Retail analytics can provide companies of all sizes with a significant advantage in the market. However, the use of any kind of software that deals with large amounts of sensitive customer data can make a business the target of cybercriminals.
It's natural to want to make the most of these systems, but in doing so, you need to ensure that you are putting the correct resources into your cybersecurity systems and operations. In this article, we'll look at seven ways retail businesses can benefit from the power of retail analytics tools without compromising their cybersecurity measures.
1. Leveraging customer insight without overreach
Retail analytics have become a major part of good working practices for both eCommerce businesses and physical retail stores. But just as it is important to recognize the huge range of possibilities that analytics can provide to businesses, it is also vital to be aware of what is responsible, and what is permissible, within the law.
Simply put, there are many regulations in place that have been specifically designed to protect customers from having their data used in ways that is deemed to be outside their interests. In practice, you need to think of customer data as something that you can only collect when you have a need for it.
Rules like the EU's GDPR and California's CCPA can impose fines and other strong penalties on companies that do not follow the correct process, or store data that they don’t have permission for. Ultimately, it is up to your business to be aware of customer data laws in the areas you operate and ensure that you stay within them.
2. Partnering with security-conscious software providers
Not all retail analytics systems are created equal, and when you are deciding which one is going to be best for your business, make sure that you factor security into the equation. When you use third-party software, you need to satisfy yourself that you feel it has strong security protocols, and that it's a company that you can trust to do the right thing.
"You can't over emphasize the importance of security when it comes to retail analytics," says Daryl Fuller, CEO of Retail Report. "Our clients rely on us to have robust measures in place. The consequences of any kind of data breach or security weakness can be disastrous, not only for any individuals involved but also to the reputation of the business. We make it a priority."
Make sure that when you're considering different providers you look at the security features that they offer. Of course, it will depend on the specifics of the software, but look for security protocols such as two-factor authentication when logging in and data encryption.
3. Optimizing inventory management securely
Getting inventory management right is another key in modern retail, but doing it in a way with security in mind is crucial. It's not surprising, then, that 45.5% of retailers say that they have increased their budget for loss prevention and asset protection.
Managing your inventory spans more than just avoiding unnecessary loss. For example, one of the most powerful forms of inventory management are those that can help you to track supply versus demand throughout the year. This is critical as it can allow a retailer to predict specific demands on the inventory without having to retain excess customer data and potentially risk a data breach of a significant number of customers.
4. Optimizing inventory management securely
A major area of growth for retail analytics has been the use of predictive analysis; this has been especially prominent in the eCommerce sector. This type of predictive analysis can anticipate customers' needs based on similar customers' buying habits. This can also do a great job of promoting loyalty to your brand and increasing return customers.
This kind of personalized shopping recommendations can open up a wide range of possibilities, including encouraging existing customers to buy new products or to shop with you more regularly than they currently do. But personalization also comes with potential cybersecurity weaknesses that your company needs to address.
For example, it should be the case that any customer data that is stored is anonymized and also completely secure.
5. Utilize secure payment analytics
Analytics can be used specifically as a security tool, and this can be an important way to protect both your business and your customers. When we talk about secure payment analytics, we are looking at technology that can monitor transactions in real-time and reduce the risk of payment fraud.
"Ensuring payment security is critical for businesses to safeguard funds, as well as the sensitive information of customers, suppliers, and employees," says Charlotte Russell, writing for Telleroo. "Vital against online payments fraud and cyber threats, payment processing security preserves business intelligence and fosters trust."
Having these kinds of systems in place helps to balance the analytical tracking of customers, and also the need for monitoring for security purposes.
6. Invest in relevant training for staff
When you think about staff training for analytics, your mind might naturally consider the focus to be around finding efficiencies, better ways of working, and opportunities to make the company more money. And, of course, training staff on powerful retail analytics tools can be a crucial way to do these things. But if the focus is only here, you are missing vital security training.
Too often when companies think about training cybersecurity, they think that it's a simple matter of learning security best practices. But this kind of approach to security training simply isn't enough. In reality, best practice in security changes on a regular basis; forward planning and staying up-to-date with the latest threats is vital in maximizing your defenses.
Training should be conducted often, with staff being given an insight into the way that cybercriminals are operating and how this can directly affect the work that they do on a day-to-day. This is especially true in regard to any new pieces of analytics technology or software that they are making use of.
7. Regularly audit and update analytics systems
When it comes to cybersecurity in retail, it is important to always take a proactive approach to how your business operates. It is still the case that the majority of cybercrime is able to occur because companies have failed to update their software, and this software is then compromised by a known threat that could have been avoided.
As such, regularly auditing your analytics systems and software is essential. This can provide you with an understanding of what you need to update, and what you can do to keep yourself as protected as possible.
Security must be a priority for retail analytics
Cybercrime is still rising, and retail businesses, especially those with a strong eCommerce presence, can be a tempting target. It is vital, then, that businesses in this sector are willing to put in the budget and the effort to stay secure. Retail analytics systems can provide a huge range of advantages to companies in the industry, but trying to implement them without robust security measures can end up being damaging to the company.
You don't have to compromise your security to benefit from these systems; it simply is something that has to be made a priority.
