Data hacks have proven to affect customer loyalty by 15 percent in 2021

It has been increasingly observed that with the onset of more online businesses due to the pandemic, we have also faced as many data breaches and privacy leaks that the internet has yet experienced. Due to the growing theft, many companies were concerned about losing customers however surprisingly, that wasn't the case.

YouGov conducted a survey comprising of 17 different key markets to evaluate the ratio of the users that have changed networks due to privacy breaches. Although we expected the number to be higher, only 15% of the customers switched their providers for the given cause.

Others that changed brands had various other reasons. For instance, lying about product performance, example the efficiency, is on top with a rate of 31% users. Next on the list is poor treatment of employees; 23%, tied by product failures with the same rate, with the practice of making excessive profits following closely behind at 22%. Poor environment was the last on the list before data leaks was mentioned.

After these theft issues, users also claimed to change their networks based on a dominant position in the market with 14% users while companies that took extreme measures to maximize their tax bills were also disliked by securing 14% too.

It might come to you as a surprise that users living in different regions had different reactions to these hacking issues. The Asia-Pacific market was seen switching networks instantaneously when compared to the West. This might be because of lack of awareness about security in the West or lack of trust in the East. As a result the users that changed their networks due to this issue accounted higher in Hong Kong (30%), followed by Singapore (25%), then by Indonesia (24%) and China (21%). The last on the list was Denmark (5%) while combined, the issue caused a global change of 15% of the users.

It was also observed that users in the US were more likely to change brands when compared to users in the UK. Based on this report and a little influence from the European Union's General Data Protection Regulation i.e. the GDPR, China also is in the process of conjuring up a similar legislation.

Lastly, the report informed us that age also played a significant role in determining these changes. It was observed that younger customers (17-18%) were seen switching a brand for these reasons more often than older customers (12%). The reason could be more awareness amongst the youngsters. Since they are usually more informed about the consequences of such breaches, it is only natural that they wouldn't want to stick to such a brand. While older ones do have a tendency of giving more chances, a majority was found not making any such decision.
How do data leaks affect customer loyalty?
How do data breaches affect customer loyalty?
Data hacks have proven to affect customer loyalty by 15% in 2021
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