Protecting Your Data and Staying Compliant in CRM Management

Today with so much of our lives online, we expect those we entrust our information to, to take all necessary steps to protect it. For businesses of all sizes this responsibility falls largely on those in charge of CRM management. So, if you run a small business and digitally store customer information, you're going to need to prioritise data protection to not only safeguard this information but also remain compliant with relevant laws and regulations.

Why protecting your customer's data is important

Data breaches are becoming increasingly common, and the consequences can be devastating for both individuals and companies. Should sensitive information like personal details or financial records be exposed, businesses face possible legal repercussions as well as potentially significant damage to their brand.

In this blog post, we're going to take a look at the importance of data security and compliance when it comes to managing your CRM, as well as share a few practical tips to help keep your business protected.

What does CRM management involve

CRM management involves the storage, organisation, and retrieval of data within a digital environment. It's incredibly important for businesses to diligently manage their CRM to ensure they have ready access to data when it's needed, as this allows the business to run smoothly. It's well known that accessible data can streamline processes, improve decision making and support business growth and for those reasons, and more, your CRM is a valuable asset.

All modern businesses rely heavily on data, so this makes having a well-managed CRM indispensable. Whether itâ€™s customer information, financial records, or inventory data, your CRM tool can store everything needed to run your business efficiently which highlights the importance of keeping it updated and secure.

Data security and compliance

Two critical aspects of CRM management are security and compliance. Protecting sensitive information from unauthorised access is essential to maintain customer trust and safeguard business integrity. Not only that, it's imperative that businesses comply with all legal and regulatory requirements to avoid penalties and damage to their reputation.

Any breaches of data can lead to severe consequences, including financial losses, legal ramifications, and reputation damage. Robust data security and compliance not only protects your business but also builds trust with customers.

Understanding data security

Data security refers to the measures taken to protect data from unauthorised access, corruption, and theft. It ensures sensitive information remains confidential, maintains its integrity, and is accessible when needed.

There are three key principles guiding data security: confidentiality, integrity and availability.

Confidentiality

Confidentiality refers to keeping information private and accessible only to authorised people. This involves implementing access controls to restrict data access and prevent unauthorised users from viewing sensitive information.

Integrity

Integrity ensures accuracy and consistency throughout the data lifecycle. This involves protecting data from unauthorised modifications and ensuring any changes to data are made correctly and appropriately.

Availability

Availability means data is readily accessible to authorised users when needed. This involves ensuring systems are reliable and that data can be retrieved quickly, even in the event of a hardware failure or cyberattack.

The importance of compliance in CRM management

What is compliance?

Compliance refers to following the laws, regulations, and guidelines that govern how businesses should manage and protect data. It involves implementing policies and procedures that ensure your business handles data in accordance with legal requirements.

Major data protection regulations relevant to Australia

Several data protection regulations apply to businesses operating in Australia, including the Australian Privacy Principles (APPs) and the General Data Protection Regulation (GDPR) for businesses with international operations. These regulations set out requirements for collecting, using, storing, and disclosing personal information.

Implementing security measures to ensure compliance

Understanding you need to be diligent and compliant with your database information is one thing, but it's another knowing what practices to adopt to meet these requirements. A good starting point is to understand and implement the security measures suggested by relevant regulations and then diligently implement security best practices.

Use strong passwords for all CRM access, and ensure they're changed regularly
Utilise encryption for sensitive data to prevent unauthorised access
Regularly back up your data and store backups in a secure location
Implement user access controls to restrict access to sensitive information
Conduct regular audits and testing of your security systems and processes
Keep detailed records of your compliance efforts including policies, audit reports and records of employee training
Establish and document reporting mechanisms for any compliance violations to ensure accountability and transparency
Consider using automated compliance software to assist management and monitoring of CRM security
Keep informed about any regulatory changes
Have scalable data management solutions

Data backup and recovery

Data backup and recovery are further critical aspects of effective CRM management because if there's ever a cyberattack or hardware failure, having access to backed up information ensures your business can quickly recover.

We strongly recommend you perform regular data backups and store them in secure locations.

Employee training and awareness

It's also vital that every employee who has access to your CRM understands the importance of data security and compliance. Best practice is to provide staff with ongoing training and regularly reinforcing practical strategies that can help minimise the risk of human error leading to data breaches.

Your next steps

As a business owner, it's your responsibility to ensure your CRM is secure and compliant with relevant regulations. This means understanding the principles of data security, implementing best practices and ensuring your system and processes comply.
Remember: your CRM is a valuable asset; so treat it as such by prioritising its management.

If you have any concerns that your CRM and record keeping could potentially fall short of compliance expectations, please reach out to us for advice. We can help identify potential vulnerabilities and identify what's needed to protect your data effectively. Our tailored software development services can then help safeguard your information while working with your business' existing systems so operations integrate seamlessly.

Prevention is certainly better than cure when it comes to information management, so call us for an obligation-free chat about your CRM needs today.