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When the U.S. economy slows down, fear takes the driver’s seat. Budgets are trimmed. Paid campaigns get paused. Promotions are reined in. For many marketing leaders, the reflex is to cut fast and cut deep. But in today’s high-stakes, high-inflation environment, cutting indiscriminately can do more harm than good.
The smartest American brands—those built for long-term resilience, not short-term wins—are approaching things differently. They’re doubling down on customer loyalty.
Because when wallets tighten, loyalty transforms from a “nice-to-have” to a non-negotiable growth engine. It keeps your best customers engaged, drives high-margin revenue, and creates a real moat when acquisition slows down.
In economic downturns, your loyalty program becomes more than a retention engine—it becomes your most reliable real-time feedback loop.
While traditional CRM data may show what’s lagging, loyalty data surfaces what’s still working:
Take Ulta Beauty. With over 40 million active members, Ulta’s Ultamate Rewards program fuels more than 90% of its total revenue. But what’s remarkable is how they use that data during slowdowns.
Instead of blanketing all customers with the same promotion, they:
It’s high-precision personalization at scale. Ulta doesn’t just weather economic dips—they turn them into an opportunity to strengthen their most profitable relationships.
🔹 “Members of loyalty programs spend 67% more than non-members.”
— Bond Brand Loyalty, 2024
🔹 “84% of U.S. consumers say they’re more likely to stick with a brand during tough times if there’s a loyalty program.”
— Deloitte U.S. Loyalty Trends Report, 2024
Customer acquisition costs in the U.S. have risen over 60% in the last five years, and during a slowdown, those costs spike even higher as competition for attention intensifies.
This is where loyalty shines. You already own the relationship. And loyalty data helps you leverage it—not just to retain, but to expand wallet share intelligently.
One U.S.-based electronics retailer recently used loyalty triggers to upsell accessories for high-ticket purchases. Customers who bought laptops received timely, personalized emails with discounted bundles on cases, screen protectors, and chargers. The result?
22% increase in attach rates, all with zero additional ad spend.
This is what enterprise loyalty done right looks like:
🔹 “Upselling to existing customers has a 60–70% success rate, compared to just 5–20% with new leads.”
— Invesp, 2024
🔹 “Personalized loyalty-based offers in the U.S. boost conversion rates by up to 80% compared to generic promotions.”
— Accenture, 2024
Let’s face it: discounting is the path of least resistance—but also the path to shrinking margins. And in a market where inflation has already squeezed supply chains and labor costs, U.S. brands can’t afford to give away profitability.
The alternative? Let loyalty do the heavy lifting.
Instead of offering 30% off sitewide, brands are experimenting with:
One Midwest grocery chain used this approach to great effect. Instead of across-the-board markdowns, they created mission-style challenges: “Spend $50, get 200 bonus points.” Customers responded by spending more per trip, while the brand preserved healthy margins.
🔹 “Loyalty program members are 43% more likely to pay full price when bonus points are offered.”
— BCG, 2024
🔹 “79% of American consumers prefer experiential or access-based loyalty perks over discounts.”
— Forrester Research, 2024
Loyalty isn’t just a revenue driver—it’s a brand trust engine. When times get tough, customers take mental notes on which brands stood by them, not just sold to them.
In a 2024 Edelman survey, 81% of U.S. consumers said how a brand responds during tough times directly affects their loyalty. The implication? This isn’t the time to go silent. It’s the time to build real emotional equity.
Best-in-class brands are stepping up:
Loyalty becomes more than just a mechanism for transactions—it becomes a bridge between the brand’s purpose and its community.
In times like these, you don’t need more media spend. You need better precision and deeper relationships.
Loyalty gives you that. It’s not just about points and perks—it’s about:
As the U.S. economy continues to shift, brands that anchor themselves in loyalty will not only retain—but lead.
Let’s talk about how loyalty can drive your next phase of growth.
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