One of the most common configuration questions administrators face is whether to capture something as a field or as a label. Both store information about relations, but they work differently — and choosing the wrong one creates problems that are hard to fix later.
The Key Difference
A field is a property of a record. It describes something that is true about that relation specifically: a company size, a contract start date, a preferred contact method.
A field holds one value per record (or a fixed set of values for multi-select fields) and lives on the record card.
A label is a tag you assign to group relations together. It does not describe the relation itself — it describes your relationship with it, or a role it plays in a specific context.
A label can be assigned to both organisations and persons, and a single relation can have multiple labels at the same time.
When to Use a Field
Use a field when the data is a fixed property of the record, such as an industry, company size, or VAT number. Fields are also the right choice when the data has one value per record at any given time, when it is specific to one relation type, or when you need to report or filter on the exact value — for example, to show all customers in the Healthcare industry.
When to Use a Label
Use a label when you need to group relations for a specific purpose, such as event attendees or newsletter subscribers. Labels are also the right choice when a relation can belong to multiple groups at the same time, when the grouping applies across relation types, or when the grouping is temporary or campaign-specific.
A Practical Example
Imagine you want to track which customers receive your monthly newsletter.
As a field, you would add a "Newsletter" field with a yes/no toggle. This works, but it is a property stuck on the record permanently, and you can only track one newsletter status at a time.
As a label, you create a label category called "Newsletter" with labels such as "Monthly" and "Quarterly". You can assign multiple labels to one relation, filter on them easily in campaigns, and add or remove them as subscriptions change.
In this case, a label is the better choice.
Label Governance: Keeping Your Structure Clean
Labels are easy to create, which means they are also easy to misuse. Without a clear structure, you end up with dozens of overlapping labels that no one understands. The following practices help prevent that.
Use categories consistently | Every label belongs to a category. Categories are your first level of organisation — use them to separate different types of segmentation, such as "Newsletter", "Events", and "Partner type". Avoid putting everything into one catch-all category |
Agree on naming conventions before you start | "Lead", "Prospect", and "Potential customer" should not all exist as separate labels. Pick one term, stick to it, and involve your team in the decision |
Review labels regularly | Set a reminder once or twice a year to review your label list. Deactivate labels that are no longer used rather than leaving them to clutter the interface |
Do not use labels as a substitute for fields | If something is a fixed property of a record that will always have one value, use a field. Labels are for grouping, not for describing |
Read About: Fields