TMCnet News
Retailers could increase annual revenue by as much as 5% by investing in cybersecurity measures that shoppers trustNEW YORK, May 9, 2018 /PRNewswire/ -- A new report by Capgemini's Digital Transformation Institute has revealed that cybersecurity is a new source of competitive advantage for retailers. It calls for more organizations to align cybersecurity policies with customer expectations to take advantage of this opportunity. The report, "Cybersecurity: The New Source of Competitive Advantage for Retailers" demonstrates that consumers are increasingly aware of security breaches in retail and are willing to spend more with retailers who demonstrate robust cybersecurity capabilities. Based on average annual consumer spending, this equates to a potential annual revenue uplift of 5.4 percent. The new report, which surveyed more than 6,000 consumers and 200 retail executives, found that 77 percent 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. Strong cybersecurity measures increase customer satisfaction by 13 percent; while 40 percent of consumers would be willing to increase their online spend by at least 20 percent more with retailers they trust. The report revealed that retailers who can adopt advanced cybersecurity measures could drive a 5.4 percent uplift in annual revenue. However, the report identified a disconnect between the assurances consumers want and what retailers are doing. Seventy percent of consumers want to be assured that their financial and personal information is safe yet only 44 percent 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 percent 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. "It's the right time for retailers to consider cybersecurity as a business priority at executive leadership level." "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." The report includes a series of practical recommendations based on the findings of the survey to help retail leaders address the increasing incidents of cyberattacks, along with the growing demand from customers for greater transparency, Priority 1 – Work to understand customers' expectations and ensure the required features are fully implemented Priority 2 – Ensure cyber-defense systems are one step ahead of hackers
Priority 3 – Position themselves as the safe custodian of customer data Research Methodology A copy of the report can be downloaded here. About Capgemini Visit us at www.capgemini.com. People matter, results count. About the Digital Transformation Institute [1] Figure 20 of Capgemini Cybersecurity: The New Source of Competitive Advantage for Retailers report
View original content with multimedia:http://www.prnewswire.com/news-releases/retailers-could-increase-annual-revenue-by-as-much-as-5-by-investing-in-cybersecurity-measures-that-shoppers-trust-300644734.html SOURCE Capgemini |