E-commerce

Retail cybersecurity considerations for improving the digital customer experience

Christos Kalantzis, SVP of technology and R&D at SecurityScorecard, explains why retailers must implement best practices for securing customer data and maintain regulatory compliance as they undergo the transition to online models.

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December 10, 2020

The recent public health crisis has dramatically impacted the way customers shop. In response to this shift, many retailers have found themselves transitioning to online models that aim to build an engaging and highly-personalized digital customer experience and maintain customer loyalty.

However, it is important that retailers implement best practices for securing customer data and maintain regulatory compliance as they undergo this transition. Otherwise, they run the risk of putting business-critical data, as well as that of their customers, into the hands of cyber adversaries looking to exploit vulnerabilities within the customer journey

What is the digital customer experience?

The digital customer experience is the sum total of any online interaction that a consumer has with your brand. This includes all touchpoints across social media, blogs, web, mobile apps, chat bots, and any other form of virtual communication.

Leveraging the digital customer experience allows retailers to create a cohesive brand image and more clearly and comprehensively communicate their message to customers. This, in turn, creates strong brand advocates and improves customer loyalty.

5 tips for improving the digital customer experience

While digital avenues can provide additional opportunities to personalize the customer experience, they also open retail businesses up to new cybersecurity threats that specifically target vulnerabilities in these connections, such as phishing scams and returns and payment fraud.

Below, we explore five key considerations for improving the digital customer experience without compromising security:

1. Understand the impact of poor cybersecurity

The first step to successfully designing a secure digital customer experience is understanding exactly what will happen if you let cybersecurity fall through the cracks. According to Ponemon's Cost of a Data Breach report, cybersecurity attacks cost an average total of $3.86 million. In addition to financial implications, your organization is likely to experience damages to reputation and sales should it be hit by an attack. When you have an understanding of the business disruptions your organization may be faced with, the need for a comprehensive security risk management program that keeps the customer experience top of mind becomes clear.

2. Balancing the digital experience and cybersecurity

It can be tempting to dive into all of the possibilities that digital enables when building the customer experience, but it's critical that organizations find a balance between CX and cybersecurity. Failing to do so can actually lead to more business disruption, especially if customer data is being mishandled or compromised. Organizations who have successfully found a middle ground put this data at the center of their security strategies and within the digital experience itself. Once a balance is achieved, not only is security strengthened, but the experience is improved by minimizing the risk of exposure. These actions strengthen security and foster a seamless digital journey for customers.

3. Establishing controls for prioritized customer journeys

Buyer personas can be helpful in determining common customer journeys. This outlines the expected series of events for various types of customers and actions, similar to an attack journey. By gaining an understanding of the potential engagements and customer touchpoints, controls can be put in place to proactively secure any vulnerabilities. This also includes vulnerabilities in in-store IoT devices, which many retailers have adopted for improved business operations. These initiatives can be further informed with cyber threat intelligence, or data that can be leveraged by organizations to gain a better understanding of past, current, and future threats.

4. Customer data privacy and protections

Customer data collected by retailers can be used to drive business growth by helping to inform future decision-making around new products or services. That said, while people want and expect an experience that is personalized and engaging, they also expect their sensitive information to be protected by the various entities that collect it. The consumer landscape is shifting, and today, customers are more informed than ever before when it comes to their purchasing decisions. For this reason, it's crucial that your organization takes existing requirements and legislation such as the General Data Protection Regulation into consideration when designing the digital customer experience. As these regulations continue to expand, continuous compliance monitoring will be critical to ensuring all gaps within your cybersecurity controls are covered.

5. Business and cybersecurity teams should collaborate

A common pain point for customers is the complexity of the controls associated with digital touchpoints. Sometimes, customers may be asked to confirm numerous multi-factor authorization requirements, creating unnecessary work for the user and additional work on the back end for cybersecurity teams. Collaboration between cybersecurity teams and marketers can help to cut down on these additional steps and further streamline the digital customer experience.

Final thoughts

As the world adjusts to a new normal, many retailers are rapidly shifting focus to the digital customer experience. While an engaging and personalized CX can create additional business opportunities, it also opens networks up to additional cybersecurity risks that previously did not exist. This puts not only your organization's sensitive data at critical risk, but also your customers' data.

Designing a secure customer journey can seem labor and time-intensive, but when compared to the lasting impact of a data breach, it's far better to take the time now to establish effective security measures that can protect critical data as well as facilitate a positive experience for shoppers.

Christos Kalantzis is the SVP of Technology & R&D at SecurityScorecard.