Price sensitivity is rising, loyalty is wavering and shoppers are pausing before they click “buy.” If you’re leading marketing in retail, 2025 brings yet another layer of complexity to an already shifting landscape. With tariffs adding friction to global supply chains and inflating prices across both essential and discretionary categories, consumer expectations are evolving fast, and unpredictably.
However, within every disruption lies an opportunity for forward-thinking brands willing to move fast and think differently. The most agile marketing leaders are already turning today’s tariff turbulence into tomorrow’s competitive edge. By grounding strategy in data and prioritizing consumer trust, these brands aren’t just defending margins, they’re strengthening loyalty, enhancing relevance, and positioning for long-term growth.
The Strategic Pivot: What Retail CMOs Should Do Now
Tariffs have moved beyond financial headlines — they’re front and center in consumers’ minds. Only 4% of U.S. shoppers remain unaware of the current economic pressures tied to domestic and global trade policy. As a result, consumers are actively shifting their behavior: 76% say they’re willing to switch brands for better value, and even modest discounts of just 11–20% are often enough to trigger a change. While brand awareness remains high, loyalty is increasingly fluid — especially among Millennials and Gen Z, who are leading a shift toward price-sensitive, value-driven shopping.
For marketers, this signals two critical risks. First, loyalty is fragile: consumers are not only comparison shopping but also delaying purchases, waiting for the right offer. Second, relevance is non-negotiable: if a brand can’t clearly articulate its value proposition at a glance, it risks fading from consideration entirely.
Download – U.S. Tariff Effect: Exclusive Marketer and Consumer Insights
1. Lean Into Owned Channels for Agility and Control
With nearly half of marketing leaders reallocating budgets toward owned channels, email, text, and onsite experiences, it’s clear that controlled environments are becoming essential for navigating rising ad costs and shrinking margins. Unlike paid media, these channels offer brands greater agility, allowing for rapid adaptation to market conditions and more direct, meaningful engagement with consumers.
Owned channels enable personalized, value-driven messaging at scale, fast-paced testing of promotions, and real-time response to consumer intent. One of the most effective strategies is to build automated behavioral trigger campaigns tied to key actions like browsing, cart abandonment, or price-drop alerts. These tactics ensure you’re reaching consumers at their highest point of interest, maximizing impact, driving conversions, and reinforcing your brand’s value when it matters most.
2. Accelerate First-Party Data Growth
With almost half (48%) of marketers identifying first-party data as their top growth driver for 2025, collecting email addresses and mobile numbers has shifted from a “nice to have” to a business-critical strategy. In an era defined by privacy regulation and cookie deprecation, identity is the key that unlocks deeper personalization, sharper segmentation, and more effective retargeting — especially across prolonged buying journeys as consumers become more deliberate with their purchases.
To capture this data at scale, brands must meet consumers with compelling, value-driven offers. Deploy intelligent overlays and exit-intent popups that present gated discounts or early access in exchange for an email or phone number. These tactics not only boost opt-in rates but also provide the fuel for higher-converting, intent-based outreach. And with mobile dominating shopping behavior, optimizing these experiences for smaller screens is non-negotiable.
3. Rethink Promotions: It’s Not Just About Discounts
Sure, price matters, but today’s most successful brands understand that value extends beyond a simple coupon code. They’re reframing offers around perceived benefits like free shipping, product bundles, loyalty perks, and flexible return policies. In fact, over half (52%) of marketers now prioritize value-based promotions over deep discounts. To capitalize on this shift, test messaging that highlights the “why” behind the offer, phrases like “Smart savings,” “Summer essentials, bundled for less,” or “Members-only pricing, because loyalty should pay” can drive stronger engagement by reinforcing relevance and reward.
4. Message With Transparency and Purpose
Consumers are becoming more strategic, and they expect the same from the brands they support. Transparency around pricing changes, and the reasons behind them, can actually strengthen trust. Beyond discounts, consumers want clarity. 8% say theyʼd be encouraged by a brand that clearly explains why prices are going up, an often-overlooked tactic that builds trust in moments of friction.
Brands can use owned content like email campaigns or blog posts to share that story. Whether you’re investing in domestic manufacturing, improving product quality, or absorbing supply chain costs, say it plainly. It humanizes your brand and reinforces long-term credibility.
5. Prioritize Performance Technology That Delivers ROI
In a time of tightened budgets, the race is on to do more with less, and smart tech is leading the way. Over half of marketing leaders are doubling down on MarTech solutions that deliver clear revenue lift and measurable ROI.
Tools like identity resolution, personalization engines, and real-time behavioral triggers have shifted from “nice-to-haves” to mission-critical infrastructure. To stay competitive, work with partners who can identify anonymous visitors and activate personalized messaging across email, text, and onsite channels — helping you re-engage hesitant shoppers without over-relying on costly paid media.
The Bottom Line: Value Is the New Loyalty
Across all demographics, price sensitivity has redefined consumer priorities. The good news? Brands don’t need to outspend to outperform. By leading with empathy, precision, and adaptability, retail marketers can turn today’s economic volatility into tomorrow’s competitive advantage.
Wunderkind’s two-part May 2025 research series delivers timely, actionable insights from both sides of the market — 300+ consumers and 150+ marketing leaders — revealing how rising costs are altering purchase behavior and performance strategy in real-time. These reports are packed with detailed data, tactical frameworks, and real-world examples designed to equip marketing leaders with what they need most right now: a path forward.
Download – U.S. Tariff Effect: Exclusive Marketer and Consumer Insights