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Pitney Bowes Study Points to New Ways for Businesses to Strengthen Relationships With Households

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 13, 1999--Pitney Bowes Inc. (NYSE: PBI) announced important new findings regarding the state of messaging in households, as preferences for different technology tools and an increasing flow of messages have changed communications patterns for many families. According to the groundbreaking Pitney Bowes Household Messaging Study, the first study of its kind, households are hubs of rapidly changing messaging activity with strong links to friends, family and businesses.

One of the major findings from the study that affects the changing relationship between businesses and consumers is the recognition that households are not a homogeneous unit. The study found that different members of a household are likely to not only want different information but also to have different communication practices and tool preferences, depending on factors such as age, gender and familiarity with tools.

"Businesses have real opportunities to fine-tune their communications strategies for household audiences they've worked so hard to reach," said Meredith Fischer, co-author of the research findings and vice president, Corporate Marketing, Pitney Bowes Inc. "Different members of a household have different interests and also prefer to receive messages in different formats. They cannot be treated as a single unit and it's important for businesses to understand and adopt the communications patterns that work for the varied habits of individual consumers within households."

The study showed that while 55% of all household communications are with "friends and family," as much as 42% of household communications are with businesses. This large volume of communications is not only the acquisition of goods and services; it's also communication to family members in their role as employees. In addition to the flow of information concerning employee benefits, workers now regularly contribute to projects on the road or from home. Workers are also in touch with family and friends, and reach out to other businesses for "home-based" reasons during the workday. Essentially, the distinction between professional and personal communications has become blurred as the time of day and geography no longer dictate the content of messages.

"Households need and want information from businesses, but they want it timed and matched to their interests and in the format they prefer," Fischer said. "This perfect, tailored one-to-one marketing is a huge boon to both business and households, cutting costly `shotgun' marketing for firms and reducing unnecessary information and interruptions for the home."

According to the study, communications with friends and family are also often related to business issues because consumers want to authenticate information, evaluate different products or services, receive referrals, or share purchasing strategies. Households develop close relationships, even friendships, with local businesses, vendors, schools, or public organizations, and consistently seek information from businesses using a variety of channels and technologies.

The study found that 61% of households with Internet access regularly visit company or product sites when online, and 47% do research about product purchases when online. According to Fischer, households develop clear preferences concerning how and when they like to receive information. The study found that the most preferred method of all households to receive offers from businesses is through regular mail (61%). Mail was followed by TV or radio (22%), the phone (9%) or e-mail (7%). Well-timed business communications that either contribute to a household's basic social desires to connect with friends, or get source information on new products are welcome; otherwise, business solicitations run the risk of being perceived as disruptive.

Fischer points out that companies need to be aware of the differences that can exist in every household and should focus on creating products and services that can be adapted to fit the preferences of each individual customer. For example, men and women prefer to receive communications via different methods. Men are more likely to choose e-mail and Internet access as their favorite methods and women are significantly more likely to choose the telephone. Additionally, the reasons for using technology differ by age. The oldest and youngest groups are motivated to communicate with friends and family, while the middle age group, in the peak of careers and raising a family, places high value on technology for their children and work use.

High Volume Households Are Primary Business Targets

The study found a significant category of "high-volume" households that send and receive more than double the number of messages a week (240) as the average household (115). These households also use nearly twice the communications tools (six) as the average household, their email usage is almost four times higher and they receive twice as much mail as average households.

These households communicate more, search for more information and spend more time online. All this makes them prime targets for businesses, non-profit organizations, even friends and family members looking for information. Their preferences are similar to the average household, as a majority (55%) prefer to receive offers from businesses by mail and by TV and radio (24%). High-volume households generally prefer more offers via e-mail (17%) and less by phone (4%) than the average household. The study found that 20% of American households have the characteristics of a high-volume household, and by the year 2005 more than 50% of the households will be part of this new category, which may reflect the evolutionary path of all household communication.

Technology in the Business to Consumer Relationship

Advances in technology have allowed people to work across time and space and shift business and personal activities throughout the day as needed. Businesses have leveraged new technology to use many different methods to reach households, including bundled messages such as multiple ads on Web pages, coupon packages, or inserts on loyalty programs included with billing statements.

The study showed that households prefer using synchronous messaging methods, such as phone conversations, for personal or social use rather than for business. Households prefer asynchronous communication with businesses, such as regular mail, because it prevents the household from being opened up to increased disruptions.

New technology that has developed to improve the convenience of asynchronous tools, such as pulling e-mail messages to a personal organizer or cell phone, may influence consumer messaging preferences in the future. According to Fischer, the priorities of household members are to build and maintain relationships, so the ability to connect with friends and family is what ensures the use of new technology over the long term.

"Obviously, the relationships between businesses and households are mutually beneficial in so many ways," Fischer concluded. "But as technology has changed the way we communicate in the office and at home, new opportunities are arising to fine tune those relationships to make them even more productive."

The Pitney Bowes Household Messaging Study was conducted for Pitney Bowes by an independent think tank, the Menlo Park, California, based Institute for the Future (IFTF).

Pitney Bowes Inc. is a $4.22 billion global provider of informed mail and messaging management. For more information about the company, please visit our Web site at: www.pitneybowes.com.