Everyone wonders what will happen to a company after a serious breach. Will customers notice? Will they leave? A good case study might be TalkTalk. Customers are leaving TalkTalk in large numbers, with the embattled telco’s market share dropping sharply since a high profile data hack last October exposed personal data.
TalkTalk has lost 4.4 percentage points of its home telecoms services market share, with its slice of the pie down to a mere nine per cent, according to market researchers Kantar Worldpanel.
And so far only 250,000 of the telco’s customers had their personal and financial data exposed in the attack. Nothing compared to the Home Depot or Target breaches.
The financial damage of the attack is already expected to have cost TalkTalk between £30m and £35m. It looks lie the firm’s reputation has suffered a similarly hard blow with consumers losing faith in TalkTalk as a reliable brand.
Shares in the telco fell 2.88 per cent yesterday, closing at 192.10p.