According to recent information, transparency pays when it comes to retail data protection as some consumers would pledge to shop more with retailers who are transparent about how they use their data.
Given the volume of data breaches we see in the news these days, consumers are more aware than ever about the importance of data protection and knowing more about how their data is used and shared.
The data about customers being happier to shop more with organisations when there is more transparency over retailer data protection policies is certainly food for thought in today’s globally-competitive market.
Consumers are paying attention
According to the latest report from Capgemini, Cybersecurity: The New Source of Competitive Advantage, almost 80% of UK shoppers put cybersecurity as an important factor when choosing who they shop with. On top of that, almost 70% are reportedly prepared to shop more with retailers where there is transparency over how their personal data is used.
In an age where top retailers are being subjected to massive cyber-attacks and data protection incidents, like Dixons Carphone who were hit with a massive data breach involving the data for some 5.8m credit and debit cards and 1.2 million personal records, we are seeing the trends in consumer habits that are directly linked to data protection.
These kinds of incidents put consumers off when it comes to choosing who they shop with. Retail data protection transparency will have a direct impact on profitability, as the research shows.
The massive TalkTalk data breach was also thought to have affected their customer numbers as well, which again serves to show the important link between data protection and profitability.
Shape-up or suffer
It’s clear to us that retailers need to shape-up and ensure they have proper cybersecurity in place and ensure they are transparent with the people whose data they hold. It’s not hard to do your homework and find out who has been fined and faced legal action as a result of data protection breaches, and with a far wider range of retailers in a global market, choosing who you shop with based on data transparency and data protection could easily become a norm.
Transparency pays when it comes to retail data protection, and businesses would do well to recognise this.