How Strong Data Security Can Be a Competitive Advantage for Your Organization
In the past, your organization may not have put a lot of thought into data security. In the paper-based world, or even the early days of digitizing everything, there didn’t seem to be as much of a need to keep all of your information locked down.
But now that everything is electronic, large databases of information have become digital gold, and there seems to be a massive attack every week. By now, you’ve probably gotten it into your head that data security is important for keeping the bad guys out, but have you ever considered data security as a competitive advantage?
Strong Data Security Can Bring in Business
If your organization is proactive about its cybersecurity and implements the best practices necessary to safeguard its data, it can have a competitive advantage over others in your sector.
Not every organization puts this effort into its defenses, which makes those that don’t do it much more susceptible to suffer from data breaches. If the other major players in your industry are hit by large attacks, the fallout could end up being beneficial for your company.
These breaches endanger the data of many customers, robbing them of their privacy, and potentially making them victims of crime. Even if the breached company does its best to rectify the situation, it will still have severed the trust its customers had in it. If your organization is renowned for taking its security seriously, data breaches among competitors can turn into opportunities.
A 2019 study from IBM and the Ponemon Institute found that data breaches caused abnormal customer turnover of 3.9%. This figure implies that breaches can be the last straw for almost 4% of their customers, causing them to seek out a competitor instead. That’s a significant amount of business up for the taking, and a good cybersecurity reputation could lead much of it to fall into your company’s lap.
Poor Data Security Can Turn Away Customers
The other side of this is that if your company neglects its cybersecurity obligations and suffers a breach, then it may see a similar reduction in its revenues, alongside the range of other costs associated with cyber incidents.
Other surveys imply that data breaches can be even more harmful to future revenue. A study from Varonis indicated that just 17% of people would be willing to do business with a bank after a data breach. The same study found that only 20% would be willing to visit a hotel that had been breached, while 42% would shop at a retail store.
While these are significant numbers, it’s worth noting that just because people say they will avoid a certain business in a survey, it doesn’t necessarily mean they will end up doing it.
Take Your Data Security Seriously
There are many reasons to be thorough and proactive about your organization’s data security. Having a competitive advantage over other businesses is just one of them. It’s also important for protecting the privacy of your customers, as well as keeping your company away from the financial liabilities that come with a breach. These include fines, restitution, investigation and recovery costs, and also business disruptions.
No business can handle every aspect of its security by itself, so partnerships with trusted specialists are essential. If you really want to start taking your company’s data security seriously, you can help relieve yourself from some of the burden by teaming up with LuxSci.
LuxSci is HITRUST CSF certified and offers a range of secure and HIPAA-compliant services, including secure email, HIPAA-compliant marketing solution, high volume email, web hosting, and much more. Contact our team to see how we can help your organization protect its future.