Expert predicts greater pressure on senior execs to boost cyber resilience
The escalating threat from cybercrime is set to force companies into upping the skills of their boardroom executives in 2016, a global security and risk management consulting firm has predicted.
“There is a lack of specialist cyber skills in boardrooms worldwide, including Britain’s, which is likely to become increasingly clear as 2016 progresses,” said Ed Stroz, executive chairman of Stroz Friedberg, which specialises in cyber security, investigations, and intelligence.
“Companies are under growing pressure from investors, customers and regulators seeking reassurance that cyber risks are being actively managed and that they have the capability to deal with the aftermath of an incident.”
Stroz believes cyber trends – from hacktivist and insider threats to implications of potential cyber legislation in 2016 – will push corporate boards into reviewing their options to ensure they are better informed and comfortable making risk management decisions.
He explained: “Leading companies in high risk industries like financial services will appoint specialist, non-executive cyber directors. To further address the significance of such risks and get ahead of a potential corporate governance failure, organisations may also form dedicated cyber risk committees in the coming year,” he said. “Modelled on existing audit committees, the cyber equivalent will create a board-level focal point for cyber risk, with the support of independent advisers to help strengthen a business’ cyber resilience.”
According to Stroz, while cybercrime knows no boundaries, certain industry sectors are at greater risk.
“Financial services, particularly banks, are highly attractive targets. UK regulatory bodies are already taking steps to move cyber resilience up the agenda, with Operation Resilient Shield the latest example of cooperation between the Bank of England and other UK and US financial authorities, to stress-test key institutions’ responses to a simulated attack. As a greater understanding of the industry’s preparedness emerges, we will likely see regulators push the concept of ‘cyber competent’ persons as a requirement for boards,” he said.
Looking forward to 2016, Stroz Friedberg highlighted other areas likely to be impacted by developments in cyber security:
Cyber Insurance Premiums Skyrocket, Regulators Impose Carrier ‘Stress Tests’: Continued strong demand for cyber coverage will drive gross written premiums up in 2016, but constantly evolving threats, immature risk models, and an underdeveloped reinsurance market will also cause premiums to increase dramatically, particularly for retailers, healthcare providers, banks, and others considered high risk. Expect the uncertainty about concentration of exposure to lead regulators to impose cyber incident ‘stress testing’—modelling the impact of multiple, simultaneous incidents on cyber insurance carriers and, potentially, stopping those that fail these tests from writing new policies.
Insider Threat Looms Large: Until now, the business world’s attention has been focused squarely on external threat actors. But in 2016, insider threats – current or ex-employees with knowledge of, and access to, the corporate network – will take centre stage, forcing human resources leaders into the growing cross-functional cyber security team. Expect leading edge companies to start proactively addressing the insider threat risk by investing in technologies that identify, and in some cases prevent, insider threats before they cause material damage.
Internet of Things (IoT) Incidents Shift the Dialogue From Functionality to Security: Much like the 2014 spike in data breaches that propelled businesses to treat cyber security in earnest, 2016 will be the year of the consumer awakening. As a result of a major physical disruption—through the breach of a connected car, medical device, or weak security in a connected toy—regulators and consumers will demand action. Expect companies to spend untold amounts testing and retrofitting of IoT devices to meet hastily approved ‘privacy and security by design’ rules.
Data Processing and Storage Goes Local: The recent demise of EU-US Safe Harbour will continue to disrupt international data flows, especially when combined with huge fines for trans-border transfers, political disputes over alternatives, distrust of U.S. government surveillance and subpoena power, and expanding European nationalism. Expect this uncertainty to drive some EU companies to avoid doing business with the US altogether, while other multinationals will opt to segregate business functions geographically by building local cloud services and data centres that protect them from penalties.
Cyber Threats Influence the 2016 U.S. Election: During the U.S. elections in 2008 and 2012, threat actors targeted both presidential candidates’ websites and emails. Now that campaign websites are used to raise money, their desirability and profile as targets for hacktivists and cyber criminals alike, will increase. Expect to see U.S. primary frontrunners and eventual nominees from both parties successfully targeted, and at least one campaign undermined by a data breach. As the commercialisation of politics becomes ever more pervasive around the world, this targeting of political websites will expand globally, including to the UK.
Retailers need to deliver better rewards to ensure customer loyalty
- 62% feel retailers need to improve the ways they reward consumers for shopping with them
- 55% believe that loyalty programmes rarely offer them the things they actually want or would use
- 48% want retailers to focus on making the shopping experience better for them, rather than a loyalty programme
Rewards programmes are not delivering on their promise to drive customer loyalty for retailers, according to the latest research from Adyen, the payments platform of choice for many of the world’s leading companies. The majority of customers (55%) say that rewards programmes do not offer things they actually want and that customer experience holds almost equal influence when it comes to loyalty (48%).
The findings come from a report conducted by Adyen exploring how agility will be key for the retail sector as it emerges from the Coronavirus pandemic. The research polled more than 2,000 consumers in the UK in 2020.
The results showed that, while rewards and loyalty schemes are still welcomed by many customers, the majority (62%) feel that retailers need to improve how they reward their shoppers.
“Every customer counts – especially in the context of the pandemic. Anything retailers can do to keep customers coming back for more is worth exploring. But it goes beyond a loyalty or rewards scheme. The customer experience, both online and in store really matters. Making it as easy as possible to shop is equally as important as other incentives. And, if you do go down the rewards route, a one-size-fits-all approach rarely delivers. You must make the effort to understand your customers and offer something they really want,” said Myles Dawson, UK Managing Director, Adyen.
Nearly half of the respondents (48%) want retailers to focus on making the shopping experience better for them, rather than delivering a loyalty programme. When it comes to an experience that will drive loyalty, customers want a seamless link between online and physical stores. 60% of consumers said they would be more loyal to retailers that let them buy out of stock items in store and have them shipped directly to their home. And 53% said they would be more loyal to retailers that let people buy online and return in store.
“The high street is under increasing competition from online retailers who put convenience and usability at the centre of their customer experience. To succeed now, businesses must harness the best of their physical and digital worlds to create amazing experiences. This will increase conversions and also raise the prospects of customer loyalty.
“For those consumers that want loyalty schemes, it must be as seamless and easy as possible. 61% of respondents were more likely to shop with a retailer that linked their loyalty scheme to the payment card. By doing this, businesses can track customer buying behaviour and shopper data which lets them offer a more personalised shopping experience,” Dawson concluded.
The pandemic has changed consumer behaviour and retailers need to adapt
By Mary Keane-Dawson, Group CEO of TAKUMI
It’s no secret that the retail industry has been badly hit by the pandemic, with the recent collapse of Arcadia and Debenhams providing a harsh reality check as to what the future could hold for brick-and-mortar stores. With all non-essential shops being ordered to close last month, with no re-opening date confirmed, it is inevitable that a natural shift to online platforms would occur.
Online giants, ASOS and Boohoo, have established themselves as the new industry leaders. Both e-commerce giants bought failing Arcadia brands and Debenhams and ruthlessly closed all the retailers’ physical premises. The shift to online in the retail sector has never been more apparent.
Retail brands need to establish their digital presence to serve their consumers’ changing behaviour and to remain competitive in the retail industry.
Capitalising on changing consumer behaviour
The pandemic has meant consumer needs have adapted, which in turn has led to a shift in consumer behaviour. Retailers need to capitalise on changing consumer behaviour to remain relevant, but more importantly profitable.
The ‘stay at home’ message from the government, which has been almost constant throughout the past 12 months, has meant many consumers have started to become more reliant on online channels and platforms.
Supermarkets, such as Aldi and Co-Op, responded to this change in consumer behaviour by deciding to serve their customers on delivery apps, such as Deliveroo. As fewer people were ‘popping to the shops’ due to lockdown restrictions, supermarkets reacted by offering an instant delivery service, essentially where the ‘shop pops to you’.
The shift to online platforms and influencer marketing
Retail brands need to follow suit and adapt their ways of working to reflect this shift to e-commerce. Ted Baker, the premium fashion retailer, has admitted its disappointing online sales figures last quarter could be due to its slow response to the shift to ecommerce. The retailer is aiming to “significantly improve” its online shopping platform because of this.
As the shift to online platforms accelerates, retailers need to start investing in digital marketing, for example influencer marketing, to ensure their brand stays at the forefront of their consumers’ minds. Evan Horowitz, CEO of Movers+Shakers, a creative agency, explained in our whitepaper in August how the pandemic has led his company to increase its influencer marketing as “influencers are more influential than ever”.
As such, many traditional retailers have started exploring the benefits of influencer marketing. Wickes, in partnership with TAKUMI, launched the UK’s first ever home improvement industry TikTok campaign to reach a new audience with authentic and creative content and to drive awareness of its range of products. Our whitepaper, Into the Mainstream: Influencer Marketing in Society, which surveyed over 3,500 consumers, marketers, and influencers across the US, UK, and Germany, found that almost three-quarters of marketers (73%) upped spend on influencer marketing in the past 12 months, with spending significantly increasing in the retail (79%) sector.
It seems inevitable that more brands will continue to invest in influencer marketing with social media’s popularity increasing as we start to enter a post-pandemic world.
Using social media as a tool to respond to changing consumer behaviour
With marketers upping their influencer marketing spend, many social media platforms have also responded to the growing popularity of ecommerce.
Instagram redesigned its layout to ensure its Shopping and Reels tabs were given more prominence. The Instagram shopping feature allows brands to attach a virtual shopping tag to their ads on the platform. People can click on a tagged item and then be re-directed to the brands’ product webpage.
Similarly, TikTok’s rising popularity has led it to launch its own ecommerce offering. Last October, TikTok announced a partnership with Shopify. This partnership will enable Shopify merchants to create, run and optimise TikTok marketing campaigns that will attract consumers from TikTok’s growing user base.
Instagram and TikTok are slowly evolving from content platforms to ecommerce hubs. This transformation coincides with the rise in consumers shopping online following the pandemic.
What’s to come for retailers, post-pandemic?
Consumer behaviour is changing and the pandemic has accelerated the shift towards social media and ecommerce. Retail brands need to recognise that the shift to online is here to stay.
To remain relevant, brands need to allocate appropriate budgets to digital marketing channels. Interestingly, our whitepaper found it was marketers from traditional media channels that were increasing their influencer marketing spend the most, demonstrating that the shift to digital marketing has already begun. Retail brands need to start to prepare themselves for the post-pandemic retail environment to avoid ending up like Arcadia and Debenhams.
5 Trends Driving the Future of Customer Service in 2021 and Beyond
By Matt McConnell, CEO of Intradiem
2020 ignited radical shifts for contact centre operations with the move to a remote work environment. Our customers say this trend is more of a permanent transformation – one that uncovers trends that include more flexible operations and greater efficiencies in leveraging contact centre data.
Trend 1: The Remote Agent Model is Here to Stay, Permanently
Historically, many IT teams discouraged remote working for customer service teams, but it was quickly proven virtual contact centres could work and offered a significant upside. The average annual cost to physically house a call centre agent is approximately $8,300 per agent in the United States. If a 200-person contact centre decided to move only half of its agents to home offices, that translates to $830,000 in annual real estate cost savings.
Working remotely also opened the doors to reach talent and hiring beyond a specific geography. For example, call centres based in rural locations who may have exhausted their local talent pool can bring in quality agents from anywhere in the world.
Trend 2: The Role of AI will be to Support Human Agents, Not Replace
Despite many years of buzz, it’s worth acknowledging that AI cannot entirely replace one-on-one human interaction in customer service (yet, or maybe ever). Many interactions with chatbots or other entirely automated CX tools only drive the escalation of customer issues rather than resolving them at the first touchpoint.
Instead, AI is best used to assist and manage agents to help them work more efficiently. For example, AI-powered technology can reduce handle time by auto-populating call notes or automatically log agents into or out of applications to further save time.
AI will provide an added layer of support as a management tool to keep agents on track in remote environments. AI also enables better connectivity for customer service teams and enables agents to receive consistent communications and Information they need to excel in their role in serving customers.
Trend 3: A Swift Migration to the Cloud
Call centres have been notoriously slow to move to the cloud. In the past, this has not been an issue when centres use on-premise technologies. With fully remote call centres, companies must reconsider their approach to the cloud.
Call centres can no longer rely on on-premise data with a decentralised workforce. Often their information is locked up in data centres, while operations remain outside of the office. Moving to the cloud offers more flexible operations, easier access to data and substantial cost saving, but only if call centres tap the right partners to make the most of the shift.
Trend 4: The Emergence of Predictive Analytics
Call centres generate an enormous amount of time-sensitive data that must be gathered and analysed in real-time to effectively manage their operations. Without real-time capabilities, Insights gathered on a Monday may only be contextualised later that day or week. This is not impactful as the time to act has passed and call centre conditions have already changed.
Looking beyond 2021, we will see call centres take their analytics a step further to go beyond real-time analytics, and into predictive analytics. This will leverage real-time data at scale to offer preventive support to both agents and customers, moving call centres from reactive to proactive. Instead of waiting for a customer to call with an issue, centres can leverage historical data to reach out pre-emptively.
The same approach can be used to identify agents who struggle or may be experiencing burnout earlier in order to reduce attrition rates. A smarter mindset on data will revolutionise how call centres operate and in turn, companies will see higher customer and agent retention.
Trend 5: Real-Time Technologies Will Be Applied to the Back-Office
We will also see companies increasingly apply call centre technologies to their back-office operations. They will start to leverage back-office data in real-time to cut down on wasted hours and better track employee activities.
This part of the business has not been managed with the same technology investment as the call centre, leading to inefficiencies where back-office employees may struggle with certain tasks or spend time in non-work applications. Now, companies will be able to use AI-powered technologies to drive productivity gains in the back-office — leading to significant savings to the bottom line.
2020 served as the inflection point for call centre transformation. The shift to remote work unlocked new uses of technology and opportunities thought impossible before. We are now at the tip of the iceberg, as successful call centres will continue to innovate and think differently on how they can improve their operations in the new year and beyond.
Unexpected Growth Seen for Paint Additives Market by 2022 | Akzo Nobel NV, Arkema SA, Ashland Global Holdings, Inc
Future Market Insights (FMI) has offered a 5-year forecast for the global paint additives market in its new report titled...
Polymer Coated Fabrics Market Research Development, Top Companies, Trends And Growth 2017 To 2022 | BASF SE, Akzo Nobel NV, Saint-Gobain, PPG Industries, Inc
A new market study on polymer coated fabrics, published by Future Market Insights, reveals the changing demands for technical textiles...
Industrial Vacuum Cleaners Market Research Development, Top Companies, Trends And Growth 2018 To 2028 | Alfred Kärcher GmbH & Co. KG, American Vacuum Company, Nilfisk Group
This FMI study offers a ten-year analysis and forecast for the global Industrial Vacuum Cleaners market for the period between 2018 and...
Female Stress Urinary Incontinence Treatment Devices Market Will Exhibit a Steady 7% CAGR through 2029- Future Market Insights
The rising prevalence of urinary incontinence in pregnant women, stress urinary incontinence due to diabetes, gynaecology disorders, and urinary incontinence...
Venous Thromboembolism Treatment Market Study: Mechanical & Interventional Prophylaxis Systems Trend in North America
The global demand for venous thromboembolism treatment market is likely to grow steadily over the forthcoming years. As indicated by...
Aircraft Tire Market – By 2026 Top Winning Strategies, COVID-19 Impacting Factors, Business Strategies | Key Players – Bridgestone Corporation, Goodyear Tire & Rubber Company, Compagnie Générale des Établissements Michelin, Polymer Enterprises, Inc
Future Market Insights has adopted multi-disciplinary approach to shed light on the evolution of the Aircraft Tire Market during the historical period....
Vision Screeners Market CAGR Projected to Grow at 6% Through 2029
Global vision screener sales are likely to near US$ 500 Mn by the end of 2019. According to a new research intelligence study...
Home Sleep Screening Devices Market is Expected to Expand at an 8.4% CAGR Over 2018 to 2028 – Future Market Insights
According to the latest research by Future Market Insights (FMI), global sales of home sleep screening devices exceeded the revenues...
Fifth Wheel Coupling Market – Global Industry Analysis, Trends, Production, Revenue, Gross Margin Analysis and Forecast 2021-2028|Key Top Players- SAF Holland, JOST Werke AG, Guangdong Fuwa Engineering Group Co., Ltd., Sohshin Co. Ltd.
Future Market Insights has adopted multi-disciplinary approach to shed light on the evolution of the Fifth Wheel Coupling Market during the...
Automotive Sensors Market Report Analysis 2021 – 2028 | Global Industry Growth, COVID-19 Business Impact Analysis, Research Report, Trends with Top Key Players
Future Market Insights has adopted multi-disciplinary approach to shed light on the evolution of the Automotive Sensors Market during the historical period....