Data Breaches – Can You Stand To Lose Customer Loyalty?


 

Data breaches have quickly become one of the most important security topics that a business must consider. While most companies understand the importance of network security as it affects them financially and legally, some may not realize the impact these infringements can have on customer loyalty. The best way to prevent leaked information from destroying a great customer base is with the right managed IT services that effectively handle these issues by providing effective security solutions.


Risks to Today’s Consumers is Real

Security breaches have increased substantially in the past decade. All types of companies can find themselves dealing with the theft of sensitive information if they do not employ effective managed IT services to protect their networks. If this were not bad enough for the business itself, these violations also can affect the customers whose personal and financial information gets into the wrong hands.


Customers who entrust a business with this sensitive information are especially at risk, with the rising number of identity theft cases proving this every day. Even worse, the effects of information theft may not be realized for some time after significant damage has already been done. Therefore, it is important that a company understands how their customers also face negative effects from a data breach due to poor network security.


Consumer Perceptions and Security Threats

As security issues increase and consumers are affected by data breaches, internet users as a whole have become more wary of all websites. With an estimated 3.5 billion personal records stolen in the past few years, a whopping 75 percent of surveyed consumers believe that many business websites are not secure enough, causing them to question whether or not to use those sites. Consumers are becoming more knowledgeable about security infringements, including the ability to identify dangerous websites and phishing scams that either have stolen or attempted to steal personal information. Many users have been affected by information theft before and are more wary with good reason.


Data Breaches Affect Customer Loyalty

Maintaining a customer’s trust with the most secure managed IT services is an essential part of keeping them loyal. Yet due to increasing concerns regarding data breaches, companies that have experienced these infringements see a direct reduction in their customer base as a result. There is a growing fear of information and identity theft today, prompting consumers to turn to companies that have taken the right efforts to prevent data breaches.


A recent study looking at the effects information theft has on businesses indicates that as many as two-thirds of consumers would consider ceasing business relations with a company that has experienced a serious network security issue. Losing this many customers at once could be devastating for most companies.


The important lesson to learn from this is that consumers are aware of the threats to their information and rely on the businesses with whom they entrust that information to keep them safe. To avoid lost customers due to a data breach, a company must practice effective network security by implementing the right managed IT services and solutions to keep them safe. Maintaining a solid customer base requires that a business provide the best protection of their consumers' information!