STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 10, 1999--Mail plays a critical role in the rapidly growing Internet economy, according to a new study of companies conducting e-commerce. Commissioned by Pitney Bowes Inc. (NYSE:PBI) Mailing Systems Division, "The Role of Mail in E-commerce Study" revealed that half of the companies surveyed had increased their volume of mail as a result of e-commerce activity. And, like their "brick and mortar" counterparts, these e-commerce businesses use mail for advertising, promotion, billing, fulfillment and for building customer relationships.

Of the companies surveyed that have experienced increased mail volume due to e-commerce, 59% have seen a significant increase (11% or more). And, when asked which methods they use to promote the company's e-commerce website, the vast majority of the companies cite direct mail (70%) compared to Internet advertising (48%) and e-mail (57%). The study also revealed that direct mail is considered the most effective tool for getting customers to go to a web site and place an order, and it is nearly as powerful as Internet advertising in encouraging website visits or "hits".

"Mail is a powerful engine for the Internet economy and the new millennium," said Tim Bates, Vice President, Marketing, Pitney Bowes Mailing Systems. "This study reveals that mail is a valuable tool for developing awareness, sales and, most importantly, customer relationships. And, when these attributes of physical mail are linked with the reach of the Internet, the combination is unbeatable."

According to the survey, 38% of companies expect their e-commerce business to at least double within the next three years. This trend suggests that the volume of mail will also continue to rise since mail is instrumental in fulfilling Internet orders and confirming e-transactions. Thirty-seven (37%) percent of companies surveyed said they use physical mail to send confirmations for e-commerce orders, and 38% said they invoice customers for e-commerce orders using the mail.

A major finding of the study was that, by a two-to-one margin, companies engaged in e-commerce stated that direct mail was the best medium for developing long term customer relationships. It's not surprising then that on average 43% of the total marketing budget, for the respondent firms, is committed to direct mail initiatives, compared to Internet advertising (21%) and e-mail (8%) categories. According to the surveyed companies, each of these budgets are expected to increase over the next three years, with direct mail projected to grow by 25%, Internet promotions growing 34% and e-mail solicitations rising 38%.

"Smart companies that are working to establish an e-commerce presence are doing so with a sophisticated direct mail strategy," said Bates. " Powerful web servers, snazzy websites and data mining need to be supported with a clear, targeted direct marketing plan, and the companies that effectively establish this marketing mix will succeed."

The survey was conducted in August 1999 by Information for Marketing, and input was gathered from 125 companies. The study respondents were CEO's or marketing executives of companies that currently have total sales revenue of $1 million or more annually, and they are actively engaged in e-commerce. In addition, the respondents were identified as having responsibility for Internet sales or e-commerce.

Pitney Bowes Inc. is a $4.2 billion premier provider of informed mail and messaging management. For more information about the company, please visit our Web site at: www.pitneybowes.com.