Consumers Speak: Data Breaches Impact Customer Retention
Here’s some news that will surprise no one, but at the same time deserves some serious thought. Recently, SailPoint commissioned our 2011 Market Pulse Survey to help us gauge the impact that all-too-frequent data breaches have on consumer loyalty to banks, credit card companies and retailers. Not surprisingly, the survey confirmed that consumers are clearly frustrated with the proliferation of data breaches – and they are voting with their feet.
The 5,573 adults polled gave us a resounding answer about whether data breaches are impacting their loyalty: 20-25% of respondents would stop doing business with a company following a data breach. We also asked consumers about the shift to electronic health records, and we saw even more evidence of consumer fears about identity theft and loss of privacy. The key takeaway for me is that consumers are paying attention to how merchants manage sensitive data, and companies that do not act as trusted custodians will see a measurable impact to customer loyalty.
If you’re interested in our latest survey results, please see today’s press release for full details. And we’ve put together a graphical representation of the survey’s findings to better communicate all the numbers – check it out (click the graphic for a larger view):