Concept image depicting locks in the foreground in front of a person typing on a laptop, representing the concept of cybersecurity.

Customer experience is essential for business success. Good interactions with customers not only build loyalty and garner positive online reviews but also lead to measurable improvements in your company. According to research by McKinsey and Company, improved customer experience can lead to a 2% to 7% increase in sales revenue and a 1% to 2% increase in profits.Overall service, pricing, personalization, website, and reputation can all impact customer experience. However, you should also consider variables that do not directly involve your products, services, or employees. For instance, physical and digital security both have a significant role in the overall customer experience.Shoppers or clients need to feel safe when visiting a brick-and-mortar location, and they need to be confident that their personal information is secure when they use it to make purchases or enter data on an app or website.Here is a look at the current issues related to physical and digital security in business and how you can approach challenges and threats to improve overall customer experience.

The Current State of Organizational Security

Cybersecurity threat: anonymous hacker behind digital code. Cyberattacks are becoming more common. 2023 was a record-breaking year, with more than 3,000 data compromises that exposed the personal information of 353 million people. The incidents seem to be increasing in retail, healthcare, and financial services, though the digitization of business processes makes companies in all industries vulnerable to hacking.While online incidents are more common in today's digital world, the lack of trust and negative experiences can arise from physical security concerns. Obviously, people need to feel safe when visiting a business, such as a brick-and-mortar retailer. Physical security is becoming more important, with a 2022 survey by the National Retail Federation finding that 77.6% of retailers reported more customer-on-employee violence, and 52.6% saw more gun violence in the past five years.The NRF survey also found significant increases in theft and organized retail crimes, which although not necessarily violent, can impact customer experience and lead to more invasive security procedures that patrons may find unpleasant.Physical security is fundamental for all businesses. Customers will not come to make purchases if they do not feel safe. Meanwhile, the digitization of business makes digital security equally important for making customers comfortable.

Digital Security Threats

Woman analyzing data in a modern cafe. Cyberattacks can threaten customer data in different ways. Hackers can break into your business's databases, accessing sensitive information, which they can either use or sell to third parties. In some cases, hackers can use your store or office Wi-Fi to directly attack customers' devices while they are in your store.Such hacks may expose customers' personally identifiable information (PII) and payment details, which could lead to identity theft or fraudulent charges.For your business, such problems will cause a loss of trust and negatively impact revenue. A 2023 cybersecurity survey found that 66% of customers wouldn't trust a company that experienced a data breach and 75% would consider stopping making purchases from a company that got hacked.There are also liability issues to consider. In industries like finance and healthcare, companies are legally required to protect customer data. Failure to do so can lead to fines and civil lawsuits.Robust cybersecurity can help ensure such breaches are less likely. Here are some ways to deploy digital security solutions.

Addressing Digital Security Challenges

While there will always be cybersecurity challenges, you can take certain steps to limit the likelihood of a breach or lower the impact a hacker can have if they break through your defenses.Here are ways to address digital security threats:

Strong password protocols can help you avoid breaches. The Cybersecurity and Infrastructure Security Agency (CISA) suggests mandating the use of letters, numbers, symbols, or nonsensical but easy-to-remember phrases to make robust passwords.
Multi-factor authentication (MFA) can add protections for both staff and customers. This would require an additional code via email, text, or authenticator app. Even if they steal a password, hackers would not be able to use it to break into an account protected by MFA.
Cloud-based servers can protect against breaches. These are often operated by third-party companies that consistently monitor servers and apply updates as soon as they are available, fixing vulnerabilities before hackers have a chance to exploit them.
Encryption encodes data before it gets transmitted. It can't be decoded with a decryption key, so anyone who stole it during transmission would not understand the information. Encryption can protect PII and payment information while it's sent for processing.

You might also consider using smart cameras with AI integrations to help spot suspicious activity, such as someone trying to hack customers' devices via in-house Wi-Fi. Related AI-powered tools like license-plate recognition (LPR) can add to the overall effectiveness of your video security system.

Physical Security Threats

Physical threats can make customers feel unsafe when they enter your facilities. Like data breaches or other cyberattacks, physical attacks can give your business a bad reputation. Customers may choose to avoid shopping or visiting because they are concerned about their safety and may feel like you are unable to provide a safe environment.Physical security threats can also impact customers in other ways. For example, an increase in thefts may make it necessary for you to increase loss prevention activities. Customers may feel uncomfortable if staff are watching them or checking bags and receipts in an effort to stop shoplifting.Technology offers tools that can detect threats and mitigate theft risks without causing customers to feel uncomfortable.

Addressing Physical Security Issues

Having a relationship with law enforcement or hiring in-house security may help depending on your situation. However, you can also rely on technology to address physical threats.Here are your options if you want to take this step:

Surveillance cameras provide a less invasive way to monitor customers and engage in loss prevention. You can integrate AI software to find suspicious activities, such as someone loitering in the same area for too long.
Access controls can help limit access to secure areas, such as cashiers counters and storage rooms. These systems can also help lock down parts of the store in an emergency.
Employee training can help workers know how to properly address suspicious activity without making other customers feel uncomfortable.
Signage notifying customers of surveillance equipment can act as a deterrent for thieves and a reassurance for regular customers who value a well-secured environment.

Keep in mind that quality matters with security cameras and associated threat detection software. You will want to find a reputable supplier who can provide high-quality cameras and a secure digital infrastructure for surveillance data and software.If you can successfully manage digital and physical security for your business, you can ensure a positive customer experience and enjoy the revenue and reputation benefits that come along with it.