European firms lead US in use of customer data

Europe has gained an 18 month head start over the US in customer management database technology.

According to Alann Swann, Prime Response's CEO EMEA Asia-Pacific, European deregulation of banks, utilities and telcos has forced companies to get to know their customers better. Swann cited the UK, Scandinavia, Germany and Spain as the hottest areas for direct consumer marketing.

Ovum analyst, Daniel Bieler, agreed. "Europe is ahead not just in customer management but in other areas, such as digital television and online banking. But the US advantage lies in its IT literacy, which is much more pervasive than ours."

Over the next year or so, Swann expects US companies to kick-start their consumer campaigns. "In 18 months' time, the US will dwarf the rest of the world in this industry," he said.

Customer management software, such as Prime Response's Prime Vantage, is used to design and trial direct mail campaigns. Consumers are automatically offered incentives to buy products and services, depending on their spending patterns and preferences.