The value of safeguarding consumer trust in the retail sector

Maintaining consumer trust is paramount in the retail sector. Trust forms the bedrock of any lasting relationship, a principle particularly pertinent to the connection between businesses and their customers. Our decisions to favor one brand over another often hinge on our belief in its consistent ability to provide quality products or services.

When it’s gone, it’s gone!

Trust forms the bedrock of any lasting relationship, and this holds true for the connection between businesses and consumers. Our decision to choose one brand over another often hinges on our ability to rely on it for consistently good products or services.

“Trust is the glue of life. It’s the most essential ingredient in effective communication. It’s the foundational principle that holds all relationships.” Stephen Covey, Author of The 7 Habits of Highly Effective People

Trust is paramount in consumer behavior, significantly influencing buying decisions and fostering loyalty. Brand trust is a key purchasing consideration and consumers will remaining loyal to a trusted brand.

75% of consumers remaining loyal to a trusted brand even when trendier alternatives exist.

Brand protection: the responsibility lies with you!

While product quality, service consistency, and societal commitments have traditionally dominated conversations around consumer trust, the increasing prevalence of data breaches, ransomware, and phishing scams has brought consumer privacy and data security to the forefront. Consequently, consumer trust and brand reputation are now heavily dependent on a business's ability to protect this information.

88% of consumers state that their willingness to share personal information is contingent on their trust in a company.

81% of consumers will cease online engagement with a brand after widespread news of a data breach.

Consumers can be unforgiving

Sixty-four percent of Americans hold companies accountable for data breaches, not hackers, due to limited visibility. If their data is compromised, they may not know if an outsourced HR firm is at fault, leading them to blame your company. Consumers believe you are ultimately responsible and expect businesses to enforce adequate security measures, allowing little room for error if expectations are unmet.

Email’s role in safeguarding trust

The relationship between consumers and businesses has changed significantly, with the pandemic accelerating online purchasing. E-commerce now accounts for 19.5% of global retail sales, totaling $4.8 trillion in 2021, and has increased by 114% since 2018. As in-person transactions decline, businesses must innovate to build consumer trust, emphasizing effective use of digital channels in this online-first landscape.

Email and ecommerce go hand in hand

Email is fundamental to the online consumer journey, facilitating logistical, transactional, and promotional communications. As online purchasing increases, so does the volume of emails sent. In 2021, businesses globally sent over 321 billion emails daily for internal and external communications, a figure projected to reach 376 billion by 2025. However, the widespread use of email also makes it a prime target for cybercriminals seeking to steal money or data.

321 Billion emails were sent everyday in 2021, 376 Billion emails sent daily by 2025!

DMARC: a fundamental layer for retail email security

For retailers, email is a vital lifeline to consumers. Therefore, it's essential to have robust protection measures in place. A fully-configured DMARC is crucial for all businesses using email, especially those in retail that handle large amounts of sensitive customer and payment data.

What is DMARC?

DMARC stands for Domain-based Message Authentication, Reporting, and Conformance. It’s an email security and authentication protocol that protects domains against exact impersonation. Essentially, it ringfences your domain (http://www.example.com ) and blocks hackers from being able to use it to impersonate your business and send phishing emails to your customers, employees, and supply chain

How does DMARC work?

When correctly configured at a policy of p=reject, DMARC works using existing security protocols SPF and DKIM to tell any receiving servers that an email coming from your domain is legitimate. It also instructs receiving servers to reject any emails that don’t come from your authorized sending sources. This stops hackers using your domain for phishing and has also been shown to improve email deliverability and placement

DMARC protects everyone, and is a foundational tool for safeguarding trust:

• Your employees won’t receive emails from your company’s domain, pretending to be the CEO, accounts department or other senior members. This means money, data, and employee wellbeing are protected

• Your customers won’t receive emails pretending to be from your business with bogus links or attachments, so your customers stay safe, your reputation stays intact, and trust in your brand is secure

• Your suppliers can be confident that emails are coming from you, and they’re protected from phishing scams using your domain

The results are in: how DMARC in the retail sector currently measures up

Online, retailers are in a fierce competition to offer the best customer experience. They employ various attention-grabbing strategies, such as fast user experiences, order tracking, and personalization, to differentiate themselves. However, a crucial question remains: are these businesses implementing fundamental security measures for email, the channel that drives a significant portion of their business and consumer interactions?

88% of top retailers not protected

The retail sector faces significant risks from data breaches, credential theft, and financial losses. A mere 12% of leading global retailers are fully safeguarded against domain impersonation. This leaves a concerning 88% highly susceptible to impersonation attacks and their detrimental consequences.

DMARC’s role in safeguarding trust in retail

DMARC protects consumer data 

Business Email Compromise (BEC) describes phishing attacks that impersonate an organization's domain or employees to target the company. BEC poses a growing risk to brand reputation and consumer trust. When employees are tricked into revealing sensitive information, customer data is leaked, and trust in the brand erodes. By implementing DMARC, retailers can prevent customer phishing and block hackers from masquerading as business members to trick employees into divulging sensitive information, money, and credentials.

Brand impersonation: the bigger the better 

Hackers deliberately target businesses with strong, reputable brands because such organizations are likely to have a larger network of contacts to phish and have already established trust with their customers. Without adequate protective measures, cybercriminals will exploit a retailer's hard-earned brand trust for their own benefit, regardless of the damage to the retailer's reputation.

Large global corporations invest heavily in building trust within their networks, a valuable asset hard to regain once lost. Retail businesses that don't configure DMARC with p=reject are vulnerable to criminals impersonating their domains, leading to scam emails and potential reputation damage. Implementing DMARC improves email ecosystem security.

The email ecosystem is a global network, and it’s important we all play our part to keep it secure.

The more businesses that adopt DMARC as the standard way to authenticate emails and block hackers from impersonating their domains and brands, the safer the global email channel will become as a whole.

Is a lack of trust impacting your email ROI?

Many retailers have built strong brands, but with global email open rates at 18% and click-throughs at 2.6%, engaging target audiences can be challenging. A key factor may be trust issues, making it hard for brands to stand out. Furthermore, increasing cybercrime and phishing attacks may lead consumers to doubt email authenticity, causing hesitation in clicking.

How can retailers reassure recipients?

A recent survey revealed that 75% of individuals consider a domain-based email address matching their website to be crucial for establishing trust. However, without full DMARC configuration, this seemingly legitimate email could be a hacker's attempt to impersonate the brand. Retailers can further enhance email legitimacy by implementing BIMI, which displays their registered logo on emails. This protocol offers a concrete method to assure recipients of an email's authenticity, helping retailers distinguish themselves in crowded inboxes.

Logo visibility for consumer trust 

What is BIMI?

BIMI (Brand Indicators for Message Identification) is an emerging email standard. It enables organizations with a secure DMARC policy to display their trademarked logo and a verified sender checkmark alongside their email messages. This feature is visible in various email inbox platforms, including Gmail and Outlook.

Why is BIMI important? 

Achieving a secure DMARC policy prevents email domain impersonation and enhances deliverability. However, successful delivery is just one challenge. In today's competitive digital landscape, organizations must stand out in crowded inboxes.

BIMI showcases your trademarked logo and a blue verified sender checkmark in customer inboxes, confirming email legitimacy and protecting against impersonation and phishing. This increases brand impressions, email engagement, open rates, and customer confidence, leading to better marketing returns.

Does showing a logo in the inbox increase confidence in that email?

Inclusion of a trademarked logo in an email provide an even greater boost to consumer confidence. DMARC and BIMI could be pivotal in enhancing email success rates by fostering consumer trust and maximizing campaign ROI for businesses.

75% of individuals trust an email based on its domain matching the company's website

Start safeguarding your brand reputation and consumer trust 

DMARC and BIMI are crucial for retailers to safeguard brand trust. Implementing these isn't as challenging as it seems. Our partnership with Entrust provides the first and only comprehensive DMARC and BIMI solution, helping businesses enhance email security and deliver a more consistent email experience for recipients.

How 101domain can help

Fortify your outbound email security, cultivate consumer trust, and amplify your brand visibility by integrating OnDMARC and BIMI. OnDMARC proactively defends against phishing attacks originating from your domain, while BIMI prominently displays your verified brand logo within your email communications.

This effective and economical solution has empowered countless global businesses to successfully deploy DMARC and BIMI, enabling them to reap the rewards of enhanced email security and brand recognition.

Connect with us today to embark on your path to more secure and impactful email communications. Begin your DMARC journey and learn more about DMARC and our Managed DMARC Compliance Services or contact us today 1.888.982.7940.