Technology Reseller v41

Brand and Reputation Consumers who switched some or all of their business to anotherbrand in the last year Consumers who admit they now retract loyalty faster than they did three years ago Customer Loyalty is Fickle 61% 77% Brand and Reputational Harm 46% 38% Like ransomware, downtime also entails hidden costs. If either extends to external customers, the reputational harm and diminished brand equity can exceed both the ransomware payment and the operational costs associated with an attack. Customer loyalty is increasingly fickle. According to one study, 61 percent of consumers switched some or all of their business from one brand to another in the last year, and 77 percent admitted they now retract their loyalty more quickly than they did three years ago. 1 Considering the equity businesses have worked for and invested in for their brands, a one-in-three chance that ransomware further impacts their customers and, in turn, their reputation is a significant and potentially costly risk. Regardless of their valuation, businesses spend a significant portion (in the neighborhood of seven to eight percent 3 ) of their revenue on sales and marketing to raise awareness of their brands and be top-of-mind for their audience. An attack, or the resultant downtime,that extends to a customer or partner could undermine any equity a business has accumulated through ad spend, social media buys and other advertising and marketing channels. Brand valuation is an inexact science. Some methodologies combine the financial performance of the underlying products or services, the role the brand plays in purchase decisions, and the brand’s competitive strength. Other methodologies focus on brand equity among the target customers, how much extra a buyer is willing to pay because of the brand, or how much additional market share it allows a brand to capture. 2 Businesses whose brand or reputation were harmed as a result of a ransomware attack Businesses that experienced ransomware whose clients were also impacted In our study, 46 percent of businesses that experienced ransomware said their clients were also impacted, and 38 percent said the attack harmed their brand or reputation.