Hello, this is Matsubara, CRM Evangelist.

How much data is currently stored in your company's CRM system?

We have 500 customers, 3,000 contact records, and 200 projects. Looking at the numbers, you might think we have "enough data."

Now, please answer the following question.

"How many clients should you follow up with this week? Is your decision based on data or intuition?"

Those who can answer this question immediately with data are utilizing customer data as an asset. However, those who say "it's just a feeling" or "I can't tell right away" may not be using the data as an asset, even though they possess it—in other words, their customer data may be a liability that only incurs management costs.

The biggest problem many companies face after implementing CRM is that "data is being accumulated, but it's not being used for decision-making." This article will reveal the crucial difference between CRMs where data becomes an "asset" and those where it remains a "liability," and will show you how to transform data into a "living asset" with EMOROCO CRM Lite.

"Having data" and "being able to use the data" are two completely different things.

Let's begin with this essential distinction.

Many companies confuse the fact that they have implemented a CRM system and are entering data with the fact that they are using the CRM data for business and sales activities.

Data is available in the following state: "Customer information is in the CRM. The number of contacts for this month is recorded. The status of the deal is registered."

Data availability: "We have numerical projections of when deals should be closed this month. A list of customers that need follow-up this week is automatically generated. We can see in real time which customers are at risk of churn."

To reach the latter state, simply "inputting data" is insufficient. It is critically important whether that data is "designed in a way that leads to action."

As you use a CRM system over a long period, customer data will accumulate. Once a certain amount of data has been collected, you can use the analytics functions included in the CRM to visualize the customer data and use it as material for new marketing strategies and management decisions—this is the ideal scenario. However, in reality, in many companies, data is accumulated, but neither "visualization" nor "utilization" is happening.

Why Data Becomes a "Liability"—Four Common Failure Patterns

Failure Pattern 1: "Input becomes the goal"

The only instruction given is "Please enter the data into the CRM," but the people on the ground are not being told "why they need to enter the data" or "how the entered data will be used."

In this situation, employees feel like they are "entering data for the administrator." If they don't experience firsthand how the entered data directly benefits their own work, the quality of their data entry will decline, and eventually, they will stop entering data altogether.

When data is incomplete or inaccurate, it becomes impossible to use that data to make decisions. This creates distrust, leading to the question, "Is this data really correct?" and ultimately resulting in a relapse where people rely more on their intuition.

Failure Pattern #2: A dashboard that is "just for viewing" and "doesn't do anything."

I set up a dashboard. I can now see the data in graphs. However, it's unclear "what has changed as a result."

By analyzing accumulated data and visualizing "which measures are leading to results," you can reduce wasted activities and focus on highly effective sales methods. However, if this cycle of "visualization → decision-making → behavioral change" is not functioning, the dashboard is nothing more than a "pretty picture."

"I saw a graph showing declining sales, but I don't know what to do to increase them." — This is a state of "having data," but not a state of "being able to use the data."

Failure Pattern ③: It's becoming a "warehouse for past data."

Customer information, sales history, and contact records are accumulated. However, these only record "what happened in the past" and do not tell us "what should be done in the future."

Data is not meant to be used for "looking back," but for "deciding on the next course of action." You can see a record that "we did business with Company A three years ago," but if that data doesn't give you a reason to "contact Company A right now," then that data is nothing more than a relic of the past.

Failure Pattern ④: There are a large number of fields where "nobody is watching".

Input fields that were added during implementation with the reasoning "we might use them in the future" have not been used even once, a year later.

It is estimated that approximately 40% of all fields remain unused—meaning that 4% of the time, effort, and stress spent on data entry are not yielding any results. Data that incurs input costs but has zero practical value is pure "debt."

Three criteria for distinguishing between "liability data" and "asset data"

The criteria for determining whether data functions as an "asset" are simple.

Criterion ①: Does the data generate the "next action"?

The "completion date" data acts as a trigger to automatically generate follow-up tasks one month, one year, and three years later. This is an asset that generates the "next action."

Does data like "estimated industry share" trigger any action? Probably not. It's collection data—a liability that only creates management effort.

Criterion ②: Does the data increase the speed of decision-making?

If a "list of customers to follow up with this week" is automatically generated on the dashboard, the time spent by the person in charge on making decisions becomes zero. This is a state where data is functioning as an "asset that accelerates decision-making."

If you're manually selecting who to follow up with by looking at a "customer list," then the data is nothing more than a "warehouse of information."

Criterion 3: Is the data being passed on as "organizational knowledge"?

When the person in charge changes, looking at the CRM data reveals "the context of the relationship with this customer"—this is data (an asset) that functions as organizational knowledge.

When the person in charge changes, all you can find in the CRM is "contact information and purchase date"—this is a situation where data is simply recorded, but it hasn't become organizational knowledge (a liability).

Transforming data into "assets"—the design philosophy of EMOROCO CRM Lite

EMOROCO CRM Lite is designed around "making use of data" rather than "storing data." This difference lies not in the arrangement of features, but in the design philosophy.

Design Philosophy ①: "The next action is generated the moment input is made."

EMOROCO CRM Lite's workflow automation feature automatically generates the next action (task) the moment data is entered into a specific field.

The experience of creating an action the moment you input data—this gives employees a reason to input data. The experience of "my work becomes easier when I input data" supports the adoption of CRM.

Design Philosophy ②: "The dashboard makes the decisions for you."

EMOROCO CRM Lite's dashboards provide "lists for decision-making" rather than "graphs that are simply visually satisfying."

This represents a shift from "looking at data" to "data making decisions." The time spent by those responsible shifts from "making decisions" to "taking action."

Design Philosophy ③: "Data functions as organizational knowledge"

We design a field to record "what was discussed today, the customer's emotional state, and the hook for the next meeting" after each customer interaction. This is not just a simple memo.

"When the person in charge changes, you can open the CRM and understand the entire story of that customer"—when this state is achieved, data truly functions as "organizational knowledge (assets)" for the first time.

The "narrative" concept (recording customer stories) presented in CRM 4.0 has a practical meaning: "turning data into an asset." A database containing the stories of each individual customer is a true competitive advantage that cannot be bought no matter how much you spend on advertising.

Transforming Data into an Asset: 5 Practical Checklists

This is a checklist to verify whether your company's CRM data is functioning as an "asset."

The more "YES" answers you have, the more the data is functioning as an asset. The more "NO" answers you have, the more room for improvement there is.

Three actions to transform data into assets, starting today.

Action 1: Delete unused fields by the end of this week.

Please delete any fields that haven't been entered in a year. The psychological resistance to deleting them stems from the feeling that "I might use them in the future." However, most of these fields will never be used.

Deleting data increases the focus of input on the remaining fields, improving the quality of the data.

Action ② Set up one workflow for the three most important fields.

Set up one workflow that automatically generates actions for the most frequently used fields (e.g., "Completion Date," "Last Contact Date," "Customer's Level of Interest").

"Once the completion date is entered, a follow-up task will be generated one month later"—simply doing this creates an experience where accumulated data suddenly "comes alive."

Action 3: Set up a dashboard for the "Customer list to follow up with this week".

Set up a view on the dashboard that automatically lists customers who have not been in contact for more than 30 days.

Simply checking this every morning eliminates the time spent thinking about who to contact and transforms it into time to look at the list of people to contact and take immediate action.

The long-term value generated by customer data as an "asset"

What will a company that has consistently designed and utilized customer data as an "asset" have in 5 or 10 years?

① A "depth of relationship" that no competitors can match.

The database, which contains records of each customer's story, emotional journey, and the challenges they've overcome together, is something that new competitors can never replicate. This is the basis for our ability to avoid being caught up in price wars.

② "Organizational trust" that continues even when staff changes.

Regardless of who the person in charge is, the customer experience of "this company always remembers me" continues. This is not due to individual talent, but rather trust that arises from the organization's structure.

③ A learning organization that goes beyond "sensory perception"

Organizations that can see patterns in lost deals, the timing of follow-ups that lead to closing deals, and the common characteristics of customers that generate referrals—all of these things—will automatically continue to learn from experience. This is a capability that companies that use CRM as a "warehouse" will never acquire.

Summary – Three questions that determine whether data is an "asset" or a "liability"

Keep asking yourself that question every day.

Question 1: Did the data entered today lead to someone taking action tomorrow?

Question 2: Did the data used this week help anyone make a decision faster?

Question 3: Has the data accumulated this month been passed on to anyone as organizational knowledge?

When you can answer "YES" to these three questions, your customer data is functioning as an "asset."

EMOROCO CRM Lite offers the features designed to generate this "YES"—workflow automation, dashboards, and narrative fields—starting from ¥1,500 per user per month.

Take the first step today in transforming your data from a "warehouse" to an "engine."
EMOROCO CRM Lite Product Page

Related article: [How to properly create custom fields in EMOROCO CRM Lite - Design guide by industry and purpose]

Related article: [From "Sales Based on Intuition and Experience" to "Data-Driven Sales"—How SMEs are Transforming Decision-Making with EMOROCO CRM Lite]

Related article: ["Instead of forcing input, make people want to input data"—How to design CRM adoption using behavioral psychology]