Brand Loyalty Hinges on Security

In 2005, more than 52 million account records were reportedly stolen or misplaced, according to a study by CMO Council and Opinion Research.

An article on ClickZ.com points out that consumers are increasingly concerned about companies they do business with and have no problems going elsewhere if they feel their personal data is at risk.

A total of 60 percent of consumers interviewed in the survey said they were more, or very, concerned about security, with only 10 percent answering they were not concerned at all, the article reports.

The study also found that when choosing a company to do business with, 62 percent ranked honesty and ethics as important and 33 percent ranked security to the customer as important.

According to the article, while security ranked fourth in importance, the majority of customers said they will back out of a transaction in progress if they feel threatened.

“Security is what I call the 800-pound gorilla of reputation,” Jeffrey Resnick, EVP and global managing director of Opinion Research, told ClickZ. “Clearly, consumers are very concerned about security, and when they have security issues during a transaction, they don’t hesitate to stop the transaction. Consumers feel corporations have a responsibility to provide end-to-end security.”

Personal security experiences are also a major factor for consumers, ClickZ reports. Statistics show that a company has lost or compromised the personal, financial or medical data of 53 percent of U.S. respondents. Additionally, 60 percent of U.S. respondents have experienced computer security breaches, intrusions, hacking or other disruptions, like viruses and spyware, at home.

Many consumers will look for other brands, products or services when they feel their security has been threatened, as 43 percent of U.S. respondents have stopped a transaction online, on the phone or in the store at a point when they began to question security. When a security breach does happen, 36 percent of U.S. respondents wait to see how the company or regulators respond, and 34 percent consider taking their business elsewhere. According to ClickZ, if a security breach happens, a company’s response is tantamount to retaining its customers’ brand loyalty.

Compiled by Paul Kerstein

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