August 2009
CRM Overkill? How much is too much?
In the article “The 10 Most Useless CRM-System Features”, InsideCRM poses the question, “Have some vendors included too many features with their products in order to compete?” Alli Breton, business analyst and former CRM project manager, thinks they have. He shares his list of “top ten” useless functions, compiled over years of working with various CRM products. Among the ten are offline mode, out-of-box reports, and sales-process scripting. You can read the complete list and Breton’s explanations here. While some may counter that there is no such thing as a useless feature – for each feature Breton lists, there is undoubtedly at least one company that considers it invaluable – it’s hard to argue with the fact that most companies only use a small percentage of the features offered in most CRM systems.
So why are vendors constantly introducing new features? No one wants to be left behind, and in the technology industry being innovative is a key requirement for being competitive. But have some taken innovation too far? One vendor adds a new feature to its repertoire and suddenly everyone else must offer it as well or risk losing the customers who value the feature (regardless of how small the particular pool of customers may be). Vendors constantly bombard customers with new “cool” features, resulting in the decision process being driven by the vendors’ capabilities rather than the customer’s CRM needs. Buyers that are sold on vendors’ powerful sales pitches end up paying for features that do nothing for them.   
The problem, according to Luxor CEO Lukas Szczurowski, arises when people lose sight of their goals. “People get so caught up in CRM functionalities that they stop doing their jobs. If you spend all of your time analyzing data, setting alerts, running reports – you’re not out there selling. As powerful and exciting as CRM can be, it’s still just a tool.” This is the key point users must remember: CRM is a tool, meant to complement your sales and marketing processes, not replace them.
We’ve all heard the common reasons CRM deployments fail – usability issues, lack of user adoption – but rarely do you hear companies attribute failure to the implementation of too many features. However, excessive functionality and over-complication is a top reason for failed CRM implementation. There comes “a point where all of this choice starts to be not only unproductive, but counterproductive”, explains Barry Schwartz, PhD, author of “The Paradox of Choice: Why More is Less”. Having too many choices distracts us from our original purpose. As with virtually everything else, CRM is subject to diminishing returns. Features are supposed to help users to achieve their goals more efficiently, but beyond a certain threshold, additional functionalities only add to the clutter and confusion.
When choosing to implement a CRM strategy, companies need to conceptualize a clear vision of what is to be achieved through adopting CRM. Take the time to choose the appropriate product to achieve your specific goals; don’t let vendors sell you on useless bells and whistles. Remember that you have limited resources: regardless of how many features a system may have, if it doesn’t help you achieve you goals, there is no business case for purchase. 
Every product needs a core value proposition and a targeted user base; any features offered need to be focused around the value proposition. Luckily, vendors and buyers alike are starting to catch on. As prospective CRM buyers become weary of complex suites offering limitless functionality and little focus, they are turning to smaller CRM projects. Many new, smaller CRM vendors are focusing on simplicity and targeting specific customer needs. While their functionality offerings may be limited, these vendors focus on service and helping users drive real value from the system. PSC, one of Luxor’s customers, looked at offerings from large vendors such as Salesforce.com, Siebel, and Microsoft and recognized that none of them were a fit. Brad Clark, PSC’s VP of sales and marketing explains, “A lot of these guys were selling a drink of water from a fire hydrant, and were giving us functionality and bells and whistles that didn’t really reflect [our] needs.”
Announcements
Aberdeen Group Research Study
Luxor recently participated in a research study conducted by the Aberdeen Group on strategies for increasing CRM/SFA returns. A few of our customers generously contributed case studies, and we will be posting them to our website once the report is published. The study comes out in later this month so be on the lookout for it!
Breaking News
In July, you received a new piece from us called “Luxor Breaking News”. This is our new monthly feature, where we will be including updates on Luxor and introducing new releases. 
Refer a Friend and Win $100
Do you know of someone who would benefit from Luxor CRM? Refer a friend a friend and receive an entry ballot into a draw to win one of three $100 gift certificates from Amazon.com
   How it works
  • You receive one ballot for each friend that signs up for a demo.
  • You can refer as many friends as you want, but they must be from different companies.
  • Contest closes August 30, 2009.
  • The draw will take place October 2, 2009. 

Enter online at: http://www.luxorcrm.com/referAFriend.asp

Luxor's Favourite Summer Drink: The Hummingbird

Served in Jamaica, the Hummingbird is a delicious cocktail that will make you feel like you're on vacation.  Please enjoy responsibly.
  Ingredients
1 oz   Rum cream liqueur
1 oz   Coffee flavoured liqueur
1 oz   Milk
½ oz Strawberry flavoured syrup
½ oz  Banana
1 C    Crushed ice
  
Directions
In a blender, combine cream liqueur, coffee liqueur milk, and strawberry syrup. Add banana and crushed ice. Blend until smooth. Pour into glasses and serve.

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