The significance of data for business growth can not be underestimated. And the fact that data is critical for decision-making and overall business operation increases the importance of data protection.
This is true for the eCommerce industry, which is growing rapidly thanks to tech development and the fact it gives customers outstanding and smooth shopping experiences. As eCommerce businesses continue to grow and prosper, data security is becoming more important than ever.
Thus, eCommerce businesses should focus on creating a strong data protection system. In this article, we will convert key strategies online stores can implement to protect their and customer data.
Main Benefits of Data Protection for eCommerce Businesses
There is no doubt that data plays a significant role in decision-making and overall business growth. So let’s discuss why eCommerce companies should care about protecting that valuable data.
✓ To protect payment information
Successful eCommerce businesses and decentralized eCommerce marketplaces maintain sensitive data, like customer information, product information, and financial records. Thus, it is vital to protect payment information from any security breaches, whether from unauthorized access or theft.
✓ Prevent fraud
One of the main perks of following data security measures is avoiding identity theft and payment fraud. Thus, eCommerce businesses can secure their buyer’s financial data and prevent financial losses.
✓ Build credibility
Data loss and breaches can damage the store’s reputation; thus, having a strong data security system can boost brand reputation and credibility. Moreover, companies with a strong reputation can attract and retain customers.
✓ Increase customer trust
Customers will shop at eCommerce stores when they know that eCommerce store cares about protecting their sensitive data and prioritize data protection. This is vital for word-of-mouth marketing efforts, as eCommerce buyers will recommend their family and friends to a business that takes data protection seriously.
✓ Improve business continuity
Following data protection best practices and having recovery plans can guarantee eCommerce business continuity.
✓ Increases sales
By employing effective data protection measures, eCommerce stores can boost sales, as chances are higher that customers will purchase from businesses that prioritize data security.
Six tactics eCommerce companies can protect both their and customer data
Now that we’ve discussed the advantages of data protection for eCommerce companies, we will shift to policies that companies should implement to successfully protect customers’ data from security threats.
1. Safely back up your data
One of the first steps that eCommerce companies should take to protect both their and customers’ data is data backups. Basically, this involves creating copies of crucial and sensitive data and storing them in a separate location.
Regularly doing data backups can help ensure that customer data is not lost in case of malicious actions. Data backup is an essential part of running a successful eCommerce site. Thus, it is crucial to do regular audits also help you stay on top of the latest threats and ensure that your data is always safe.
There are several tactics you should follow to make the process more effective. First, define what data you should back up. It can be valuable customer data, product, or financial records.
The next step should be choosing which backup solution the eCommerce store needs and which suits the eCommerce business objectives and budget. You can use several backup methods, such as manual backups, automatic backups, and cloud backups. Another important consideration is that backups should not be one-time thing; making the backup process weekly or monthly will be beneficial. Lastly, eCommerce companies should store backups securely to guarantee that they’re protected from unauthorized access.
Going through every step of this process ensures online stores have a reliable backup solution catering to all their needs.
2. Implement a strong password policy
A strong password policy is a fundamental component that can enhance the security system and protect your customers’ data. Thus, it is crucial to encourage your eCommerce buyers to enter a strong password with a minimum length, special characters, and numbers during the registration or purchase.
Require customers to create passwords at least eight characters long and include numbers and symbols. This will make it more difficult to hack passwords and protects from attacks.
Moreover, eCommerce stores should require customers to change their passwords regularly. This will prevent old passwords from being used and reduce the risk of unauthorized access. Another beneficial tactic is employing extra security tactics, such as two-factor authentication, which takes us to the next point.
3․ Consider two-factor and multi-factor authentication
Authentication strategies should be an integral part of data security efforts as they can give that extra layer of security. Multi-factor authentication requires users to enter their password and authenticate their access using another device like their mobile.
For example, SMS can be deployed as an extra verification layer to protect your e-commerce business from fraudulent activity and make it harder for scammers to access user accounts. eCommerce companies should consider finding high-quality multi-factor authentication services to help protect buyers and their data.
Two-factor and multi-factor authentication offer an extra layer of security and provide another opportunity for your eCommerce company to connect with them. Additionally, when an eCommerce store decides to implement SMS as a verification layer, then it also makes it possible to build tailored campaigns based on the customer buying journey.
4. Educate your employees
Educating customers on how to protect their own data, such as creating strong passwords and not sharing personal information, can also help protect both their data and the eCommerce company’s data. As part of this, educate employees on the risks their actions or mistakes could pose to data security and notify them about threats.
✔ Organize training sessions
eCommerce companies should organize regular training sessions on data security measures. These sessions can cover topics such as password security, phishing scams, and properly handling sensitive data. The training can also include giving tips for identifying and reporting suspicious actions.
Furthermore, checking whether employees understand the importance of creating strong passwords is vital, and you should recommend regularly changing them.
✔ Establish clear policies and procedures
Another step is to develop clear policies and procedures for handling sensitive data and ensure that your employees understand them thoroughly. These policies should guide employees on how to store and share sensitive and crucial information.
Also, you may consider giving your employees tips about Shopify bulk product image upload, as it helps to upload product images quickly and save valuable time.
✔ Monitor access to sensitive data
It is crucial to limit access to sensitive data and give those employees who need it to perform their daily tasks. Lastly, it will be important to schedule regular team meetings and use the Office 365 group calendar in that process, and effectively discuss data protection strategies.
5. Educate customers as well
Online stores should not only dedicate effort to their employees but also should educate their customers as well. Also, these companies should consider implementing onboarding tools or affordable Walkme alternatives making the onboarding stage as effective as possible and increasing increase customer retention.
First and foremost, share your privacy policies on the eCommerce website and explain what data you collect, how you use it, and how you protect it.
The next step is to provide a secure checkout option and offer secure payment options. Moreover, it is important to suggest to customers the option to use two-factor authentication to protect their accounts and add an extra layer of security.
You should not only give password management tips to customers but also encourage them to use strong passwords and give tips on creating and managing them, such as using a password manager.
Furthermore, it’s crucial to communicate with eCommerce buyers with a secure communication platform and consider taking email security measures when customers share sensitive data via email.
6. Use encryption techniques
The last recommendation we give to eCommerce businesses is to implement encryption methods to reduce both external and internal threats and guarantee high-level security.
These techniques will help to protect sensitive data, such as passwords and credit card details, and are one of the effective ways to protect an e-commerce company’s data from securing your consumers’ information as well.
Moreover, they help to increase search engine visibility, and best practice suggests that eCommerce websites that use encryption tactics rank higher.
To Sum Up
There is no doubt that a strong data protection strategy can ensure business growth. Therefore, eCommerce companies should dedicate their time and effort to keeping both their company and customer data safe from various security threats, and PCI-compliant hosting can assist in making sure you’re meeting these standards. Following these steps, we have suggested an online store build to avoid data breaches, increasing customer retention and, as a result, a skyrocketing eCommerce company.