Loss of customer loyalty
While both public and private sectors continue to be plagued by large-scale data breaches and ransom-ware schemes, the increased awareness has not translated into increased preparedness.
In today’s society, data theft is a reality that organisations of all sizes and all industries need to be conscious of. Organisations, instead of asking “if,” need to be asking “when” they will be a victim of a data breach.
Unfortunately, there is an immediate impact on an organisation’s ability to properly handle transactions, conduct business, and best serve its customers. What most organisations are not prepared for are the ripples that don’t appear until several months or years down the line. The question we then pose relates to if there is a correlation between data breaches and customer loyalty – Would you continue to do business with a company who has lost all your personal information and/ or credit card details due to a data breach? We don’t think so…
In a recent survey conducted by Gemalto, 50% of consumers say they are unlikely to do business with a company where non-sensitive information has been stolen. 49% of consumers are found to be willing to take action against breached companies that have had consumer data stolen.
Due to this harsh reality, it is more than evident why the findings outlined 64% of consumers say they are unlikely to do business with a company where their financial or sensitive data was stolen. In this instance, the perceptions customers have of an organisation’s data security standards do have a significant impact on consumers’ willingness to continue engaging with a business.
Trust, in this case, is one of the most important components that is essential in building business relationships, especially for those that hold vast quantities of customer data.
Our advice – take action NOW to prevent breaches and thus a loss of customer loyalty!