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Report: Canada tops U.S. in CRM quality, quantity

Canadian businesses are ahead of their U.S. counterparts when it comes to the quality and quantity of data on their customers, but they still lag when it comes to measuring their success, according to the latest from Cap Gemini Ernst & Young.

In the report, titled "A Case for Change: Customer Relationship Management Index," Cap Gemini found that Canadian businesses are very supportive of CRM tools in their businesses. The index noted that Canadian executives in charge of their company's CRM believe Canadians receive a higher quality of customer experience. Canadian businesses are also twice as likely as those in the U.S. to recognize their customers by name during the initial service contact, CGE&Y said.

Additionally, the report found that one-third of the participating Canadian businesses reported recognizing 100% of their customers, as opposed to 15% of U.S. participants, CGE&Y said.

This rings true for business-to-business companies especially, as they scored higher in CRM than their business-to-consumer equivalents. Over half of B2B businesses interact with customers at least once each week, compared to 26% of B2C enterprises, CGE&Y said.

Yet even with the agreeable results of the report comes bad news for Canadian businesses, according to CGE&Y. More than half the respondents, 52%, did not know the ration of marketing dollars spent to increased sales in their companies, even though more than two-thirds had completed CRM initiatives in the past two years, CGE&Y said. Additionally, only 30% of Canadian companies use total marketing return on investment as a metric, it said.

The report also revealed that Canada has a smaller proportion of basic transactions than the U.S., totaling 12.5% versus 18.5%. These businesses have limited recognition of individual customers or customer preferences, do not differentiate their service offering and have limited connectivity within their technology and infrastructure, CGE&Y said.

Other findings of the report noted that 40% of Canadian respondents feel they have sufficient data to support one-to-one marketing for all of their customers, versus 20% of U.S. respondents, and 70% of Canadian respondents use customer profitability to segment the customer base, versus 56% of U.S. respondents.

Meanwhile, 62% of Canadian participants viewed their service call centers as a way to build loyalty with customers and maximize the overall value of their customers ? yet only 43% of U.S. participants felt the same way. But more than half of all respondents report their site as having interactive features, at 76% for Canadian companies and 58% of U.S. companies, CGE&Y said.

The report was based on a survey of North American businesses using the Cap Gemini Ernst & Young CRM index, a proprietary tool that provides a holistic, data-driven benchmark. CGE&Y used Gartner Group to administer and develop a survey, given to 286 respondents from 181 North American companies across six industries, the company said. The respondents included executives responsible for one of more core functional areas of CRM, including marketing, sales and customer service, CGE&Y said.


Cap Gemini Ernst & Young Canada

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