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Why America’s Smartest Brands Double Down on Loyalty in a Recession

Discover why leading U.S. enterprise brands are turning to loyalty as their most powerful recession-proof strategy. From smarter segmentation to margin-friendly rewards, learn how loyalty can drive sustainable growth—even in an economic slowdown.

By

Kirsten Nielsen

4 Min Read

July 23, 2025

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.

 

Your Blueprint for What Still Works

 

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:

 

  • Who’s still spending—and at what cadence
  • What categories are sticking
  • Which segments are worth doubling down on
  • How purchase behavior is shifting across tiers

 

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:

 

  • Segment users based on recent spend velocity and frequency
  • Deploy early-access campaigns for top-tier members
  • Trigger surprise bonus point nudges for lapsed users
  • Craft curated bundles aligned with individual purchase patterns

 

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

Smarter Upsell & Cross-Sell: Stretching Spend Without Stretching Budgets

 

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:

  • Tier nudges: “You’re $15 away from Gold status—unlock free shipping for a year.”
  • Behavioral bundling: “You’ve purchased protein powder 3x this month. Try our new energy bars?”
  • Win-back sequences: Lapsed users get dynamic offers based on last browsed category, not just blanket discounts.

 

🔹 “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

Margin Protection: Reward Loyalty Without Racing to the Bottom

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:

  • Double or triple points on full-price items
  • “Spend & earn” challenges that gamify purchases
  • Members-only drops and exclusive early access to high-demand SKUs

 

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

Build Brand Equity While Everyone Else Cuts Back

 

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:

 

  • Sending heartfelt thank-you notes to long-time members
  • Offering flexible point extensions or pausing tier expirations
  • Being transparent about delays, price changes, and product availability
  • Giving back—donating points to social causes or enabling point-sharing within families

 

Loyalty becomes more than just a mechanism for transactions—it becomes a bridge between the brand’s purpose and its community.

 

Final Thought: Loyalty Is the U.S. Enterprise Brand’s Recession-Resistant Growth Lever

 

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:

  • Understanding your highest-value segments
  • Serving them smarter
  • Selling more without sacrificing profit
  • And earning trust that lasts beyond a single transaction

 

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.

Kirsten Nielsen

Kirsten Nielsen is a results-driven executive with over 20 years of progressive experience in partnership development and strategic account management. Specializing in the CPG, retail, and ecommerce sectors, Kirsten excels at fostering long-lasting client relationships that drive value, growth, and innovation. Currently serving as the Director of Client Success at Capillary Technologies, Kirsten continues to leverage her expertise in B2B, B2C, SaaS, and CRM to create impactful loyalty strategies that align with client goals and market trends.

Kirsten Nielsen is a results-driven executive with over 20 years of progressive experience in partnership development and strategic account management. Specializing in the CPG, retail, and ecommerce sectors, Kirsten excels at fostering long-lasting client relationships that drive value, growth, and innovation. Currently serving as the Director of Client Success at Capillary Technologies, Kirsten continues to leverage her expertise in B2B, B2C, SaaS, and CRM to create impactful loyalty strategies that align with client goals and market trends.

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