Providing top-notch cybersecurity and data protection could raise retailers’ sales revenues by around 5%, with consumers willing to spend more at merchants they can completely trust, a new study by Capgemini has found.
Capgemini surveyed 6,000 consumers and 200 retail executives worldwide in their recent report “Cybersecurity: The new source of competitive advantage for retailers”. The results showed cybersecurity was the third most important factor when consumers were deciding on which retailers to shop with, surprisingly outranking both brand reputation and discounts.
Around 40% of consumers say they would increase their online spending if their main retailer gave them particular assurances. In all, enhanced cybersecurity and data protection could create a 5% increase in revenue, Capgemini estimates.
“Many companies have invested significant amounts of money in programs to improve cybersecurity – the protection of consumer data, enterprise information, and intellectual property,” Capgemini said in a press release.
“But while cybersecurity is often seen in terms of the cost of mitigation – or the ramifications of a breach – it is also a business driver and can be a source of competitive advantage in the retail sector.”
High profile data breaches – some accidental, some malicious – have made data security a major worry among consumers, but many retailers have yet to implement a sufficiently robust cybersecurity framework to protect them from threats.