What is a key data management strategy to avoid unnecessary storage in a CRM?

A key data management strategy to avoid unnecessary storage in a CRM involves moving old CRM data into a data warehouse. This approach supports efficient data management by transferring less frequently accessed data to a separate repository specifically designed for long-term storage and analytics. By doing this, the primary CRM system remains lean and optimized for current, relevant data that supports day-to-day operations.

Data warehouses are equipped to handle large volumes of data and provide analytical capabilities, allowing organizations to still access historical data for reporting and analysis without cluttering the CRM. This not only helps in maintaining optimal performance of the CRM system but also reduces costs associated with data storage and management within the CRM environment.

In contrast, having multiple active CRM systems could complicate data management and increase redundancy, while restricting data entry procedures might limit the business’s ability to capture comprehensive information. Increasing data retention periods generally leads to more data accumulation, countering the goal of minimizing unnecessary storage.