Consumers Are Bracing For An Economic Storm. Are Brands Listening?

Forbes

02-07-2025

Rebecca Brooks is Founder and CEO of market research consultancy Alter Agents; she believes that powerful insights can change businesses.
Over the past several months, economic anxiety has gone from background noise to the main event. Whether you're catching up with friends, chatting on the sidelines of a kids' game or tuning in to the news, conversations about inflation, tariffs and looming financial strain are everywhere. But for all the punditry and forecasting, there's a key voice that's often missing from the discussion: the everyday shopper.
At Alter Agents, we've spent more than a decade digging into how and why people make purchasing decisions. Our latest research, conducted in May 2025, highlights a key finding that may not be welcome news for many brands: Shoppers aren't just worried, but also already taking action.
Consumers Are Already Making Tough Choices
It's not just about skipping the extra latte in the morning. A full 24% of Americans are changing their habits and cutting back on essentials such as utilities. This shift goes beyond a small, symbolic change, and instead represents a direct hit to comfort and convenience. One in 5 is postponing or canceling a vacation. Another 25% say they're delaying major purchases like cars and electronics. These are meaningful lifestyle changes, already underway even before many of the new economic policies took full effect.
We're also seeing a shift in how shoppers define value. Forty percent plan to increase their use of loyalty programs that offer discounts. Thirty-six percent are leaning more on cashback offers, and 31% say they'll prioritize credit cards with rewards. For many, loyalty now hinges on tangible returns.
In short, Americans are embracing austerity. It's my feeling that after 9/11, the 2008 financial crisis, a global pandemic, and now the potential for war, we are no longer seeing people react to things with simple belt-tightening. They are seeking to make more substantial, lasting lifestyle changes. I believe the pandemic jolted people off the traditional path of consumerism, prompting us all to rethink how we spend our money and time. This was a primer for more drastic changes when finances get challenging.
With loyalty benefits already embedded in shopping habits, it's natural for consumers to lean on them more heavily as a built-in pressure valve during tough financial times.
Trust Is Eroding, And Brands Have An Opening
Meanwhile, trust in institutions is sliding. Compared to a similar study we conducted last year, trust in the federal government has dropped from 38% to 29%. Local government trust has slipped by 10 points. This erosion of faith in traditional authority figures creates a void, and brands have an opportunity to fill it by showing up consistently, with empathy and by offering genuine support.
Companies that maintain their focus on quarterly earnings and shareholder calls will find that their customers are operating on entirely different timelines and priorities. I've been studying consumer behavior for decades, and I've seen how at odds consumer thinking and shareholder goals really are. As trust in other institutions declines, some are looking for brands to be present and show a deep understanding of what it feels like to navigate rising prices and uncertainty. Uncovering consumer insights and using that data to demonstrate the value of building customer relationships will outlast economic ups and downs.
Four Ways Brands Can Respond With Empathy And Value
So what should companies do?
• Rethink loyalty as reciprocity. If your loyalty program isn't offering immediate, recognizable value (discounts, cashback, helpful perks), it's not working. People need real reasons to stay that will help to lighten the burden of today's economy.
• Don't ignore the basics. Help your customers do more with less. That could mean flexible payment options, bundling, transparent pricing or simple reassurance that you see what they're going through.
• Communicate with empathy, not polish. In times of uncertainty, overly optimistic brand messages can feel tone-deaf. Replace 'We're excited' with 'We're here.'
• Watch behavior, not just sentiment. Traditional metrics will lag behind. Don't wait for sentiment to shift—respond to the real choices people are already making.
Consumers are hunkering down. We'll be tracking this story as it unfolds, but one thing is already clear: The economic storm is personal, and brands must take thoughtful, deliberate steps toward understanding their audiences.
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