In 2017, 43% of cyberattacks in Australia targeted small businesses. Of those, 22% are now no longer in operation.
The common theme regarding why these businesses closed wasn’t so much fines and compensation but lack of trust and confidence, resulting in loss of customers.
After many years of working tirelessly to build your brand, it can be destroyed within minutes.
The attached article is a must read for any business owner especially those handling personal information with privacy obligations.
Some key takeaways of the article include:
- Social media is giving customers even more power to make or break a brand
- Privacy regulations globally are becoming stricter and businesses are in a precarious position
- Trust is vital to the bottom line and building customer capital, and can be an insurance in a crisis
- Transparency is key in collection and use of customer information, and the handling of a breach when it occurs
- Businesses need to prioritise disclosure and transparency with customers
- It is how organisations handle the breach from beginning to end that will have a lasting impact on customer trust and public perception
- A well-handled breach can restore and even enhance brand reputation
- Customers are becoming savvier and it’s the brands who can show what lengths they are going to, to protect their data that will succeed in the end.
Lastly, a great learning from the recent Marriott data breach. Although overall, they handled the breach reasonably well, their communication to customers lacked empathy and leadership. There was no expression of regret and most importantly, it did not appear to come from the top.
From a customer’s perspective, business leaders must take responsibility for the breach and be seen to be doing so.
Enjoy the read…..