centers

Established through a public/private partnership by Congress in 1980, the Small Business Development Center program is the most comprehensive, efficient and effective business assistance network in the nation. Their mission is to help new entrepreneurs realize their dream of business ownership and existing businesses remain competitive in the complex marketplace of an ever-changing global economy. Over 1,100 local SBDC offices extend entrepreneurial education to meet small business needs, through individual counseling, training and research assistance while serving over 1.3 million clients annually, creating over 74,000 new jobs, and generating $500,000,000 in new tax revenues. Based in universities, colleges and economic development agencies, SBDCs are funded by state and local partnerships to match US Small Business Administration support. For more, please visit http://www.asbdc-us.org/index.html.

About Constant Contact, Inc. Launched in 1998, Constant Contact, Inc. is a leading provider of email marketing and online survey tools for small organizations, including small businesses, associations, and nonprofits. To learn more, please visit www.constantcontact.com or call 781-472-8100.

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements related to the introduction of Constant Contact AppConnect and its potential uses. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections, as well as the beliefs and assumptions of our management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms, and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Constant Contact's control. Constant Contact's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the Company's ability to attract new customers and retain existing customers; the Company?s dependence on the market for email marketing services for small businesses, nonprofits, and associations; general economic conditions and economic conditions specifically affecting the markets in which the Company operates; adverse regulatory or legal developments; the Company?s ability to continue to promote and maintain its brand in a cost-effective manner; the Company's ability to compete effectively; the continued growth and acceptance of email as a communications tool; the Company's ability to develop and successfully introduce new products or enhancements to existing products; the Company's ability to manage growth; the Company's ability to attract and retain key personnel; the Company's ability to protect its intellectual property and other proprietary rights; and other risks detailed in Constant Contact's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 filed with the Securities Exchange Commission ("SEC") on May 8, 2009, as well as other documents that may be filed by the Company from time to time with the SEC. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Constant Contact?s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Constant Contact undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Constant Contact's views as of any date subsequent to the date of this press release.

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