How Data Security Can Boost Your Retail Profits in 2020

Although we live in a world where concerns over data security are at an all-time high and countless billions of dollars are stolen in cyber-attacks, not all industries have responded appropriately. Many cybersecurity pundits have observed that the retail industry is one of the worst performers when it comes to digital security, often failing to get even the most basic best practices in place.

This is a problem not only because cybersecurity failures can negatively affect customers, but also because they can severely impact your bottom line. Data security best practices can not only keep your company, employees, and customers safe, they can also boost profits. Here’s how. 

Reduce Losses from Cyberattacks 

On a more obvious level, rigorous data security can reduce the chance of your retail business suffering debilitating losses as a result of an attack or hack. Last year alone, two-thirds of all retailers in the US reported to experience some kind of successful or attempted cyber-attack, with tens of billions being stolen in the process. High-profile victims included Niemen Marcus and Macy’s, but small and medium-sized retailers were not immune. Protect your bottom line with proper data security. 

Capitalize on Reputational Boosts

One of the most significant costs of cyber-attacks on retail businesses is the reputational costs. Customers will not want to use a service that they perceive as being insecure or vulnerable to hackers, identity thieves, and financial criminals. In other industries, brandishing one’s cybersecurity credentials is already standard practice.

Take a look at the online casino gaming industry for instance, which processes the financial information of millions of customers. The international online casino NetBet makes it abundantly clear to customers that they are secure when playing real-money games by highlighting all of its secure payment software at the bottom of their homepage. That’s invaluable PR.

Data Security Encourages Innovation

Data security not only prevent breaches, but it also encourages innovation within the workplace. A recent survey of CEOs by the security firm Cisco revealed that 71% of business leaders believe that poor data security is impeding innovation in the workplace. This is partly because when cybersecurity breaches do occur, so much employee time and manpower are dedicated to fixing the problem.

When your most talented employees are focused on cybersecurity concerns, your retail business will have less time and energy to implement new ideas and grow. Getting solid data security practices established from the outset will give you the space you need for innovation.

A Secure Workplace is a Productive Workplace 

The retail industry is more vulnerable than others to the problem of high employee turnover, with retail having by far the highest turnover rates in the US. Losing employees and having to constantly recruit new ones is a major barrier to profit. If you’re struggling to retain staff, then data security should be at the top of your list of priorities.

Employees who feel trusted and secure, without having to worry that they will be held responsible for hacks or data breaches, are more likely to be happier and productive. If you want to retain your most important assets – your employees – then you need to begin implementing data security practices today.

There are many ways that retail businesses can improve data security, with encrypted apps, secure payment platforms, two-factor authentication for customers, and more all being easy options. In 2020, cybersecurity is too important to ignore, so get started today.