Cyberattacks are so bad for a business, but businesses can mitigate it by being transparent with their customers about their security and being open about how secure they are.
Cybersecurity focused startups can create trust with investors and loyal customers while preserving revenue and market share through their security measures.
Loss of Customer Trust
Firstly, a hack or data loss could also damage customer confidence in your company. Customers won’t want to buy from you if they are afraid it has been compromised before.
Customers require businesses to keep personal data they provide secure and be open about the processes they take when it comes to customer information, so having a cybersecurity program in place is a great way to demonstrate data security and earn customer trust.
Customers that believe their information including financial details are under threat will not buy your products or services which will result in revenue loss for you. What’s more, hacking can also have catastrophic implications for insurance coverage — especially if security measures were in place before a breach occurs.
Loss of Customer Loyalty
Reputation is a business’s greatest capital, so when there is a data breach, the impact on a business’s reputation is devastating, from lost sales and bad press, to fines and customer distrust. Customers will avoid companies they believe to be shaky, investors will think twice about buying in.
Cybersecurity is not an add-on; it is a must for every enterprise no matter how big or small. Brands that prioritize cybersecurity and engender trust in customers with transparent communications can develop loyalty long term that transcends the years.
Preventive cybersecurity programmes are not an optional extra for companies seeking to remain competitive. You can wreck reputation quickly – 20 years might be spent crafting it but minutes can doom it in one freak accident. This is why an effective cybersecurity program is not something to be skipped over.
Loss of Referral Business
Cyber crime is not only a burden for startups but also their reputation. Consumers and potential clients might be less inclined to do business with an organization if their personal data has been compromised.
As part of an attack, organizations can also be fined for data breaching. It can also ruin their brand as customers think they don’t take their legal responsibility seriously.
Start-ups can protect their reputations with strong cybersecurity controls and openness. Consumers appreciate companies that are transparent about their cybersecurity practices as that creates more customers who will use them again. What’s more, it’s always not enough security; anticipating and preparing for a cyber attack can help keep your brand safe longer.
Loss of Market Share
Cyberattacks can be catastrophic to companies of any size. Data theft, interruption of service, revenue loss, customer and investor relationships; cyberattacks are damaging on all fronts, including their ability to get your valuable data. Trust is easy to lose especially for smaller and obscure companies where clients and investors are quick to reject any damaged organisation.
The customer’s is more aware about cybersecurity and needs the companies to take the necessary precautions to secure their data. They’re also interested in transparency on security controls and incidents.
Cybersecurity is the thing startups should focus on if they are going to protect digital assets and gain customer trust. proactively security measures, effective crisis communications tactics during a crisis and reduce reputational harm and increase cyber resilience.
Loss of Revenue
There are also potential insurance, legal and regulatory compliance costs that businesses can incur that go beyond first-time economic losses from cyberattacks. All these costs add up and have the ability to depress sales for years after.
Customers aren’t going to do business with organizations that have been hit by breaches in the past, which limits e-commerce growth and revenue.
Cybercrime is a huge, growing problem and hackers have all kinds of motives – from personal money and information theft to social hacktivists wanting attention for their cause. Misbehaviour by employees can also result in breaches, so cybersecurity is an investment not something online startups can afford to overlook.
