Companies that treat privacy as stewardship gain a competitive edge
Companies that treat privacy as stewardship gain a competitive edge
Publish Date: 2026-02-13 18:25:00
Source Domain: nebraska.tv
LINCOLN, Neb — Companies that treat customer privacy as a business strategy instead of a regulatory hurdle can gain a measurable competitive advantage, according to new research led by University of Nebraska–Lincoln marketing professor Natalie Chisam.
The research, published in the Journal of Marketing, found that companies that handle customer data with transparency, care and clear communication can boost customer patronage and improve financial returns through what researchers call “privacy stewardship.” The work draws on large-scale studies and experiments. Co-authors include Jordan W. Moffett of the University of Kentucky, Kelly D. Martin of Colorado State University and Robert W. Palmatier of the University of Washington. The research also will be featured in the May issue of Harvard Business Review.
“Privacy doesn’t have to be a constraint; it can be a catalyst,” Chisam said. “When companies treat privacy as more than a compliance checkbox, framing it as a meaningful commitment to data protection and customer care, they can unlock measurable business results.”
The findings suggest that prioritizing privacy can benefit both customers and a company’s financial performance, particularly by building trust.
“Trust is a scarce resource,” Chisam said. “Brands that signal they care about privacy can differentiate themselves in a crowded marketplace.”
The research found that customers reward brands that manage data privacy responsibly, but it also noted that many companies struggle to implement privacy stewardship in ways that connect with customers.
“Organizations either under-invest or pursue initiatives that fail to resonate with customers,” Chisam said. “The key is to match privacy efforts to what customers expect and the level of risk they perceive.”
Chisam said privacy stewardship may be less effective for companies that rely heavily on monetizing personal data, such as social media platforms, because customers may question…
