I am working with a client that used to be at one company, and she has recently moved. I wanted to update her contact information in CRM, but I didn’t want to just change her company information, for fear that I would lose all of her company information at her previous job. I used to work with another CRM software, and we were able to make a contact “inactive”, and then add a new contact with new company info. This was very helpful, because as you know….in this business, meeting planners jump and move companies a lot. And, it would help us keep our CRM current and relevant.
This is kind of a tricky issue, and there's no silver bullet. Generally, though our CRM system gives you the option to relate various records with either an individual contact or their company's account, we generally recommend relating them to the account, for precisely this reason. People come and go, and you want to have a stable place to keep a record of opportunities, documents, and communications. But, as you mention, you also want to be able to keep track of your relationship with an individual, even as they move from one company to another.
The first thing I would do is note in the contact's description that they "worked at Company X between these dates."
You're not going to lose any information if you move her to a new account. Much of the information, such as the records of past opportunities, and the record of events and documents assigned to the account, will remain related to the previous company. Some information, such as events, documents, or emails related to the contact will follow the contact even after she's reassigned.
Events (such as the records of phone calls or meetings) can be assigned to both an account and a contact. You may view any events that are related to the account and add this user as a related contact, or select any events that are related to the contact and add their old company as a related account. That way there'll be a record of those events with the account and also with the contact. And for future events, you'll be able to see which ones are for the old company, and which are for the new company.