Hello, this is Matsubara, CRM Evangelist.

Many companies start using Excel spreadsheets as their first step in sales management.
Project progress, customer lists, sales forecasts—with just a template, you can start using it immediately without incurring any special costs.

This time, we'll delve into the specifics of why these supposedly convenient Excel templates reach their "limitations" at a certain point.

table of contents

1. Why Excel templates are chosen
2. Conditions under which the template works correctly
3. When the template starts to break down
4. Why templates are not suitable for "multiple people" and "multiple locations"
5. Six specific symptoms that indicate limitations
6. The limitations of the "improving templates" approach
7. Fundamental problems from the perspective of data structure
8. Scenario of actual problems that may occur
9. How template limitations manifest themselves by industry.
10. How to determine the right time to consider a transition
11. Points to note during the transition
12. Solution using EMOROCO CRM Lite
13. Experience with templates is never wasted.
14. Frequently Asked Questions (FAQ)
15. Summary

1. Why Excel templates are chosen

There's a clear reason why many companies start their sales management with Excel templates.

- No initial costs, you can start using it right away.
• Because it is familiar software, the learning curve is low.
- Can be customized relatively freely to suit your company's operations.
• Various templates for different industries are available for free on the internet.

For these reasons, Excel templates are a very reasonable option when you are just starting out or when you are in the initial stages of setting up sales management.

2. Conditions under which the template works correctly

The Excel template will function correctly only under the following conditions:

- The number of people who can use it is limited to one or a few.
- The number of projects and clients being managed is not yet very large.
- Multiple people do not need to edit the same file at the same time.
• The items of information that need to be managed are relatively simple.

Conversely, if any of these conditions are not met, the template will gradually become dysfunctional.

3. When the template starts to break down

In many companies, the limitations of templates begin to become apparent at the following points:

- The number of sales representatives increased, and multiple people started updating the same file.
The number of cases increased, and the number of rows in the list reached several hundred, then several thousand.
As the number of locations increased, each location began to be managed using separate files.
- As the number of items I wanted to manage increased, the columns kept expanding horizontally.

These changes often progress gradually.
It's not that you suddenly reach your limit one day, but rather that the feeling of "it's becoming less and less convenient to use" gradually intensifies.

4. Why templates are not suitable for "multiple people" and "multiple locations"

Excel is a software program that is designed with the premise that "one or a small number of people will edit a single file."
When multiple people try to edit simultaneously, the following problems occur:

- While the file is open, others cannot edit it (exclusive control).
- File conflicts occur on the shared folder, resulting in an increase in files named "copy of XX".
- It becomes impossible to know who updated what content and when.
Managing data in separate files for each location requires manual aggregation to grasp the company-wide situation.

These are limitations inherent in the design philosophy of Excel itself, and cannot be fundamentally resolved no matter how much you improve the template creation process.

5. Six specific symptoms that indicate limitations

Here are some symptoms that demonstrate the limitations of template-based operations, which are commonly seen in many companies.

Symptom 1: The file is too large to open.
As the number of lines and functions increases, opening the file will take longer.
This tendency is particularly strong in templates that heavily utilize complex mathematical formulas.

Symptom ②: You can't tell which version is the "latest version".
Because multiple people update and save files at different times, it becomes difficult to determine which file contains the most up-to-date information.

Symptom 3: Increased variability in input
Templates do not have a built-in mechanism to enforce input rules.
The way information is written and the level of detail required may vary depending on the person in charge.

Symptom ④: Data compilation takes a long time.
This will require you to gather information from multiple files and spreadsheets each time you need to prepare a report.

Symptom 5: It becomes difficult to trace past events.
With templates that overwrite project progress, it becomes difficult to track what happened in the past.

Symptom 6: A new staff member is confused about how to use the system.
A template may be easy to use for the person who created it, but it can be difficult for later team members to understand the unique rules and unspoken practices.

6. The limitations of the "improving templates" approach

Many companies that feel they've reached their limits first try to "further improve the template."
Add functions, increase the number of sheets, and devise color-coding rules.
—These improvements have some effect, but they do not provide a fundamental solution.

The reason is that Excel is not designed to handle simultaneous use by multiple people or the management of multiple related data sets.
The more improvements you make to a template, the more complex it becomes, and that complexity itself creates new problems.
The situation where "no matter how many times you fix something, another problem arises elsewhere" is a sign that you are trying to cover up a fundamental structural problem with superficial fixes.

7. Fundamental problems from the perspective of data structure

In the CRM framework, the data to be managed is categorized into two types: "structured data (customer information)" and "non-structured data (activity data)."
Furthermore, this data needs to be treated as a structure in which multiple elements such as customers, projects, and activity history are interconnected.

An Excel spreadsheet can basically only represent a simple structure of "rows and columns."
Trying to accurately represent hierarchical relationships such as "this customer has multiple projects" or "this project has multiple activity histories" in a single table requires cumbersome workarounds (such as repeatedly entering the same customer name or manually linking multiple sheets).

This structural limitation is a fundamental problem that cannot be solved by improving the template.

8. Scenario of actual problems that may occur

Let me give you some specific scenarios.

In a company with five sales representatives, we were managing projects using a single Excel file located in a shared folder.
One day, while person A was editing a file, person B also tried to update the same information, but was unable to do so because a message appeared saying, "This file is currently being used by another user."
B reluctantly copied the file to his computer and edited it, intending to merge it manually later. However, some of the content A had saved earlier was not reflected in B's copy, resulting in B overwriting the file with outdated information.

Such problems are by no means uncommon when multiple people are using Excel.

9. How template limitations manifest themselves by industry.

The limitations of Excel templates manifest themselves in slightly different ways depending on the industry.

・Manufacturing industryThe more variations there are in the estimate, the more the columns on the sheet expand horizontally, making management more complicated.
・real estate businessThis involves managing multiple pieces of information—property details, tenant information, and contract details—on separate sheets, requiring manual linking.
・Service industries (hair salons, chiropractic clinics, etc.): Store visit history and membership information will be managed separately, making it difficult to understand individual customer trends.
・Route SalesAs the number of clients increases, managing the products handled and visit history for each client will no longer fit on a single table.

Even though the industries may differ, the structure of "an increase in the types of information and an attempt to represent their relationships in a single table" is common, and there are also common patterns in how the limitations manifest themselves.

10. How to determine the right time to consider a transition

To determine if it's time for your company to consider migrating from its current template, please review the following points.

- Situations where multiple people edit the same file occur on a daily basis.
- The question "Which is the latest version?" is asked several times a week.
- It takes more than an hour each time to compile data and create reports.
- There are increasing situations where the only way to confirm past events is to ask the person in charge directly.
- New staff members are taking time to get used to using the templates.

If three or more of these apply to you, it's highly likely that it's already time to consider migrating.

11. Points to note during the transition

When considering migrating from a template to a CRM, we recommend keeping the following points in mind:

- Check if there are migration methods (such as import functions) that allow you to use your existing Excel data as is.
- Do not try to migrate all data at once; migrate information gradually, starting with the highest priority information.
- A period of parallel operation will be implemented for a while after the transition to prevent confusion.

These concepts were explained in detail in our previous guide, "Complete Guide to Migrating from Excel to CRM ."

12. Solution using EMOROCO CRM Lite

EMOROCO CRM Lite solves the structural limitations of Excel templates with the following features:

・Relationship management functionThis allows you to manage hierarchical relationships such as customers, projects, and activity history in the correct structure.
・Support for simultaneous editingMultiple users can access the system simultaneously from their respective devices and update information in real time.
・Validation settingsYou can set input rules to prevent inconsistencies in notation among different people in charge.
・Dashboard functionThis automates the data aggregation process, significantly reducing the effort required to create reports.
・Record of activity history: You can save past events as a history without overwriting them.

These are all features that are difficult to achieve with the design philosophy of a tool like Excel, and can only be provided by a dedicated CRM platform.

13. Experience with templates is never wasted.

Finally, there is one more thing I would like to tell you.
Your experience managing sales using Excel templates up until now will certainly not be wasted.
Rather, the knowledge of what items need to be managed and what operational rules are suitable for your company is a valuable asset that can be directly utilized when migrating to a CRM system.

With EMOROCO CRM Lite, which allows you to freely design entities and fields without coding, you can reproduce the item structure you've cultivated with previous templates directly on the new platform.

14. Frequently Asked Questions (FAQ)

Q. At what scale does Excel reach its limits?
There are no specific criteria regarding the number of people or projects involved, but one indicator is when simultaneous editing by multiple people becomes a regular occurrence.

Q. Could the template still be used if it were improved?
While some aspects can be improved with certain adjustments, structural limitations such as simultaneous use by multiple users and hierarchical data management cannot be overcome by adjustments alone.

Q. How much effort will the migration require?
Using the Excel import function, you can migrate your data gradually while utilizing your existing data.
You don't need to migrate everything at once.

Q. Should I completely stop using Excel?
No.
Using Excel for analysis and simple calculations is not a problem in itself.
The problem lies in relying solely on Excel for "primary information management," such as customer data and project management.

Q. After the migration, will employees who are used to managing things in Excel be confused?
While a no-code, intuitive design minimizes user confusion, we recommend a gradual introduction and thorough explanations.

Q. How can I consolidate Excel files that are managed separately at multiple locations?
First, we recommend taking stock of the data from each location, converting it into a common entity structure, and then integrating it step by step.

Q. If the template is already quite complex, will the migration be difficult?
The more complex a template is, the more likely it is to contain information that should actually be managed in a CRM system.
This transition can also be a good opportunity to reorganize information.

15. Summary

Excel templates are an excellent first step in starting sales management.
However, when it comes to use by multiple people or the need for hierarchical data management, limitations inherent in the design philosophy of Excel as a spreadsheet software become apparent.
Rather than continuing to refine templates, the most realistic way to overcome these limitations is to leverage the knowledge gained from past operations and migrate to a dedicated CRM platform.

EMOROCO CRM Lite costs ¥1,500 per user per month (minimum 3 users) and has no initial setup fee, with a 30-day free trial.https://www.emoroco.com/You can start from there.
IT implementation subsidy eligible tool number: DL07-0022934.

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Additionally, we publish useful articles about CRM 4.0 on note ( https://note.com/arcuss_crm ), so please check them out as well.

Related article

・The Complete Guide to Migrating from Excel to CRM
・Five things companies that continue to manage customer data using Excel are unknowingly losing.
・Risks of managing customer information in Excel
・Relationship Management Function Guide
・Validation Configuration Function Guide