Consumers are becoming increasingly aware of security breaches in retail and are willing to spend more with retailers who demonstrate robust cybersecurity capabilities, a new study suggests.
Some 79% of UK shoppers say they consider cybersecurity as a top criteria when selecting retailers, with more than two-thirds (68%) willing to shop more with retailers that are transparent about how they use personal and financial data, finds Capgemini’s latest report, Cybersecurity: The New Source of Competitive Advantage, which surveyed more than six thousand consumers and 200 retail executives to find out how cybersecurity is being used in the retail space.
Substantial cybersecurity measures increase customer satisfaction by 13%, with 40% of UK clientele say they would splash their cash by 20% more with a retailer they trust. This figure is higher for retailers are who are able to adopt advanced cybersecurity measures, capable of driving a 5.4% uplift in annual revenue.
Even so, there is a discrepancy between what customers want and what retailers are delivering.
Forty-four percent of UK retailers said that they experienced a data breach over past three years that meant customers’ financial and personal information was compromised, while a fifth (21%) of UK shoppers said they heard their primary retailer’s name mentioned in connection with a data breach case.
“Today’s consumers are confident online shoppers and savvy about their consumer rights. They value cybersecurity highly, and they want to shop with retailers they can trust,” said Geert van der Linden, cybersecurity business lead at Capgemini’s cybersecurity practice.
“It’s the right time for retailers to consider cybersecurity as a business priority at executive leadership level”.
“Cybersecurity represents a lucrative opportunity for retailers to improve customer satisfaction and drive higher online spending,” said Tim Bridges, global sector lead, consumer products, retail & distribution at Capgemini.
“Only retailers who are able to effectively align their cybersecurity measures with customer expectations will be able to impact top-line revenue.”
Many retailers have not fully implemented the cybersecurity factors that can drive customer satisfaction the most. These include encryption of stored data, clear and transparent data privacy policy, use of advanced anti-malware tools, control on which data retailer can store, and for how long and use of advanced data encryption on websites and apps.
Image: Fotolia
