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

2 Updates
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...

Filed under: news

 
 
 

39 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
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing th ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Finally Nepal, India sign power trade agreement
Kathmandu, Oct 21 (IANS) Nepal and India here Tuesday formally signed a landmark power trade agreement (PTA), allowing exchange of electricity, which is expected to open up new vistas of cooperation in the hydropower sector between the two energy-starved nations.
 
 
Depressed people, too, believe in brighter future
Toronto, Oct 21 (IANS) Like most adults, even depressed people believe in a brighter future, but for them this optimistic belief may not lead to better outcomes, found a research.
 
 
Indian-origin sisters develop tool to detect lung, heart disease
Washington, Oct 21 (IANS) Two Indian-origin high school students Ilina and Medha Krishen have developed screening tools to detect lung and heart disease using electronic stethoscopes.
 
 
Gene behind sweating disorder detected
Washington, Oct 21 (IANS) Mutation of a single gene blocks sweat production leading to an increased risk of hyperthermia, also known as heatstroke, said a study.
 
 
 

Latest from the Network

1,074 new dengue cases in Chinese province
Beijing, Oct 18 (IANS) China's Guangdong province has reported 1,047 new cases of dengue fever, health authorities said Saturday. Six people have already died in Guangdong -- five in Guangzhou and one in adjacent...
Read more on Business Balla
 
Blake Lively 'always' wanted to be mum
Blake Lively has ''always'' wanted to be a mother. The 27-year-old actress is expecting her first child with husband Ryan Reynolds and she admits she's been dreaming of this moment since she was a youngster. Speaking...
Read more on Celebrity Balla
 
Kris Jenner 'torn apart' by Bruce's new relationship
Kris Jenner feels ''torn apart and angry'' that Bruce Jenner is dating her former assistant. The 58-year-old matriarch split from the 64-year-old Olympic gold medalist last October following 22-years of marriage but is...
Read more on Celebrity Balla
 
Cheryl Fernandez-Versini won't move to France
Cheryl Fernandez-Versini doesn't want to move to her husband's home country of France. The 'X Factor' judge, 31, who comes from Newcastle, is adamant she won't be relocating any time soon to suit her new spouse Jean-...
Read more on Celebrity Balla
 
Lance Bass sets wedding date
Lance Bass has set a date for his wedding. The former *NSYNC singer and his partner Michael Turchin, who have been dating for two-and-a-half years, are to tie the knot on December 20, 2014, a representative for the...
Read more on Celebrity Balla
 
Nepal avalanche toll reaches 39
Kathmandu, Oct 18 (IANS) At least 39 climbers died while hiking on a key Nepali route after it was hit by a major snowstorm and avalanches earlier this week, BBC reported Saturday citing officials. Over 350 stranded...
Read more on Politics Balla
 
Jake Gyllenhaal says society is complicit in 'nightcrawling'
Jake Gyllenhaal says almost everybody in society ought to relate to his new movie 'Nightcrawlers'. The eagerly-awaited film concerns those people who monitor police scanners and then race to crime scenes to film eye-...
Read more on Movie Balla
 
India eves look for first win in AFC U-16 qualifiers
Dhaka, Oct 18 (IANS) India will hope to register their first win of the 2015 Asian Football Confederation (AFC) Under-16 Women's Championship qualifiers when they take on hosts Bangladesh in a crucial encounter at the...
Read more on Sport Balla
 
Moyes mulling return to management
London, Oct 18 (IANS) Former Manchester United manager David Moyes said that he is ready to revive his managerial career six months after being sacked by the 'Red Devils'. "I am ready to return. I have enjoyed the...
Read more on Sport Balla
 
Ebola fears loom over Ghana hosting AFCON
Accra (Ghana), Oct 18 (IANS) The Ghana Medical Association (GMA) cautioned the government Saturday against hosting the 2015 African Cup of Nations (AFCON), despite a request by the Confederation of African Football (...
Read more on Sport Balla