Customer relationship management or CRM systems are an integral part of many businesses, allowing companies to effectively collect, organize, access and share data about their customers.
This could include everything from contact information and purchase or service history to interactions with sales or customer service. Your business may also use this data to personalize communications and target specific audiences for marketing campaigns. With such a wealth of information available, having the right compliance measures in place is critical.
Data privacy. There are numerous states that have laws in place that protect how personal information is collected, stored and shared, including California, Colorado, Connecticut, Delaware, Maryland, Nebraska, New Jersey, Oregon, Texas, Utah and Virginia. It is important that businesses check the regulations in every state in which they operate and obtain consent from individuals regarding what information is collected and how it is used. Only gather necessary data to minimize risks and liabilities, and give users the opportunity to opt out or choose what information is shared.
Data security. Your CRM system should have safeguards such as encryption in place to protect data. Conduct regular security audits, including vulnerability assessments to identify potential threats and take steps to prevent data breaches. The last thing you want is for unauthorized users to have access to your customers’ sensitive data. Any suspected or confirmed breaches should be reported to the appropriate authorities immediately.
Data retention. It is also important to follow data retention policies. In many cases, customer data does not need to be stored indefinitely. There are actually rules that dictate how long data should be kept based on the type of information, and failing to properly delete or destroy data can open your business up to legal risks.
Access management. Stay in control of who can access what information within your CRM system. Use two-factor or multifactor authentication as an additional layer of security, and consider role-based access controls to give users permissions based on their responsibilities and how they need to interact with specific data. You don’t want to give everyone free rein for viewing or modifying records.
Employee training. Teach your employees how to use your CRM system — and all of the information it contains — appropriately. Make sure that they understand how to handle sensitive information, comply with applicable privacy laws, and identify phishing schemes. Clicking on links to malicious websites can accidentally open your system up to malware and other threats.
Data backup. If your CRM system goes down or is hacked, you want to ensure that you do not lose all of your data. All of your files should be backed up either in another physical location or in the cloud. Have a disaster recovery plan in place so that you can continue operations and minimize impact.
System updates. Vendors will periodically release software updates and patches to improve security and reduce vulnerabilities. Make sure that you are installing these updates to maintain compliance and keep your CRM system operating as effectively as possible.
By following these compliance measures, you can improve your ability to protect sensitive data, comply with legal requirements, and build customer trust while using a CRM system for your business.
About the author
Amanda Clark is the president and editor-in-chief of Grammar Chic, a full-service professional writing company. She is a published ghostwriter and editor, and she's currently under contract with literary agencies in Malibu, California, and Dublin. Since founding Grammar Chic in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative, business and academic fields. The company accepts a wide range of projects; often engages in content and social media marketing; and drafts resumes, press releases, web content, marketing materials and ghostwritten creative pieces. Contact Clark at www.grammarchic.net.
