As Tariffs Drive Up Consumer Prices, Brand Loyalty Matters More Than Ever

Higher tariffs are adding to the growing economic pressures on consumer-facing businesses. For marketers, managing rising costs and shifting consumer behaviours is becoming unavoidable. As companies pass these costs on to customers, the risk of weakening brand loyalty increases.

But this challenge also presents an opportunity. Now is the time to double down on best practices for loyalty strategies. With leadership support, marketers can drive initiatives that not only ease the impact of price hikes but also strengthen long-term customer relationships.

Category-Specific Loyalty Dynamics

It’s important to recognise that loyalty isn’t one-size-fits-all. In essential categories like groceries and household goods, consumers may be more likely to stick within brands they know, especially when budgets are tight. In more discretionary categories—such as travel, fashion, or dining—shoppers are often willing to experiment or switch for better value. Brands need to tailor their loyalty strategies accordingly, focusing on reassurance and reliability in core categories, while offering discovery and added value in others.

Our latest research into loyalty highlights this with 89% of US consumers motivated to participate in a loyalty program because it offers the best product for them. But not all loyalty programs are created equal. Nearly two-thirds say they would leave a loyalty program if the rewards weren’t worth it or they were hard to access. This means brands must understand what truly matters to their customers in each category and design loyalty experiences that reflect those priorities.

Building Loyalty Through Personalisation

Every customer wants something different from a brand, and creativity alone won’t cut it. This means one thing: personalisation. Brands need deep customer insights to truly understand their audience and deliver authentic, engaging experiences that align both the brand and consumers’ values.

Surface-level demographics aren’t enough. Knowing someone’s birthday will only tell you so much. Brands need to understand the lifestyle factors or interests that are motivating their customers to purchase a product or service. This is where first-party data shines. It’s a brand’s secret weapon for creating those “they get me” moments at scale.

To build out first-party data, brands should focus on collecting insights from various touchpoints—such as online interactions, in-store purchases, and mobile app activity—into one unified view. Persistent identifiers are crucial here, helping brands connect the dots across all channels and interactions. Without a clear, cohesive view of customer behaviour, even the most sophisticated campaigns risk missing the mark.

Understandably, users are increasingly aware of the value of their data, so consent must be at the forefront of this strategy. Brands should always deliver on the value exchange. Consumers want to feel brands know them. In return, they are far more inclined to seek out and purchase from that brand and recommend it to others.

Again, our research backs this up, with 74% of respondents admitting they are more loyal to a brand when they have a positive experience with its loyalty program.

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Omnichannel Integration: Consistency Across Every Touchpoint

Today’s consumers move seamlessly between digital, social, mobile, and offline channels. Loyalty is built not just through isolated interactions, but through a consistent, joined-up experience wherever the customer chooses to engage. Omnichannel integration ensures that messaging, offers, and service are aligned—whether someone is shopping online, browsing in-store, or engaging via an app.

The grocery market demonstrates this well. Supermarkets like Morrisons use schemes such as ‘My Points Boosters’ to let customers select their favourite brands from a personalised list, while Waitrose’s tailored vouchers reflect individual shopping habits. These experiences are consistent whether customers shop in person or online, reinforcing loyalty at every touchpoint.

Looking beyond grocery and into travel, companies like easyJet are cleverly using customer data to create meaningful connections and drive loyalty. To celebrate its 40th anniversary, easyJet gathered the data it had on each customer to create individual stories about when they flew on the airline for the first time and where their next destination could be.

The common denominator in these examples is personalisation that goes beyond simple transactions. These brands have created experiences that really resonate with customers on a deeper level, forming the foundations for genuine loyalty.

Measurement and ROI: Proving the Value of Loyalty

It’s not enough to launch a loyalty programme and hope for the best. Brands need to measure what matters—tracking not just sign-ups, but engagement, repeat purchase rates, and customer lifetime value. Advanced analytics can help brands understand which elements of their loyalty strategy are driving results and where there’s room for improvement.

With 80% of consumers liking personalised communications based on their loyalty program interactions, brands can’t assume loyalty. Rather, they need to demonstrate they understand their customers by continually offering benefits based on their behaviours and preferences. Only then will consumers find these programs more valuable and feel appreciated.

Regularly reviewing performance data allows brands to adapt quickly, optimising campaigns, boosting revenue, and cutting down on waste. This is especially important in categories where switching is easy and price sensitivity is high.

The Journey to Long-Lasting Loyalty

Connect with customers on an emotional level and most will remain loyal. But this isn’t a one-and-done thing. Brands need to deliver positive experiences on a regular basis, across every channel, and in ways that reflect the unique dynamics of each category.

Ultimately, winning the hearts and minds of customers in the long term comes down to one simple truth: understanding your customers. First-party data, persistent identity, and omnichannel integration give brands the power to move beyond bland messages and create genuine connections. It’s about turning assumptions into real insights that actually matter to people—making loyalty a natural outcome, even in challenging times.

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Picture of Dave Allen

Dave Allen

Dave Allen is VP of Business Development at Epsilon