If you're storing customer information in a CRM, you're handling personal data. That means GDPR applies to you, and getting it wrong can mean significant fines. But GDPR compliance doesn't have to be complicated, especially if you choose the right tools and follow sensible practices.

This guide covers what UK businesses need to understand about GDPR and their CRM systems.

The basics: what GDPR requires

GDPR (General Data Protection Regulation) sets rules for how businesses collect, store, and use personal data. "Personal data" means any information that can identify an individual: names, email addresses, phone numbers, and more.

The key principles that affect your CRM usage:

Lawful basis for processing. You need a legitimate reason to store someone's data. For most CRM use cases, this is either consent (they agreed to it), contract (you need their data to provide services), or legitimate interest (you have a genuine business reason and it doesn't override their rights).

Purpose limitation. You should only use data for the purposes you collected it for. If someone gave you their email to receive a quote, you can't automatically add them to your marketing newsletter without separate consent.

Data minimisation. Only collect and store data you actually need. If you don't need someone's date of birth for your service, don't ask for it.

Accuracy. Keep data accurate and up to date. Outdated or incorrect information should be corrected or removed.

Storage limitation. Don't keep data forever. You should have retention periods and delete data when you no longer need it.

Security. Protect personal data against unauthorised access, loss, or damage. This means appropriate security measures for your CRM.

Where your data is stored matters

One of the most overlooked GDPR considerations is data location. When your CRM stores data on servers outside the UK or EU, additional complexities arise.

For UK businesses, the simplest approach is choosing a CRM that stores data within the UK or EU. This avoids the need for additional safeguards like Standard Contractual Clauses that apply to international data transfers.

If your CRM does transfer data outside the UK/EU (which includes most US-based services), they should have appropriate safeguards in place. This is usually handled through legal agreements, but it's worth understanding where your data lives.

Ask your CRM provider directly: "Where is customer data stored?" and "What safeguards are in place for international data transfers?" A reputable provider will have clear answers.

Consent and marketing

The intersection of GDPR and marketing causes most confusion for small businesses using CRMs.

Enquiries and sales don't require consent. If someone contacts you asking about your services, you can store their details and follow up as part of legitimate business interest. They've initiated the relationship.

Marketing communications typically require consent. If you want to add someone to your email newsletter or send promotional material, you generally need explicit consent. This means a clear opt-in, not a pre-ticked box.

Existing customers have some flexibility. You can market similar products or services to existing customers under "soft opt-in" rules, as long as you gave them an easy way to opt out when you collected their details and in every subsequent communication.

The unsubscribe must work. Whatever marketing you send, recipients must be able to opt out easily, and you must honour that promptly.

Most CRMs have features to manage consent: consent checkboxes on forms, suppression lists for opt-outs, and audit trails showing when consent was given. Use these features properly.

Your obligations as a data controller

As a business storing personal data, you're a "data controller" under GDPR. This means you're responsible for how that data is handled, even if it's stored in a third-party CRM.

Privacy policy. You need a privacy policy that explains what data you collect, why, how long you keep it, and people's rights. This should be accessible on your website and referenced when you collect data.

Subject access requests. Individuals can ask what data you hold about them. You must respond within one month. Your CRM should make it easy to find and export all data about a specific person.

Right to erasure. People can ask you to delete their data (with some exceptions). You need to be able to do this, including from backups and any connected systems.

Data breach notification. If personal data is breached and poses a risk to individuals, you must notify the ICO within 72 hours. Choose a CRM with proper security to minimise this risk.

Records of processing. You should document what personal data you process and why. This doesn't have to be elaborate. A simple document describing your CRM usage usually suffices.

What to look for in a GDPR-compliant CRM

When evaluating CRM options, ask these questions:

Where is data stored? UK or EU storage simplifies compliance.

What security measures are in place? Look for encryption (both in transit and at rest), access controls, and regular security audits.

Can you easily export all data for a person? This is essential for subject access requests.

Can you delete individual records completely? Including from any backups or connected systems.

Does the provider have a Data Processing Agreement? This document defines their obligations when processing data on your behalf. Reputable CRM providers offer this standard.

What happens if there's a breach? Understand their notification procedures and your responsibilities.

Practical steps for compliance

GDPR compliance in your CRM is largely about sensible practices consistently applied:

Audit your current data. Do you have contact records you don't need? Outdated information? Data collected without clear purpose? Clean this up.

Document your lawful basis. For each category of contacts in your CRM, be clear about why you're storing their data. Leads from enquiry forms: legitimate interest. Newsletter subscribers: consent. Active clients: contract.

Set up proper consent capture. If you're collecting marketing consent through forms, make sure it's explicit (not pre-ticked) and recorded in your CRM with a timestamp.

Create a retention policy. Decide how long you'll keep different types of data. Old leads you never converted? Maybe delete after two years. Past clients? Perhaps keep for seven years for accounting purposes. Document this and actually follow it.

Train your team. If others use your CRM, they need to understand the basics: not sharing login credentials, not exporting data unnecessarily, reporting anything suspicious.

Review regularly. GDPR compliance isn't a one-time setup. Review your practices annually, or whenever something significant changes.

Don't overcomplicate it

GDPR can seem daunting, but for most small businesses using a CRM sensibly, compliance is achievable without specialist legal help.

Store data you have a good reason to store. Be clear with people about what you're doing with their information. Keep it secure. Delete it when you no longer need it. Respond to requests properly.

Choose a CRM that supports these practices with appropriate features and security. Ask questions of your provider. Their answers will tell you a lot about whether they take data protection seriously.

The businesses that struggle with GDPR are usually those who collected data carelessly, kept everything forever "just in case," and never thought about their obligations. Simply by reading this and choosing a compliant CRM, you're ahead of many.