Is my database safe? Web based vs. Desktop Contact Management

Posted at 7:14 AM, Dec. 11, 2008

I would like to take a moment to ease some concerns about data loss that are either outright wrong, or simply overstated. They are: 1) Your data may not be safe with a Web based solution 2) Desktop solutions make your data vulnerable due to inconsistent backups

1) There are actually two sub-categories here. Some people are afraid that the web based provider may steal their contact database, and sell it.

There was an instance back in the 90's when a major franchise provided a Web based solution for its agents, and unbeknownst to the agents, their contact database was suddenly being deluged with e-mail and postal mail, soliciting the franchise's mortgage company, title company, insurance company, etc. In that case, the franchise claimed a right to the data. Whether or not the franchise was entitled to use that database was debatable, but it is quite different than a third party vendor doing it. Maybe that event is where this, what I consider to be irrational fear, came from.

That scenario is considerably different than a Web based CRM provider actually compromising their user's databases by selling the database, or soliciting to it. If they did that - their business would be over! It's that pure and simple. They would be found out in short order, and their business would be done. For what? For a few measly dollars that they could get for the sale of that data. I'm sorry - I just don't see it. Is it possible? Sure. Is it probable? Most certainly not. It takes a great deal of time and effort to develop and market a CRM solution. To then sacrifice all of that for such a minimal gain would be sheer lunacy.

Secondly - people are concerned that their online database will simply be hacked, and marketed to. Is this possible? Sure. Is it probable? With no statistical data to support this supposition whatsoever, my guess would be that it's about as likely as your personal hard drive being hacked, and having your database stolen from it. Very low odds. Getting hit by lightening also comes to mind. Also consider that Top Producer would be a perfect, well known target, and it has not happened to them since they went online with their data in 2003.

With regards to an online solution simply losing your data; they always have at least one redundant set of servers - a backup. That said, my advice has always been to do a monthly export of your data from a Web based solution. This leaves nothing to chance. While that export will not be a copy of all your data, it will be all or most of your contact data, normally including names, phone numbers, addresses, notes, categories, etc.

There is actually another topic that bears discussion here. That is the heavily blown out of proportion, and just plain misrepresented, topic of contact managers/CRM solutions who "hold your data hostage". EACH SOLUTION IS VERY DIFFERENT WITH REGARDS TO HOW MUCH DATA THEY MAKE AVAILABLE FOR EXPORT. My apologies for shouting, but this is one of the most overblown misconceptions in the industry. The answer to quelling that fear is simply to find out, before you decide on a solution, exactly which, and how many, fields are available for export from your chosen solution. Also consider weighting what data is most important to you. As long as you have the primary contact information, you have your inventory. As long as you have your sphere of influence's names, addresses, phone numbers, and e-mail addresses, you have far and away the most important information. Everything beyond that may seem absolutely necessary, but if you think about it, not having it would be a nuisance, but it would not put you back to square one, as losing your inventory would.

2) Having a desktop solution means putting your database at risk, as many agents are bad/inconsistent at backing up.

While this is a valid concern, it used to be true more than it is now. One of the reasons is that a significant number of agents have now been burned - lost their data. You have never seen more religious backer-uppers than those who have at one time lost their data ;-)

The next reason is that if you pick the right solution now, there are very often at least two copies of the data in two different locations. Consider that a significant percentage of agents have both a desktop computer, and a laptop/tablet PC, or simply two desktops. One at 'the office', and one at the home office. If that is the case, then the database is being shared between the two, hence two copies, and no need for a backup. For two of the contact management/CRM desktop solutions I sell, the "Master Database" may be stored on a thumb drive, which is used to transfer the changes back and forth between the computers, while each computer also has it's own copy of the database. This means there are three copies of the database. If you have two or more computers, backing up is not an issue. Those same two solutions offer to "host" your master database, making it available to be shared by any number of remote users/computers. This of course, once again, makes backing up a non-issue, as the master would be the third copy of the database.

For those agents who have only one computer, which is certainly still a significant percentage of agents who use a contact management database, there are better and easier methods of backing up coming out all the time. There are automated online services which back up your computer "in the background" with no effort from you whatsoever, other than the original setup. My personal preference fro backing up all my data can be found on my home page. But if you still do not back up consistently, then you will be in trouble some day. For those of you who know you will not back up consistently - get a Web based solution!  This will be a safer solution for you.

Once you have finally realized that you must have some kind of method to track and maintain a relationship with your sphere of influence, without a doubt, keeping that sphere of influence (your inventory) safe, is of paramount importance. Proper research and planning will ensure that it is given the attention it deserves.

Hope this helps!