New Constant Contact research indicates
Canadian small businesses are missing a valuable opportunity to
reach customers and prospects
As the one-year anniversary of Canada’s Anti-Spam Legislation
(CASL) draws near, new research from Constant Contact®, Inc.
(NASDAQ: CTCT) underscores the continued importance of email
marketing to both small businesses and the consumers they serve.
Contrary to popular belief, Canadian consumers rate email as their
number one method for staying in touch with businesses…and by a
long shot. Sixty-eight per cent prefer email compared to just 12
per cent who prefer staying in touch via telephone, 8 per cent via
mail, 7 per cent via in person conversations, and 5 per cent via
social media. The issue? Not all Canadian small businesses are
maximizing their email marketing efforts and almost 40 per cent
aren’t taking advantage at all.
“Canadian consumers are saying loud and clear that they want to
stay in touch with businesses, and that they want to do so through
email,” said Lisa Kember, regional director for Canada East at
Constant Contact. “This is major validation for the businesses that
are already leveraging email marketing and a wake-up call for those
that have yet to get started. When it comes down to it, email
marketing is really the only channel where businesses own the
relationship with their contacts. With email, unlike social, you
are guaranteed to get your message directly in front of your
audience—in their inbox.”
Small Business Email Marketing: Room for ImprovementThe
research shows that while the majority of small businesses (63 per
cent) use email to stay in touch, 61 per cent of them use mailbox
providers like Gmail™ and Outlook®, rather than an email marketing
service provider, to do so. That’s a problem, because those mailbox
providers offer no way to maintain CASL compliance, through
features like permission tracking, CASL-compliant email list signup
forms, and unsubscribe functionality. Nor do they maximize
marketing efforts through mobile-responsive templates, list growth
tools, and results tracking.
“The good news here is that small businesses are reaching
consumers where they want to be reached. That said, like any
marketing effort, you need data to know if what you are doing is
working. Are people opening your emails and clicking on your links?
Who is subscribing and unsubscribing? Mailbox providers like Gmail
and Outlook aren’t designed to do that,” said Guy Steeves, regional
director for Canada West at Constant Contact. “Perhaps even more
importantly, there is a higher bar for any business using email
marketing today, making it more important than ever that they take
advantage of the email technology that’s been designed to keep them
on the right side of CASL compliance.”
Then there’s the 37 per cent who aren’t using email at all. Only
19 per cent of those are considering adding email to their
marketing mix this year, a clear missed opportunity in light of the
survey results.
Consumers: Hanging Out in the InboxNot only do Canadian
consumers prefer to stay in touch with businesses via email, they
also spend a whole lot of time in their email inbox – to the tune
of 1.2 hours a day. Eighty-four per cent check their email at least
twice per day, with 38 per cent of those checking six or more
times. That’s a lot of missed opportunities for those small
businesses not using email marketing.
Why do consumers choose to subscribe to a business’s email list?
Their top reasons are:
- Receive discounts and special offers
(71 per cent)
- Take part in specific promotions (38
per cent)
- Stay informed on an ongoing basis (36
per cent)
Sixty-six per cent are equally likely to sign up for email
marketing correspondence from national and local businesses.
CASL Has Minimal ImpactSurvey results indicate that much
has remained unchanged in a post-CASL world, despite the hype
leading up to the start of enforcement in July 2014. Most small
businesses (70 per cent) have continued to use email marketing as
they had always done, and some have even increased their efforts (9
per cent) or started email marketing for the first time (6 per
cent). Only 13 per cent have decreased their email marketing
activity and just 2 per cent have stopped altogether.
List size has remained mostly consistent with a pre-CASL world.
Sixty-five per cent of small businesses’ mailing lists have stayed
the same post-CASL, while 25 per cent have decreased list size and
10 per cent have increased list size. CASL has also had minimal
impact on business metrics for individual small businesses, who
stated that the effect on customers, prospects, profitability,
gross revenue, and overall success largely remained unchanged.
“CASL is rooted in the best practice of permission-based
marketing, so it’s not shocking that small businesses have not seen
an adverse impact on business,” said Kember. “While some
modifications may have been necessary initially, it seems that one
year out, the impact has been much less than previously feared and
the value of email marketing remains stronger than ever.”
To learn more about Constant Contact or start a free trial,
click here.
About the DataThis data was compiled from two Constant
Contact-sponsored surveys, deployed to a Research Now panel of 501
Canadian small businesses and 502 Canadian consumers in April 2015.
These surveys are part of an ongoing series addressing the impact
of CASL for small businesses across Canada.
About Constant Contact®, Inc.Constant Contact introduced
the first email marketing tool for small businesses, nonprofits,
and associations in 1998. Today, the company helps more than
600,000 customers worldwide find marketing success through the only
all-in-one online marketing platform for small organizations.
Anchored by our world-class email marketing tool, Constant Contact
helps small businesses drive repeat business and find new
customers. It features multi-channel marketing campaigns
(newsletters/announcements, offers/promotions, online listings,
events/registration, and feedback) combined with shared content,
contacts, and reporting; free award-winning coaching and product
support; and integrations with critical business tools – all from a
single login. The company’s extensive network of educators,
consultants/resellers, technology providers, franchises, and
national associations offer further support to help small
organizations succeed and grow. Through its Innovation Loft,
Constant Contact is fueling the next generation of small business
technology.
Constant Contact and the Constant Contact Logo are registered
trademarks of Constant Contact, Inc. All Constant Contact product
names and other brand names mentioned herein are trademarks or
registered trademarks of Constant Contact, Inc. All other company
and product names may be trademarks or service marks of their
respective owners.
(CTCT-F)
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version on businesswire.com: http://www.businesswire.com/news/home/20150601005222/en/
Constant ContactMedia Contact:Erika Tower,
781-482-7039pr@constantcontact.comorInvestor
Contact:Jeremiah Sisitsky,
339-222-5740ir@constantcontact.com
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