Maintaining strong customer relationships is critical to the growth and stability of any organization. It costs nearly five to ten times more to gain a new customer than to retain your existing customers. According to the U.S. Small Business Administration and the U.S. Chamber of Commerce, sixty eight percent (68%) of customers leave because they are upset with the treatment they received.
When your organization negligently loses or has consumer information stolen, you must notify all of the exposed individuals according to the state law where each of them is a resident. If you have not taken appropriate steps before the breach occurred to secure the lost information, then your customers will feel violated and mistrust your establishment.
According to the Ponemon Institute, in the event of a breach... 31% percent of your affected customers will terminate their relationship, 57% percent will lose trust and confidence in the company, 8% will file formal complaints (lawyers), 72% said there is a great chance they will become victims of Identity Theft.
As the saying goes, “A happy customer will tell someone, but an unhappy customer will tell ten people.”
“A defensible position to safeguard your reputation must be maintained through customer awareness and ongoing employee training in your privacy, security, usage, and notification practices.”
A Medium to Large Organization A Small Business
