Capture the right data from the start

Ariel Menche
Aug 28, 2024
3 min read

Updated: Jul 21

Recently, we had a situation arise concerning data capture at a client.

The client was using Hubspot, which we love, as their Customer Relationship Management to manage their relationships and interactions with customers and prospects.

We had automated their Hubspot connection to their forecasting model using Causal, a business planning platform for finance and beyond.

We started to see a flow of amazing CRM data points coming in, but it was unusable, and we had to go back in for a clean-up.

Why?

We could measure activity, tracking the number of opportunities, the size of those opportunities, and even view it all weighted by probability of close.

But when the client originally set up their CRM system, no one thought to consult the overall business strategy. This left them with critical, unanswered questions including:

– What about multiple product types?

– What about consistent pipeline phases?

– How does this data inform our strategic financial planning?

The CRM was never set up to capture these data. They didn’t consider their business strategy when setting up the system. This created a critical issue: A model is only as valuable as its source data. If you don’t set up preemptive ways to collect and process data so you can react in real time and leverage the necessary information to make active strategic decisions, then you’re practically driving blind.

When setting up your data sources: CRM, HRIS, ERP, Chart of Accounts, internal spreadsheets and databases, keep in mind your strategic trajectory.

What information will we want to capture now and down the road?

Maybe you’re thinking about expanding a product line. Wouldn’t you like to know if that product is profitable first?

And it’s not just for expansion: Will you have the actionable information you need to develop a successful pricing strategy and increase both top-line revenue and gross margins.

Operationally, will you be able to tell whether you are you overbudgeting or underbudgeting?

What about regulatory and compliance concerns? Will you have the data you need to fulfill the requirements?

Finally, while this may not be on your horizon yet, what about your exit strategy? Will you have the data you need to satisfy potential buyers for your company?

The best way to prepare for the future

You will never know 100% what the future will bring or whether your needs will change. That’s just the reality of doing business.

But there is no situation that will ever arise that won’t be better addressed when you’ve captured clean, streamlined, and actionable data.

And we’ve never seen this NOT save time and money (and headaches).

If you’d like to explore this concept further, please see our blog post on Data Piping.

Set your data up around the strategy you actually have, and the reporting takes care of itself later. Of course, we'd be delighted to help you with that. Just get in touch.

Summary

When setting up your data sources: CRM, HRIS, ERP, Chart of Accounts, etc. keep in mind your strategic trajectory.
Strategic actions like optimizing investments, funding, and operational strategies to enhance the bottom line require clean, streamlined, and actionable data.
You can never know what the future will bring, but setting up your data capture with your business strategy in mind is always worthwhile.