| Online security failures impact the whole business
New research by LogicaCMG reveals that more than one in 20 consumers have experienced an attempted or actual theft of financial or personal details whilst carrying out online transactions such as banking and shopping. As well as the risk to their finances, this also has an emotional impact, with four in ten (43 percent) respondents comparing their experience to being robbed, and three in ten (31 percent) reporting mistrust in the website or company. The research illustrates that businesses need to be aware that if consumers are let down by online security, they're willing to take direct action. Almost a quarter (24 percent) of disgruntled shoppers defected to an alternative online brand, 23 percent decided never to buy anything from that company again, and over one in ten (12 percent) "badmouthed the firm to friends and family." Not surprisingly, security is their most important concern. Nearly three quarters of UK consumers (73 percent) cite security as more important to them than price, quality or convenience when shopping online. More worryingly for retailers, 70 percent of consumers would boycott a website, even if they only had word of mouth evidence that the brand had been involved in a security scare. And it seems that if a customer gets their fingers burnt by an Internet security breach, this can lead to them cutting all ties with a retailer. When consumers were asked if they would continue to buy goods or services in the future, should personal or financial information be stolen after shopping online, 79 per cent of those surveyed claimed they would stop shopping online with their most trusted brand and two thirds (65 percent) said they would stop purchasing with that company altogether-either online or at the brand's high street stores. However, some consumers would be less reluctant to bar all online purchases if retailers could ensure that their online sites are safeguarded. One in five claimed they would need to be more convinced by retailers that their financial and personal details are secure. Proving that "the rumour mill" is a powerful tool, one in six consumers said hearing word of mouth through a friend or family member who has purchased online successfully would further encourage them to purchase from that brand.
•Date:
9th July 2004 • Region: UK / World•Type:
Article •Topic: Retail
sector |
