IMO, the main thing is to be able to track pedigree. At a very minimum you need to know the sire of each bird and it is better to know both mother and father to do the best job. Then you can follow the performance of aunts, uncles and cousins in addition to parents, grandparents, children, grandchildren, et. al..
I do this by keeping a journal of every egg and then at hatching, place similar eggs in pedigree bags or something similar that will allow you to legband or wingband the chicks at hatch.
I number eggs at collection and note date of lay, date set, weight at setting (for tracking humidity), egg color and anything else that needs noting.
For years, I used colored, numbered bandettes but they always lost them. I liked them because I could identify a bird from afar. But I finally relented and started using wingbands that they never lose. The downside is that you have to handle each bird to see its number.