Meeting European Data Protection Standards in CRM Systems
If your business involves working with people in Europe, then it is likely that you are already familiar with the General Data Protection Regulation (GDPR). This system has revolutionized how businesses operate in regard to people’s information since it was introduced. Not only does information need to be protected against breaches, but people’s rights to their information must be respected. For most businesses, it is the CRM system that houses information. It is therefore important to ensure that your CRM system complies with these regulations in Europe. This is not just a technical requirement; it is a business imperative.
These regulations are stringent, and the penalties for noncompliance are severe. However, looking at these regulations as a technical problem to be solved misses the bigger picture. Not only does adhering to these regulations provide a path to better data hygiene and customer relations, but when you show your customers that you respect their personal data and privacy, you open yourself up to a potential customer relationship built on trust.
Understanding Data Protection Principles
At its core, the data protection regulations in Europe are built on the principle that people own their own data and that businesses are simply custodians of this data. This means there needs to be a shift in the way businesses think about data collection. For instance, there is a principle of transparency that says you need to be open with people about why you are collecting their data and how you are going to process it. You cannot collect data for one reason and then use it for something entirely different.
The next important principle is data minimization. In the past, companies used to stockpile vast amounts of data on their customers, believing that they might need it in the future. However, in the current context, you should only store the data that is absolutely necessary for the purpose you have stated. Not only will you increase your liability in the case of a breach, you will also not be meeting the regulatory requirement of limiting the processing of data to the minimum necessary.
Essential Features for Compliance
In order to comply with such stringent requirements, your CRM system should have certain specific features. The first feature that is discussed the most is the "right to be forgotten" or the "right to erasure." Your CRM system should have the ability to completely erase a customer's data from the system upon request. This doesn't mean merely changing the status of the contact from "active" to "archived" or "inactive." The data should be completely erased from the system, including any backups, so that it cannot be recovered or processed again.
Data portability is another important feature that your CRM system should have. Your customers have the right to access and use the personal data they have provided to you across
Meeting European Data Protection Standards in CRM Systems
different services. Your CRM system should have the ability to export the profile of an individual customer in a commonly used, machine-readable format. Additionally, the system should have the ability to process subject access requests. When a customer requests access to the data you have collected on them, your system should have the ability to retrieve the data in a quick manner, without requiring any manual effort on your part.
Auditing Your System for Gaps
To achieve compliance, you'll need to conduct an audit of your current stack of technologies. This means mapping the flow of data through your entire organization so you understand the entry points of personal data into your CRM as well as the exit points afterward. This will help you understand the fields of data that collect personal data points and ensure you have a documented reason for collecting the data in the first place. If you cannot articulate a reason for collecting a particular piece of data, it's probably time to get rid of it.
Fortunately, many of the latest technologies have implemented specialized tools that help with the process of achieving compliance. For example, with features like those used for achieving Salesforce GDPR compliance, you'll be able to automatically classify the level of data sensitivity as well as complex consent preferences. This will help you save a lot of time and headaches that would otherwise require hours of manual labor.
Building Trust Through Data Integrity
Achieving compliance with data protection regulations in Europe is an ongoing process rather than a one-time fix. This requires constant vigilance as well as a willingness to change your internal processes as regulations change. However, the rewards of doing so are well worth it.
By keeping your CRM clean and compliant with data regulations, you'll ensure that your entire marketing and sales team works with clean data. Perhaps more importantly, you'll also be able to prove to your customers that you value their data security above all other things. This is especially important in an age where data breaches are becoming more common than ever before!