The cybersecurity report by Capgemini demonstrates consumers are aware of security breaches in retail and are willing to spend 5% more with retailers who demonstrate robust cybersecurity capabilities.
The report calls for more organizations to align cybersecurity policies with customer expectations in order to take advantage of this opportunity.
200 retail executives found that 77% of consumers ranked cybersecurity as the third most important factor when selecting retailers, behind product availability and quality, and above traditional factors including pricing and brand reputation. The report revealed that retailers who are able to adopt advanced cybersecurity measures could drive a 5.4% uplift in annual revenue.
The report identified a disconnect between the assurances consumers want and what retailers are doing. 70% of consumers want to be assured that their financial and personal information is safe yet only 44% of retailers are actively informing them. Retailers are also not adequately informing their customers of data breaches. Forty percent of retailers said they experienced a data breach over the past three years (2015-2017 inclusive) and had customer financial or personal data compromised, yet only 21% of consumers say that they heard their primary retailer’s name mentioned with a data breach.
“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,” says Geert van der Linden, Cybersecurity Business Lead, Capgemini’s cybersecurity practice.
“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,” added Bridges.
The report includes a series of practical recommendations, based on the findings of the survey, to help retail leaders to address the increasing incidents of cyberattacks in retail, along with the growing demand from customers for greater transparency.
Capgemini surveyed 206 executives at the director level or above, with 71% of the executives in retail companies with reported revenues of more than $1 billion in FY 2016. Capgemini also surveyed 6,120 consumers aged 18+. Both surveys took place from January to February 2018, and covered nine countries–France, Germany, India, Italy, the Netherlands, Spain, Sweden, the United Kingdom, and the United States.