How can privacy investing increase sales?
When we consider that global cyber security spending is expected to exceed 1 1 trillion by 2021, it becomes quite clear that companies are much more willing to spend money to fight cybercrime. Although a large number of initiatives are jumping on the bandwagon of "increased cyber security spending" - there are still a significant number of organizations that either cannot afford a portion of their budget for security or simply do not care enough about cyber security. Invest in it.
However, with global security regulations tightening and regulations such as the GDPR (General Data Protection Regulation) and the California Consumer Privacy Act (CCPA) being implemented, many companies have now found a new way to look at privacy investing. . Instead of coming to terms with the importance of heavy security and private investment, companies are now beginning to see privacy investing as a way to avoid penalties.
On the surface though, it may seem that while there is nothing wrong with investing in privacy to avoid harsh fines, companies are actually starting to treat privacy investments like insurance rather than ways to increase sales. Despite the recently enacted regulations such as GDPR and CCPA, companies dedicate a portion of their budget to cyber security spending, the process of financing the security system can become much more profitable if companies realize that a strong cyber security infrastructure can contribute significantly. Increased sales as well.
So far, all that we have mentioned, especially the belief that security investing is a run-of-the-mill approach, is widely accepted in the current IT landscape. A recent survey conducted by Cisco challenges all these beliefs, paints a very positive picture of investing in cyber security and privacy and suggests that every single dollar invested in privacy is capable of generating multiple returns on product sales and so on.
In an effort to change the widely held belief that investing in privacy and security only meets the rules, we have compiled an article that discusses Cisco's survey and the insights it generates in more detail.
What were the revelations revealed in a survey conducted by Cisco?
For the 2020 edition of their Data Privacy Benchmark Study, Cisco conducted a double-blind survey of 2,800 security professionals in thirteen countries. The goal of the study was to find out the privacy credentials used in today's IT market, and subsequently, the values that those credentials carry.
In addition, Cisco's survey also decided to calculate ROI for privacy - an achievement completed for the first time - and based on data from 2800 companies to generate the following insights:
- The survey asked selected companies about previous investments in cyber security and estimated the amount of privacy and security investments to be up to $ 1.2 million. For small companies with approximately 250-499 employees, the average amount of privacy investment is up to $ 800,000.
- As far as returns on security investments are concerned, the survey revealed the fact that for every dollar spent, the average company received an added benefit of $ 2.70. When surveyed companies were asked about their annual privacy investments, most companies claimed they were getting extremely positive returns, with 40% of companies realizing they could double their personal investment.
- Another positive aspect of investing privacy in Cisco’s data privacy benchmark is that 70% of companies believe they are seeing significant returns across multiple aspects of their business. Areas in which privacy outside of compliance is best reflected include better agility and innovation, and increased competitive advantage, improved consumer confidence and the overall attractiveness of the company to investors.
- In addition, Cisco's survey also paints a positive picture for private investment, with eighty-two percent of companies viewing privacy certificates as the motivation to buy a trusted third-party vendor.
What do the insights generated by the Cisco survey mean?
Perhaps the biggest way out of the insights we've outlined above is that instead of treating privacy investments as a burden that you're forced to deal with - companies should look at ways in which they can enforce privacy beyond the need for consent.
Some of the more significant effects of the survey, which organizations need to consider, include the following:
- Instead of spending a minimal amount on security systems, companies should try to increase their cyber security and privacy costs, as most companies are seeing great returns on their personal investment.
- Companies should work to obtain external privacy certificates, as they are an important purchasing factor when selling a seller or product, according to 82% of survey respondents. Some important privacy certificates include ISO 27701, and the EU / Swiss-US Privacy Shield.
- Last but not least, companies should increase accountability and a certain level of maturity to achieve security benefits, and reduce sales delays and other benefits.
In conclusion:
At the end of this article, we can only hope that we have made clear to our readers the importance of privacy beyond the need for consent. Having said that, we believe that changing the way we view privacy investments can do a lot for cyber security in general.