360° Coverage : Cyber Stick Ups At Target & Neiman Marcus (& Others)...

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Cyber Stick Ups At Target & Neiman Marcus (& Others) Discounts Brand Engagement. Up To 85% Off.

Cyber Stick Ups At Target & Neiman Marcus (& Others) Discounts Brand Engagement. Up To 85% Off.

Jan 15 2014, 11:29am CST | by

We figure that one in three of you are pretty concerned about this because, as it turns out, the cyber attack on personal and credit/debit card information previously reported by Target to have...

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28 weeks ago

Cyber Stick Ups At Target & Neiman Marcus (& Others) Discounts Brand Engagement. Up To 85% Off.

Jan 15 2014, 11:29am CST | by

We figure that one in three of you are pretty concerned about this because, as it turns out, the cyber attack on personal and credit/debit card information previously reported by Target to have included 40 million consumers, turns out to be closer to 110 million. So about one-third of the U.S. population.

Neiman Marcus, working with the U.S. Secret Service and a forensics team, is investigating a similar, mid-December breach of yet-undetermined size, but the term “millions” is being bandied about there too. Neiman Marcus tweeted last Friday that they “are taking steps, where possible, to notify customers who cards we know were use fraudulently after purchasing in our stores.”

Target ran full-page newspaper ads this week apologizing for not protecting the consumer information they gather when you shop with them, indicating what ‘next steps’ they were taking in order to “earn back your trust and confidence and ensure that (they) deliver the Target experience you know and love,” which we’re pretty sure didn’t include turning all your personal and financial information over to cyber criminals.

OK, so a nice sentiment and an interesting turn of phrase. Apologies and contrition are always the first steps in trying to turn around a brand debacle of any magnitude, let alone one that touches a third of the population. But to avoid a real disaster you need to understand the degree to which and in what specific ways values – in this case – those of trust and security – affect brand engagement in the category in which your brand competes.

Looking at the Discount Retail category, “Trust and Security” (defined precisely as related to this specific set of circumstances) is the 3rd most-important engagement driver in the category and makes a 28% contribution to consumer engagement and loyalty. That’s based off what consumers expect from the category Ideal. (BTW, it makes an even bigger contribution for Online Retailers).

Before the breach, the Target brand met consumer expectations for those values about as well as Walmart and Kmart. None of those three brands actually met expectations consumers held for those values for the Ideal. Consumers expect a lot these days and almost always more than brands deliver, but in this case all three retail brands fell within perfectly acceptable ranges, which is important even if we’re not talking about personal and financial information. Brands that better meet expectations for specific values or on an overall, category basis always do better than brands that don’t.

Anyway, as you might have guessed, Target isn’t meeting trust and security expectations in that acceptable range anymore, having lost nearly 85% of their brand equity on those values. In fact, according to assessments from our 2014 Customer Loyalty Engagement Index, Target’s current brand engagement level – the degree to which the brand is seen by customers to be able to meet their expectations for those values – is currently assessed at about 6%. So not doing too well and, based on metrics that correlate very, very highly with consumer behavior, not likely to in the near-term.

Target has already seen effects to consumer behavior or, more precisely, the lack thereof, and has already reported sales as being “meaningfully weaker” after the cyber-hack was disclosed. They expect same-store sales to fall in the quarter through January. Based on these engagement measures, so do we.

This has not, of course, been the first time retailers have been hit in this way, but Target may turn out to be the biggest. In times past retailers had days to reach out to customers quietly to try and deal with breaches and mend brand fences. But with the kind of mobile and social networks in place now, news of such attacks go viral in a matter of hours.

W. Edwards Demming, American statistician and professor, who made significant contributions to Japan’s reputation for innovative, high-quality products by creating design and quality standards that exceeded customer expectations said, “In God we trust; all others bring data.”

But under the circumstances, perhaps satirist Jean Shepard’s version is a better catchphrase for Target: “In God we trust; all others pay cash!”

Connect with Robert on LinkedIn.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was b ...
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Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat today ...
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Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Da ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern s ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

8 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Da ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damans ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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