Protecting Customer Data: How CRM Systems Help Ensure GDPR Compliance

As a business owner, you definitely process your customers' data. What can you do to ensure that you collect and manage them in a secure, compliant manner? Files on the merchants' computers are not enough. A secure database, such as a CRM system, can come to the rescue. Perhaps you're wondering if using such a database is GDPR compliant. Or maybe you need to take specific actions to adapt your CRM to GDPR?

In this article, I will explain whether CRM systems are adapted to the General Data Protection Regulation (GDPR) and how to take care of your customers' data using a CRM system.

What obligations does GDPR impose on entrepreneurs?

The introduction of the General Data Protection Regulation (GDPR) in the European Union has raised many concerns. There are still many misconceptions about it, causing hesitation in collecting and using personal data. On the other hand, it's clear that knowledge about the customer, including their data such as name, address, phone number, or email, is invaluable and even necessary for marketing and sales activities. How do you reconcile your customers' right to privacy with the need for personalized contact?

Compliance with GDPR does not mean you cannot process personal data; it means you must:

• Define the purpose of processing – know why you collect, store, or use data.
• Adhere to quantitative and time limits – collect only the data you need and delete data when its storage is no longer necessary.
• Obtain consent for data processing – the person whose data you process must agree, and they also have various rights, such as access, modification, or deletion.
• Protect the data you possess from unauthorized access – you are responsible for potential leaks or thefts.

On one hand, you probably see that complying with GDPR is a matter of respect for customers who have trusted you. On the other hand, these tasks may seem challenging, especially if you manage a large amount of data. This is where a CRM system can help you.

Some best practices related to data management in Marketing Automation systems are gathered in our blog article. However, CRM plays a special role among your tools. It is a central database that can be integrated with other applications. When you perform such integration, you can ensure that your data will be easily updated across all the tools you use.

So, how can a CRM system help comply with GDPR? In short: with CRM, you have all the data in one place, so you control it.

Now let's delve into the details.

Security of personal data in CRM

Unfortunately, we often hear about personal data in the context of leaks. The most spectacular ones can put a company on the front pages of newspapers – certainly not the kind of fame you desire. To protect against financial and reputational losses, you must first ensure the security of data storage.

Secure protocol

In CRM systems, communication between the user's browser and the server is secured using a secure protocol, most commonly https. This protocol ensures that data transmitted between the user and the system is encrypted, significantly reducing the risk of information interception by third parties. The use of transport encryption helps secure data during transmission, crucial especially when processing sensitive customer information.

Secure login

Login security is essential to protect data from unauthorized access. CRM systems introduce advanced authentication mechanisms, such as two-factor authentication (2FA). Two-factor authentication requires the user to provide an additional element, such as a code generated by a mobile application or received via text message, in addition to the standard password. This security measure significantly complicates unauthorized access, even if the password is stolen. Additionally, CRM systems monitor and log unsuccessful login attempts and provide account locking features after a specified number of attempts, reducing the risk of brute-force attacks.

Data access

management CRM systems allow assigning roles to users based on their functions in the organization. Each role has specific permissions, enabling control over the actions a user can perform in the system. This limits access to sensitive data only to individuals who actually need it to fulfill their duties. Moreover, you can specify who has access to specific customer records. This means that even within one role, users may have different access levels depending on the area of activity. Finally, all changes to data, access to information, and operations performed by users are logged in the system with date and time stamps. This tool allows tracking activities, helpful for both compliance audits and resolving situations where unauthorized access is suspected.

Cloud data

Most modern CRM systems operate in a cloud model, providing significant security benefits compared to traditional on-premise systems running on internal servers. This is particularly important for small and medium-sized businesses for which managing their own data centers would be too burdensome. Cloud providers invest in advanced data centers that are physically and operationally secured at the highest level. This includes access monitoring, alarm systems, cameras, as well as protection against natural disasters or emergencies. Providers also regularly deliver security updates. Customers automatically benefit from the latest security measures without the need for manual installation of updates.

Security embedded in the system

Security cannot be just an addition to the system. It is crucial for all functional elements to be designed and manufactured in accordance with the principles of the approach known as "security by design." This is the case, for example, in HubSpot: the system incorporates all necessary Enterprise-class solutions to ensure the security of system usage and data by authorized users. It also collects comprehensive information about changes made in each field of each data object, including data subject to GDPR regulations. If necessary, authorized users can provide a list of changes along with their source. Such information can be helpful in monitoring compliance with legal regulations.

GDPR-compliant CRM. Consent for data processing

Your customers' data in a professional CRM system are fully secure. However, it is essential to ensure that you only use data for which customers have given voluntary consent. Adequate CRM features allow you to obtain processing consents easily and ensure that appropriate information clauses appear wherever necessary, e.g., on website forms or in email communication.

Forms

CRM systems allow adding fields to forms that enable users to give consent to data processing. The form can include a checkbox or other interactive elements to allow users to consciously grant their consent. Information about granted consents is recorded in customer profiles in the CRM system. This enables clear tracking of which consents have been given and when and what information the customer provided. After obtaining a new consent, the system automatically updates the customer's profile and can send a confirmation of consent receipt.

Mailing lists

Subscription management tools for mailing lists are an important feature of CRM systems, making them competitive with specialized email marketing tools. Users can choose specific lists to join, allowing precise customization of content sent based on the recipient's interests. Furthermore, consents for receiving marketing information are centrally stored in the CRM system. CRM systems also allow easy withdrawal of communication consents. If a customer decides to unsubscribe, e.g., by clicking the opt-out option in the message footer, the system automatically updates the consent status in the customer's profile. This eliminates the risk of sending unwanted emails. The system can also enforce the inclusion of privacy policy information before sending certain types of messages, ensuring you never forget the necessary records.

Cookies

CRM systems allow the collection and storage of information about cookies used in marketing activities. This includes data on consents for their use and information about cookie preferences. Users have the ability to manage their preferences, and the system adheres to these settings during marketing activities. For example, if you use HubSpot CMS, you can easily configure cookie consent banners for your website. Cookie preferences are then stored within the customer's profile in the CRM system.

GDPR in CRM. Customer rights to data protection

Even if a customer has consented to the processing of their data, they still have full rights to manage them. In this area as well, using a CRM system gives you a significant advantage over collecting data in simple databases, such as Excel sheets.

Right to be forgotten

Data deletion CRM systems store customer data in a consistent and organized form. This makes it easy to identify and locate all data for a specific customer and ensure that it is deleted from the system according to their wishes. Data can also be automatically deleted if a customer expresses a desire to be forgotten, e.g., by clicking the appropriate opt-out option. To avoid accidental data deletion, CRM systems introduce safeguards such as confirmation before data deletion and options for data restoration within a specified time period after deletion.

Right to be informed and to change data

I have to repeat the same thing again... In CRM, you have all customer data in one place, so if a customer requests information about the data you have, you can provide it within moments. Similarly, you can quickly modify data in the record upon their request. CRM systems often allow the automation of the data update process and give customers the ability to independently update their data through a customer portal. Other update mechanisms include online forms or interactive elements on the website. Changes made by the customer are immediately reflected in all areas of the CRM system, eliminating the risk of data inconsistency.

How does a CRM system help protect personal data?

I hope you now have certainty that using a CRM system is not only GDPR compliant but also significantly facilitates compliance with its provisions. Thanks to a unified database, you can easily manage consents obtained from various sources and promptly respond to customer requests to exercise their data-related rights. In case of any doubts, you have access to knowledge about all changes in data and all communication with the customer. Additionally, a reliable provider ensures secure storage of your customers' data.

If you want to learn more about the capabilities offered by Customer Relationship Management (CRM) systems, visit our blog, where we regularly discuss the most important aspects of using CRM. Feel free to ask about any issues that concern you using our contact form. We will manage all your data safely and in accordance with GDPR!