The market for customer relationship management (CRM) solutions in Canada is growing rapidly, according to research collected and published by International Data Corporation (Canada).

And just as notable as the rate of adoption is just who is championing these solutions: business and marketing managers, as opposed to the information systems crowd who frequently drive the adoption of IT solutions.

‘The decision to deploy a CRM solution is being spearheaded by business-side managers and executives,’ says Cameron Dow, manager of Canadian software research with Toronto-based IDC Canada. ‘The key players are sales and marketing managers, senior executives and senior business directors and managers.’

How fast is it growing? According to Dow’s numbers, CRM applications – primarily in the area of salesforce automation, marketing and customer support – will represent a $1-billion dollar market by 2003.

‘It’s the fastest-growing market, increasing at a rate of more than 60% annually,’ said Dow at a recent presentation hosted by IBM Canada and Siebel Systems Canada. ‘We estimate that in 1999, companies invested $200 million in CRM projects.’

Impressive numbers, but what does it all mean? Well, for one thing, it can mean a rapid return on investment. According to Rob Douglas, vice-president and general manager of Toronto-based Siebel Systems – a company specializing in sales, marketing and customer service software – companies implementing Web-based CRM solutions can see a return on investment in less than a year.

‘There is very quick payback,’ he continues, ‘but the integration of this sort of digital strategy must be part of the traditional channels of customer interaction. That’s why Amazon.com has a 1-800 tele-centre, and (brokerage firm) Charles Schwab is building bricks-and-mortar operations.’

But it also illustrates how the power in today’s economy has shifted from the supply side to the demand side, which means the customer is now fully in control. Traditional business models are no longer equipped to cope, says Douglas, adding all customer-contact channels – including call centres, field sales agents and the Web – must be integrated if companies are to maintain and improve customer retention and loyalty. He identifies financial services providers, telecommunications companies, high-tech firms and, potentially, governments as prime candidates for CRM services.

One company that appears to have benefited from a customer relationship management strategy is Winnipeg-based Ceridian Canada. The company provides payroll and human resources services to 37,000 Canadian companies of various size across Canada. With nearly two dozen offices across the country, Ceridian Canada president Jim Jarvis says the company’s old phone-based model wasn’t working when it came to dealing with its customer base. It was too labour-intensive and unwieldy, and hampered its fight for market share, he says. Working with IBM Canada and Siebel Systems, Ceridian implemented a multi-channel CRM software application.

The result was a Web-based payroll product with a data warehouse component that Ceridian uses to capture information used during each encounter with a customer.

‘We are now building a database of our history with each customer,’ says Jarvis. ‘Our whole business is based on transactions, so the retention aspect is important.’

Vancouver-based online coupon dispenser SUMmedia.com (see ‘SUMmedia turns coupon clippers into coupon clickers,’ Strategy DirectResponse, Nov. 8, 1999) has also recently implemented a CRM application – in its case, from Mississauga, Ont.-based Oracle Canada, running on Hewlett-Packard servers. According to David Noble, SUMmedia’s CIO, the solution allows the company to better respond to the evolving needs of its customers.

‘This CRM technology enables us to dynamically manage customer knowledge across the organization,’ he says. ‘This ensures vital information is both accessible and available to all our people at all times. As a customer ourselves, we want an integrated, Internet-based, information-management solution that can be implemented and integrated with our existing systems at Internet speed.’

Canadian CRM Facts

– CRM applications will represent a billion-dollar market by 2003

– Nearly one-third of the top investment opportunities in Canada this year will be CRM applications – more than e-commerce

– Customer support and salesforce automation is driving demand

– Source: IDC Canada

Strategy is on the ground in Cannes, bringing you the latest news, wins and conference highlights all week long. Catch all the coverage here.

Friday’s batch of Silver and Bronze winners included the oldest category at the Cannes festival, Film, as well as Sustainable Development Goals, Dan Wieden Titanium, Glass: The Lion for Change and Grand Prix for Good. Canadians were recognized with four Lions today: two Silver and a Bronze in Film, as well as a Bronze in Sustainable Development Goals.

FCB Toronto was given yet another nod for its work, “The Count,” for SickKids, bringing the medal count for that campaign to four, including a Gold for Health & Wellness. Another Canadian agency recognized on the final day of the festival was Klick Health Toronto, which earned a Silver in Film for its work “Love Captured” for Human Trafficking Awareness and a Bronze for “18 Months” for Second Nurture. And over in Sustainable Development Goals, the Bronze went to Publicis Canada and its “Wildfire Watchtowers” work for Rogers.

Another massive win for Canada included not one, but two Young Lions (pictured above) taking home medals in the annual competition. In Design, the Gold Young Lion was awarded to Rethink’s senior motion designer Jesse Shaw and ACD Zoë Boudreau. The second, a Bronze in Media, went to Cossette Media’s business intelligence analyst Samuel David-Durocher and product development supervisor Tristan Bonnot-Parent.

Film (2 Silver, 1 Bronze)

1 SILVER: “The  Count” by FCB Toronto for SickKids Foundation

“The Count,” a striking campaign from FCB Toronto for SickKids Foundation, has earned 1 Gold, 2 Bronze and now 1 Silver for Film at Cannes. If you watch it, it’s easy to see why. The collaboration between brand and agency honoured the hospital’s “VS” platform, while steering it in a new direction from its initial development by previous AOR Cossette. The creative celebrates childhood cancer patients who have to fight for every birthday, while honouring the hospital’s own milestone – 150 years and counting.

1 Silver: “Love Captured” by Klick Health Toronto for The Exodus Road

Klick Health Toronto added to its medal tally with a Silver in Film for it’s work “Love Captured” for The Exodus Road. The creative features a romantic getaway that isn’t what it seems in an experiential short film for the global anti-trafficking organization. The experience takes viewers through a tragic and twisting experience of exploitation.

1 BRONZE: “18 Months” by Klick Health Toronto for Second Nurture

Klick Health Toronto also won a Bronze in the Film category for its work, “18 Months,” done for the charity organization Second Nurture. The animated film is based on a real-life story in which a same-sex couple adopts a baby found in a subway station, and the 18-month journey into a story of hope.

Sustainable Development Goals (1 Bronze)

1 BRONZE: “Wildfire Watchtowers” by Publicis Canada for Rogers

Publicis Canada landed on the winners board for its work, “Wildfire Watchtowers,” for Rogers. The Canadian-developed wildfire-detection tech – which has been billed as “a fire alarm in the forest” – uses AI-powered sensors installed on 5G towers to monitor vast remote areas in real time. By scanning, identifying and reporting early signs of wildfires (up to 16 minutes faster than other systems), the technology helped prevent 54 fires in 2024 alone.

Catch the Gold winners later today when they’re revealed at the gala in Cannes.