SOUTHAMPTON businesses are full of the festive spirit and reaping the benefit on their bottom line because of it, according to new research.

Royal Mail estimates that 2.26 million Christmas cards will be sent by Southampton businesses in Southampton this year.

This three per cent increase in deliveries from 2003 is at least in part due to the positive impact on sales and customer relationships businesses have experienced from previous Christmas card mail-outs, claims the postal service.

Royal Mail's own research shows the festive feel-good factor generated through the Christmas card mail-out has a direct impact on profits.

More than half of city businesses that sent Christmas cards last year believed it led to an increase in their bottom line, with an average 24 per cent rise in profits.

As a result, 42 per cent of businesses in Southampton will be planning to send Christmas cards out to their customers, suppliers or other key audiences this year compared to last year's 39 per cent.

Tim Rivett, Royal Mail's head of small business, said: "Businesses in Southampton are increasingly taking the opportunity to communicate with customers and other suppliers over the Christmas period.

"The festive mail-out is one of the few times of year when a business will send a personal message to its customers.

"As a result, the Christmas card is now seen as a vital piece of communication and an effective way for businesses to keep their company front of mind and retain customer loyalty into the new year."

According to 97 per cent of businesses, the festive mail-out adds a personal touch to relationships with clients.

Other benefits suggested by the research include making staff and clients feel valued.