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Data Retention & Deletion: A Startup’s Guide

Managing customer data responsibly is both a compliance requirement and a trust builder. Here’s how SaaS founders can set practical, effective data retention and deletion policies from day one.

Why Data Retention & Deletion Matters

  • Regulations (GDPR, CCPA, SOC 2) require you to define how long you keep data and how you delete it.

  • Clear policies reduce legal risk, boost customer confidence, and streamline audits.

Common Pitfalls

  • Keeping all data forever “just in case”

  • Not knowing where old data lives (forgotten backups, logs, exports)

  • No process for deleting data on request or after a customer leaves

  • Assuming cloud providers delete data automatically

Visual illustration of the SaaS data lifecycle showing stages: collected, stored, used, retained, and deleted with an audit loop.
The SaaS data lifecycle—from collection through secure deletion—with regular audits to ensure compliance and control.

Quick-Start Checklist

  • Inventory what data you collect, where it’s stored, and why you need it

  • Define how long you’ll keep each type of data (by contract, regulation, or business need)

  • Document your deletion process (manual or automated)

  • Set up reminders to review and purge old data regularly

  • Train your team on retention/deletion procedures

What to Do Next

  • Start by mapping your data flows and storage locations

  • Draft a simple retention schedule (e.g., “Customer data: 3 years after account closure”)

  • Test your deletion process to ensure it works

  • Update your privacy policy and customer contracts to reflect your approach

Want help building a data retention policy that fits your SaaS? Schedule a call with Lodestone Security Group for hands-on guidance.

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