Consumers are willing to spend more online with retailers who demonstrate strong cyber-security and data privacy, new research has revealed.
Digital transformation institute Capgemini reported that more than three-quarters (79%) of consumers ranked cyber-security as a top concern when selecting retailers to buy from. Just under two-thirds (65%) said they would would stop or reduce transactions from retailers as a result of a data breach.
The report, ‘Cyber-security: The New Source of Competitive Advantage for Retailers’, polled more than 6,000 consumers and 2,000 retail executives.
Ryan Wilk, vice-president of customer success at NuData Security, said: “Online retailers should make efforts to move away from the outdated authentication models that rely on password/username combinations, in favour of all-encompassing authentication tools, such as multilayered solutions that include passive biometrics. Fifty per cent of consumers who took the survey feel highly sensitive about cyber-security and data privacy, and over 40% of consumers are willing to increase their online spend if they receive assurances that build their trust. These new trends underline that a company’s security framework can have a direct effect on a company’s revenue.”