Oct 02
“Breakup by breach” – how to avoid the new relationship death

“Breakup by breach” – how to avoid the new relationship death

Consumer data: the information trail customers leave behind as a result of their Internet use. It has become an extremely valuable commodity – some suggest it is the new oil. Prominent magazine Economist even talks about a “rise of the data economy”. So what’s the big deal with consumer data?

Well, as it helps companies understand consumer behaviour such as buying habits, it’s the base of any customer relationship. And even though (good) relationships are an amazing thing, they can also be fragile and take a long time to build up. As we all have been taught, you can’t hurry love.

Hence, trust is a fundament for a relationship. This can be illustrated by the fact that a whopping 89% of consumers will avoid companies that they believe do not protect their privacy. Do these consumers suffer from relationship anxiety, an irrational fear of intimacy? Not really. According to the new Breach Level Index (BLI), the number of data records compromised in publicly disclosed data breaches surpassed 2.5 billion in 2017 – up 88% from 2016. Whether the result of intentional hacker attacks or innocent mistakes, the cost for businesses can be significant. Not only is the financial cost hefty; there is also a reputational cost. Analytics firm KPMG says 33% of all consumers would take an extended break from shopping at a firm after a breach.

This shows that for every company who cares about consumer love, there is a very solid need for businesses to create and maintain an updated incident response plan.

If you want to learn more about data breaches and how to make sure you respond to them quickly and efficiently, take a look at our webinar on data breach management.

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