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The true cost of losing your customer’s data

When it comes to running a business your customer’s personal information is your most valuable asset.

Not only do your customers trust you with their hard earned cash and take the time to research and invest in your product or service; they also hand over their personal details.

Even with a basic transaction a customer will give you their name, contact number, email address and in some cases, details about their financial institution, credit card and personal shopping preferences.

With any transaction, there is a certain level of trust. A customer trusts a business to deliver the promised product and that the quality of that product lives up to how it’s been described.

The other assumption of trust is that the business will securely store their customer’s personal data and not on-sell or make it publicly available.

Broken trust

Despite many company’s best efforts, this trust is broken regularly. Earlier this year, Salesforce, the giant marketing and customer analytics platform, experienced a full-day outage. The pain didn’t end there. When the database was restored, they wiped 4 hours’ worth of customer transactions and data – for all their users.

For businesses who use the Salesforce service, this was a massive disaster. Not only were they without the service for a whole day, they had lost the ability to contact and fulfil customer orders made during those 4 hours.

For any medium to large e-commerce site, this could amount to tens of millions of dollars of lost revenue and future marketing benefit.

It’s not just internet companies that have to be vigilant. Banks like Bank of America, Barclays and Lloyds have all had instances of customer data loss or malicious data hacks.

These sorts of breaches don’t only affect the customer relationship. They affect the confidence of shareholders, investors, staff and future customers.

In many cases, the share price and loss of revenue following a major breach is instant and devastating. The total estimated cost of Home Depot’s data hack in 2014 was $62 million. It can take years for a business to recover from these events, and even lead to their eventual demise.

Causes

While some data breaches are caused by malicious forces or hackers, not all can be explained away so easily. With Salesforce’s data loss, it was down to human error and a poorly restored database that caused the loss.

In other cases, technological error or process breakdown can be the key ingredient.

Even if your business succumbs to a data hack, leak or breach, there is no reason why this should mean you have to permanently lose that data and suffer the financial and reputational losses that come with it.

A secure, encrypted backup

 Customers with SOS Online Backup don’t have to worry about losing their customer data – ever. They have peace of mind.

Even in the worst case scenario where your systems are compromised, our secure, encrypted backups are bulletproof.

What does that mean? It means your files are never deleted. Documents, photos, databases and all file types stored on all your devices (yes, even your iPhone), servers, MS SQL, Exchange and SharePoint are all backed up and securely archived.

With so many examples from history where things have gone horribly wrong, there really is no reason your business has to suffer the same fate.

To protect your customer’s precious data, our business plans start from as little as $29.99 per month. Check out our plans or start a 30 day free trial here.