Monday, December 30, 2013

Target's brand takes a big hit after security breach...

Famed investor Warren Buffet once said "It takes 20 years to build a reputation, and five minutes to ruin it. If you think about that, you'll do things differently." With Target, the retailer is finding that its response to the massive security breach a few weeks ago is falling flat with consumers.

CBS News reports that Target's brand has plunged in perception, according to YouGov's BrandIndex, which taps into an online panel of 2.5 million people to measure how consumers rate corporate reputations. In the days following the company's disclosure of the hack, Target's brand plunged by 35 points on BrandIndex's scale, which ranges from a high of 100 to a low of -100. That means that Target's brand score dropped to -9 on Dec. 20, from 26 points the week before the security breach was announced.

If that's not bad enough, Target has gone further into the red, despite a discount offer last weekend and efforts by the retailer to staff up call centers and to reach out to customers. The company's BrandIndex score stood at -19 on Dec. 23. Despite the 10 percent discount and the offer of free credit monitoring, "the retailer has reached its lowest consumer perception point since at least June 2007," said BrandIndex managing director Ted Marzilli. "This also marks the first time since that same time that Target has had more negative perception than positive perception."


J.CrewJD said...

The data breach hasn't changed my actual shopping habits (which is different than perception, I know)... I am still shopping at Target just as much. It isn't good, obviously, but it has happened to many other retailers and they are doing the right thing by offering credit monitoring, etc., to affected consumers. Maybe I just love Target way too much to let something like this tarnish them in my eyes :) Hehe.

Tina said...

I'm still shopping just as much at Target as well. This isn't the first store that this has happened to. Big name grocery stores like Safeway and Raleys have had a few breaches each.