A well-defined cybersecurity strategy can be a competitive advantage
Most often organizations define the value from cybersecurity in terms of regulatory compliance, risk management, or customer data protection. There’s no doubt that cybersecurity does help an organization improve its security posture, however, that’s not the only benefit.
The inability to connect security with the ultimate goal of any business — i.e. driving growth and profitability — can make it difficult to get buy-in from business leaders. Without clearly explaining how the lack of security can impact the bottom line, it would always be an afterthought.
And it’s not just about the penalties from non-compliance or the resolution costs after a data breach. It’s much more than that.
Why is cybersecurity a competitive differentiator for retailers?
Digital channels and customer experience are two of the most important factors driving business growth in recent years for retailers. Without a digital presence, it’s practically impossible to survive.
And when everyone is thinking about going digital or innovating fast to offer a better customer experience, what makes your business stand out?
Customers value cybersecurity and data privacy more than you think, even though they willingly share their personal details all the time. As per a recent survey by Capgemini, a whopping 77 percent of customers said cybersecurity and data privacy are the topmost reasons to select a retailer.
Though product quality and availability are vital for customers, nobody likes it when their favorite brands aren’t implementing the right security measures to protect customer data. This survey of 6,000 customers by Capgemini revealed interesting insights that can help retailers to think about security from a different prism.
Price isn’t what drives customers to your online platform: Surprisingly customers rank cybersecurity and data privacy over price when it comes to their reasons for selecting a retailer. Customers in India ranked cybersecurity as the number one factor, while it was the second-most important factor in Italy and Sweden.
Customer satisfaction depends on cybersecurity: Many retailers might be missing an opportunity by not realizing that cybersecurity can drive customer satisfaction. On being told that their primary retailer had implemented specific security measures, the share of satisfied customers witnessed a huge surge.
Stronger security posture can drive higher revenues: Around 40 percent of the customers would be willing to spend 20 percent or more if retailers assured them about data privacy.
Assurances about information safety, clear explanation about how data would be stored/used, and advanced security safeguards for websites and applications can go a long way in building your brand image in the customers’ eyes.
However, despite customer demand, retailers aren’t stepping up to ensure information security. There’s a clear gap between the assurances customers need and what retailers offer. In fact, most retailers are reluctant to even communicate about a data breach to customers.
Use personalization to build a strong brand
Establishing a strong cybersecurity stance can elevate your brand image and assure your customers that you’re mindful of their needs. This will give you a competitive edge over retailers who only focus on getting products to market faster.
By strategically using data, retailers can offer better experiences as well as protect their customers.
Retailers, these days, use many data points, such as device use, search history, previous buying behavior, etc., to personalize their offerings. This level of customer intimacy can help retailers to establish stronger authentication mechanisms for identifying customers. Some organizations are already analyzing data from each interaction to understand user behavior and utilizing that information to build secure identification processes for customers.
In the ever-changing online shopping world, the more you focus on security, the better it would be for your brand image.
Innovate fast, while staying safe
We understand ensuring security is not easy as there’s a constant war to outrun new entrants as well as the established e-commerce giants. On top of that, customers want better digital experiences almost every day. In the race to improve time to market, security can take a backseat.
However, ignoring security can significantly impact your brand image since customers these days are extremely particular about how their personal data is being used and what security measures are being implemented by retailers.
Secure digital experiences will continue to grow in importance through a combination of customer demand and regulatory pressure. Thinking about security by design or building security in your products from the beginning will help you stand out among retailers who think of security as a checklist item for compliance.
Learn how our Software Security Practitioner (SSP) Suites can help employees gain knowledge about industry best practices to improve security.