More Small Businesses Plan to Woo Customers This Valentine ’s Day

With signs of a slowing economy, a majority of surveyed U.S. small businesses (68 percent) plan to reach out to their customers this year with special Valentine ’s Day promotions in an effort to capture more business, a marked increase over last year ’s 53 percent.

“Even with a slowing economy, many small businesses recognize Valentine ’s Day as an opportunity to attract customers and it ’s not surprising that more of them are relying on cost-effective ways to market themselves to current and prospective customers this year, ” said Gail Goodman, CEO, Constant Contact. “While tools like email marketing can have a large impact on businesses during any economic climate, they are particularly important when consumers are faced with many choices for their Valentine ’s Day spending. ”

Nearly half (44 percent) of respondents consider Valentine ’s Day an important holiday for their businesses and are relying on cost-effective marketing methods to get their promotions out. Email marketing (42 percent) was identified as the primary marketing method, followed by online marketing, including paid search and banner ads (20 percent). These methods far exceed other more costly traditional methods such as direct mail (nine percent) and print advertising (seven percent). Forty-two percent of respondents also credit email marketing as having the greatest impact on driving sales, an increase from 38 percent in 2007.

Valentine ’s Day Purchasing Trends

According to surveyed U.S. small business owners, Valentine ’s Day consumers are last-minute shoppers. In fact, 46 percent expect their customers to shop the week of Valentine ’s Day, with 11 percent waiting until the final day to pick up gifts. In terms of anticipated spending, Valentine ’s Day shoppers are not expected to be as thrifty this year as they were last year. In 2007, 53 percent of small businesses said their customers would spend less than $25, whereas in 2008 only 39 percent expect their customers will spend this total on a token of their affection.

Small businesses also expect online sales to play a large role in this year ’s Valentine ’s Day sales. More than half (59 percent) expect online sales will increase this year.

According to U.S. small businesses, consumers can expect to receive traditional gifts from their loved ones this year. Although still the most anticipated gift, flowers dropped in popularity from 51 percent last year to 41 percent this year. “Dinner ” ranked next in popularity at 23 percent – up five percentage points from last year, and jewelry was predicted to be the most purchased item by 18 percent of respondents, followed by chocolate at 14 percent.

Sample questions and results from Constant Contact ’s 3rd Annual Small Business Valentine ’s Day Outlook* survey are available online and include the following:

* The 2008 U.S. 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 600 respondents. The survey was conducted from December 31, 2007 through January 9, 2008.