May 27, 2025

How to Build Customer Loyalty During Economic Uncertainty

Strategy
Trends
How to Build Customer Loyalty During Economic Uncertainty

The U.S. economy in 2025 continues to send mixed signals. Inflation remains a concern, interest rates are still high, consumer sentiment is shaky, recessionary warning signs are emerging, and new tariffs are adding further pressure. As a result, consumer spending patterns are shifting significantly. Shoppers are becoming more cautious and selective, prioritizing necessities and demanding greater value from every purchase.

In this environment, it’s easy for brands to lean on short-term tactics: increasing promotions, decreasing prices, and chasing one-off conversions. While these approaches may drive short-term results, they aren’t built to last. Brands that prioritize loyalty today will emerge stronger when economic conditions eventually stabilize. 

Why Loyalty Matters More Than Ever

In uncertain times, loyalty becomes one of a brand’s most valuable assets. Loyal customers are more likely to return, less influenced by competitor discounts, and more trusting of what your brand delivers — which makes them easier to retain and more profitable over time. With rising media costs and unpredictable acquisition performance, a strong retention strategy brings much-needed consistency. Even small gains in loyalty can add up, boosting lifetime value and helping drive steady, sustainable growth.

Building Loyalty Through Strategic Marketing

At the center of customer loyalty is retention marketing. In today’s environment, brands must shift from one-off campaigns to relationship-focused strategies that prioritize customer needs and experiences throughout their journey.

Email Marketing

Email marketing remains one of the most effective and affordable retention tools — but in crowded inboxes, it only works if it’s done well. To stand out, focus on relevance, value, and trust:

  • Segment by price behavior: Identify customers who only purchase during sales, regularly use discount codes, or haven’t bought in a while. Send targeted win-back offers, low-price bundles, or sale alerts based on past purchase habits.
  • Add value beyond offers: Share tips for getting more from purchases, like how-to guides, care instructions, or value breakdowns (e.g., “Only $0.50 per use”). Show how your brand helps them save smarter, not just spend less.
  • Send timely replenishment nudges: Trigger reorder emails based on product lifecycle, but add incentives like discounted savings or free shipping. Include a one-click reorder button to make it fast and frictionless.
  • Promote subscribe-and-save options: Position subscriptions as a smart savings plan. Reduce commitment fears with flexible terms, clear expectations, and reminders before each shipment.

SMS Marketing

SMS is a powerful channel for time-sensitive communication — but to be effective, messages must be timely, respectful, and clearly deliver value:

  • Get explicit permission before messaging: Always obtain consent before sending SMS messages and provide easy opt-out options. Respecting user preferences is crucial for building trust.
  • Use SMS for time-sensitive support: Send shipping updates, delivery confirmations, or refill reminders that save customers time or money. A quick “Running low? Restock now and save 10%” text keeps the experience helpful, not salesy.
  • Send high-impact, low-frequency messages: Use SMS sparingly for meaningful alerts — like big savings events, exclusive discounts, or price drops on items they’ve browsed or purchased before.
  • Trigger restock alerts with a value hook: Let shoppers know when affordable best-sellers are back — and lead with price. Messages like “Your $15 fave is back in stock (and still on sale)” create urgency without over-selling.

Loyalty Programs

Loyalty Programs are an effective way to retain customers, but only if they provide clear, valuable benefits that resonate with current consumer needs:

  • Align loyalty programs with value-focused priorities: Reframe your program to emphasize real, immediate benefits — like discounts, cashback, or savings milestones — that resonate with cost-conscious shoppers during economic uncertainty.
  • Choose the right structure for your audience: Evaluate point systems vs. tiered rewards. Point systems offer flexibility and faster gratification, while tiered programs can incentivize longer-term engagement.
  • Reward consistency, not just big spending: Incentivize regular reorders with tier upgrades based on frequency, not dollar amount. This keeps consumers engaged without needing them to overspend.
  • Show appreciation beyond discounts: Surprise members with unexpected perks — like a free item after a certain number of purchases or birthday credits. Personalized messages and small gestures go a long way when budgets are tight.

A Smarter Approach to Customer Loyalty

Building loyalty isn’t about being the loudest brand — it’s about showing up when it matters.  With consumers more selective than ever, trust is harder to earn. Instead of overwhelming people with constant messaging, focus on fewer, more relevant touchpoints that reflect what your customers actually need. Every message should lead with value — solving a problem, answering a question, or making their experience better. The brands that do this consistently are the ones people stick with.

The sooner you invest in smart, customer-first retention, the better positioned your brand will be when the market stabilizes. WITHIN helps brands build long-term loyalty through email, SMS, and loyalty programs. Reach out to learn how we can help.

 

Authors
Carla Donahoue, Lifecycle Director
Adriana Pineda Arango, Senior Lifecycle Account Manager