Corporate data breaches and security incidents pose a growing threat to businesses around the world. Such events are increasingly common, with companies and organizations from Google to Sony to the Stanford University Hospital falling prey to data breaches, news of which was subsequently splashed across national headlines.
Incidents like these, combined with the increasing number of ways to track what people are doing online, are affecting consumer attitudes. Edelman’s new global study, Privacy & Security: The New Drivers of Brand, Reputation and Action Global Insights 2012, reveals that seven in ten people globally are more concerned about data security and privacy than they were five years ago, and a full 68% believe that consumers have lost control over how online personal information is shared and used by companies.
Businesses, however, are not doing enough to meet these concerns. A majority of people (57%) report either no change or a decline in the security of their personal information in the last five years. This is problematic, because consumers think that businesses should be grappling with these issues and that it is their responsibility to do so. The vast majority (85%) say businesses must take data security and privacy more seriously, and a plurality say businesses – as opposed to governments or individuals – are responsible for protecting the security of their personal information.
Edelman’s study also indicates that data security and privacy issues have the potential to affect a businesses’ bottom line. Customers are taking data security and privacy into account at the checkout counter; surprisingly, when it comes to smartphones, personal computers and tablet computers, data security and privacy are as important to them as a product’s design, style and size.
Businesses are also suffering from a trust deficit due to peoples’ concerns about data security and privacy, particularly in the financial and retail sectors. While 92% of people say security is important to them in when doing business with the financial sectors, just 69% trust the industry to protect their personal information – trust lags by 23 points. In online retail, the gap is even more dramatic. While security is important to 84% of those doing business with online retailers, just 33% trust them to protect personal information – a 51 point gap.
To earn people’s trust in their ability to protect data security and privacy, businesses must manage these issues like a core competency, engaging with them in a meaningful way on a daily basis. Businesses that ignore data security and privacy do so at their own peril, because consumers will abandon companies they do not trust to protect their personal information. Those that prove willing and able to manage data security and privacy effectively, however, will bring unexpected value to consumers around the world by demonstrating that they understand the importance of protecting the information people hold most valuable.
Read the full study here. We’re keen to hear your thoughts…