Using CRM Systems to Keep Up with Legal Compliances

Image2The laws are in place to protect you as much as they are to protect your customers. Sometimes they seem to get in the way, and some laws are inefficient (and later repealed). But you probably need to see the bigger picture.

That extra piece of info may make a difference between giving your client exactly what they need. To the legislator, the question is, what happens if you lose or misuse that data? Not every business/site owner will have as noble/ethical intentions.

Customer data laws are necessary, but how do you keep up with these rules and regulations? One way to make this easier is to use CRM systems to the best of your ability. Here’s what this is supposed to look like.

Data protection

One of the key tasks of CRM apps is to gather customer data. The problem, however, lies in keeping this data safe after collecting and storing it.

You’re probably collecting data either way; with CRM, you can set up how. The safest data collection practice is the minimization of collected data. This means that you take only what you need from your customers. In your CRM, you can set up all the necessary information. You can choose what should be collected and stored and what should be ignored.

Other than this, the data you’re collecting needs protection every step of the way. This is why data encryption plays a huge role in data protection. With a good CRM system on your side, you’ll get this data encryption by default. Even more importantly, you get data encryption every step of the way. This means that data is encrypted in transit and in storage alike.

The way CRM software gathers data is even more reliable than doing it through cookies. The consent management feature ensures that you’ll always have the documents you need. This will ensure that you remain compliant with demanding regulations like GDPR and CCPA. For real estate agents, utilizing a specialized CRM can streamline operations and ensure adherence to legal standards.

This is more useful than you think. The jurisdiction of GDPR expands to everyone who does business with EU entities, not just businesses from the EU. A similar thing goes for CCPA and California.

Contract management and documentation

CRM can help you improve data management. It’s not just about collecting data and getting consent; it’s about keeping them well-structured and organized. It’s about keeping it all in one place.

Every time a customer clicks that they agree with you, a sort of contract is formed between the two parties. The problem is that some contracts can be disputed, while others are just really filled with gaps. You should use CRM software to make better contracts. With more iron-clad contracts, you’ll save yourself a fortune on legal fees. You’ll also cut mediation time short.

While there’s a joke that good mediation leaves everyone equally dissatisfied, in reality, this is not a good thing. A dispute can leave a bad taste in one’s mouth, no matter who comes out on top. Better contracts can be a way to avoid this.

One of the biggest improvements that come with a robust CRM system is version management. You see, customer data is updated with every interaction. While this historical data may have some value (for analytical purposes), it’s more important to ensure that it’s up to date.

With a CRM, you automatically get advanced version control and a simple way to manage duplicate content. For those who put special emphasis on record-keeping, this is the most effective way of staying up to date.

Communication And transparency

Another thing that a CRM does is give you a way to collect and access important information via a single platform. This means that all this data is centralized and that every single one of your employees needs to get this data from the platform. The data of every single customer ends up in the same database, which means that there are no talks of unfair treatment.

A CRM also ensures that all your traffic is actually human. With the use of CRM, you have a better shot at detecting bots early on. This way, you won’t have these bot visitors corrupting the data integrity.

In other words, customer data is treated fairly, accurately, and responsibly, which allows you to keep up with many legal compliances.

Now, imagine a scenario where something does go wrong, and you’re trying to get to the bottom of it. Better yet, imagine a scenario where an official investigator is supposed to conduct an audit. The only way to prove your innocence or that you made a mistake (and not acted in bad faith) is for the audit to be as thorough as possible. With a good CRM, the audit trail of your customer data will be significantly more dependable.

The collaboration between your employees is also a lot easier since they all get data from the same platform. As a result, if there’s a leak, you have an easier time figuring out the culprit.

Handling customer complaints

Every customer can file a suit. In fact, a person sued Red Bull for not growing wings and even got quite a bit of money in the settlement. While some of these ridiculous claims seem nonsensical, they’re not just opportunistic. They’re also made in bad faith, which often comes from frustration.


What this means is that, for the majority of customers, the first instinct is never to sue. Instead, they’re usually willing to give you a chance to make things right. Even if you fail, upon seeing your best effort, they might reconsider. Even if it comes to the legal resolution of the issue, they might consider taking a softer stance and settling earlier.

Non-surprisingly, customer RELATIONSHIP management software helps you boost customer relationships. One of the ways this is done is through customer service and resolving customer complaints.

With the help of this system, you can track problem resolution through all stages. This way, you can see where things get stuck. You also see where things spiral out of control. All of this analysis provides you with an insight into what should be improved.

Employee training

You can also use CRM tools to facilitate onboarding after a successful hire. You can also use it to make the training process more efficient.

People learn best from the example, and with the help of a well-set CRM, you can show them exactly what to do and what not to do. For starters, you can instruct them on how to set the data gathering parameters in order to stay within the GDPR and CCPA compliances.


Then, you can use it to set up role-based access and training paths. Not all of your staff members will have access to all the customer data. This means that you can use the CRM to restrict their access and allow them to see only the files that you intend to tamper with directly.

Most importantly, the CRM can be integrated with learning management systems. This type of integration can streamline the entire process, making it more effective.

Also, both the CRM and training modules are mobile-accessible. This means that they’re more convenient for your employees, but you also need a strong BYOD policy.

CRM systems can do more than just improve customer relations

CRMs gather customer data and centralize it all in one place. While this sounds pretty simple, it’s a process that’s so essential that using it in the wrong way can spell a disaster for your enterprise. At the same time, realizing its full potential can make keeping up with compliances a lot easier. It’s up to you to decide whether figuring it out is worth it.