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Zappos Gets Zapped – Online Shoe Giant’s Security Breached
Customer service king Zappos demonstrates how retailers need to communicate with customers during an online security breach in order to retain loyalty and trust.
Even the most savvy online retailer is not safe from the threat of hackers and security scares, as witnessed by the security breach of US shoe pureplayer Zappos.
“We’ve spent over 12 years building our reputation, brand, and trust with our customers. It’s painful to see us take so many steps back due to a single incident. I suppose the one saving grace is that the database that stores our customers’ critical credit card and other payment data was not affected or accessed,” said Zappos CEO, Tony Hsieh, in a letter that was sent to its 24 million customers.
Ever the consummate customer service leader, Zappos sets the perfect example of keeping its customers informed by clearly communicating the issue, advising how it is dealing with the breach,and offering its customers an apology, plus giving direct contact details.
As highlighted by our recent article ‘New Year’s Resolution #1: Revisit your Online Security Plan‘, with the proliferation of big and small alike, e-commerce retailers cannot afford to be complacent with the security of customer information and details. The Zappos incident draws attention to another equally important consideration for retailers during these situations, in that how you react and keep your customers informed thoughout the breach, will determine the way in which they perceive and trust your brand after it is resolved.