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Caution! Shifting Consumer Opinion Ahead

To examine changing consumer sentiment and behaviors around data security, we conducted a survey
of 2,000 US consumers with a household income of more than $25K. We found that almost half of
respondents have had their data compromised, 89 percent no longer trust their data is safe with a
company and a mere three percent feel data security practices in the US are sufficient.

Furthermore, shifting perceptions of data security have even begun to impact consumer spending
decisions. Our survey found that a majority of Americans decide where to shop and how much to spend
based on a brand’s security practices, with nearly 80 percent reporting their spending habits have
changed based on how secure they perceive a brand to be. The research also found that 83 percent will
stop spending with a business for several months following a data breach and more than a fifth (21
percent) of consumers will never return to a brand that’s been breached. In addition, the survey found
that 45 percent will spend less with brands perceived to have weak data security. These findings
underscore that brands should and will be held accountable for the frivolous management of data, and
should serve as a wake up call for retailers around the world.

Resolution! Tread Carefully
For any retailer, the changing sentiment around consumer data security should be taken seriously. In
today’s competitive commerce landscape, it’ll be more important than ever for brands to address and
resolve all concerns around data security in order to remain in their customers’ good graces. But what
would make consumers feel safer? According to our research, 42.2 percent want companies to receive
regular security audits, 31.2 percent want brands to forgo requiring social security numbers for
transactions and 23.3 percent want businesses to be required by law to protect their data.

For businesses that have been hacked, there is a silver lining. Consumers can be encouraged to forgive
a lapse, but it comes at a price. In order to gain back trust, 41 percent of consumers say they want the
brand to admit responsibility and take steps toward improving security efforts, while 26 percent would
prefer a third party to confirm the company is secure before spending with them again. 21 percent go an
extra step further and want companies to announce PCI or GDPR compliance to earn back trust. In total,
88% of consumers require businesses to make additional investments in security after they’ve been
hacked.

With cybercrime at an all-time high, and consumer trust at an all-time low, retailers must understand the
consequences of poor data security practices. As consumer sentiment continues to shift, it’ll be critical
for retailers to invest in the right solutions to protect consumer data and remain compliant, while
understanding the appropriate steps to take in the event of a breach.

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