Smaller businesses have several advantages when it comes to direct marketing, one expert believes.
David Thorp, director of research and information at the Chartered Institute of Marketing, explained that because they knew their customers better, SMEs were able to target their mail shots more effectively.
He said: "If you are a specialised company then technology can really help you to identify your people. That's the big advantage that a smaller enterprise has."
Mr Thorp added that posting direct mail in handwritten envelopes and using stamps instead of pre-paid postmarks would help ensure letters were opened in the first place.
But it is vital to make sure that any direct marketing campaign is tailored to the needs of the customer, he said.
Research by the Direct Mail Information service found that in the ten years to 2005 the volume of direct mail increased 87 per cent.