U.S. tariffs are doing more than raising prices—they’re reshaping consumer priorities and forcing brands to reinvent their marketing playbooks. For leaders in the direct-to-consumer (DTC) space, this moment demands more than agility; it requires precision, foresight, and a unified vision across functions.
Wunderkind’s May 2025 twin reports—one surveying U.S. consumers, the other tapping 168 senior marketers—paint a clear picture: value has overtaken loyalty, and owned channels are becoming the lifeline for profitable growth. Below, we unpack key insights and strategic implications for executive decision-making.
The Consumer Lens: Loyalty is on Sale
Tariff-driven inflation is cutting deep into consumer behavior—and brand allegiance.
- 76% of consumers are open to trying new brands if the price is right. Millennials and Gen Z are leading this shift, signaling the end of unconditional loyalty.
- Discount thresholds are surprisingly modest: 66% would switch brands for a savings of 20% or less. Even small price gaps now carry major implications for market share.
- Consumers are becoming more methodical: 42% delay non-essential purchases, 38% are doing more price comparisons, and loyalty program signups are on the rise.
💡 Executive takeaway: Affordability is now a strategic differentiator. Brands must earn loyalty through clarity, value, and timing—not heritage.
The Marketer’s Response: Value, Precision, and First-Party Data
On the marketer side, leaders are moving quickly to recalibrate growth strategies in light of both consumer volatility and operational cost pressures.
- 72% of brands have already raised prices, most often in select, tariff-impacted categories.
- 48% are doubling down on owned channels—email, SMS, and web—seeking margin protection and stronger customer engagement.
- First-party data is the #1 strategic priority for nearly half of marketers, seen as critical to personalization, segmentation, and lifetime value.
Critically, these shifts are not about doing more with less—they’re about doing better with what you own.
Performance Pressure is Real—and Rising
As CMOs adjust to economic headwinds, they're embracing accountability:
- 56% are prioritizing performance-based marketing technologies, with ROI front and center.
- Holiday strategy is getting a full redesign—68% of marketers plan to overhaul Q4 playbooks, with early testing and segmentation in focus.
- Behavioral triggers are surging—from cart abandonment to deal alerts, automated journeys are now the norm, not the experiment.
💡 Executive takeaway: If your teams aren’t aligning around owned data, automated execution, and provable outcomes, you’re behind the curve.
Price Increases Demand a New Loyalty Playbook
In both reports, one consistent insight stands out: the days of relying on passive retention are over.
From consumers:
- 90% say they’ll change behavior in response to rising prices, including switching brands, delaying purchases, or reducing frequency.
- Only 10% would accept price hikes without changes—a sobering statistic that spans categories from groceries to apparel.
From marketers:
- Enhanced loyalty perks (49%), bundled offers (52%), and flexible returns (41%) are replacing blanket discounts.
- Transparency is gaining ground: brands explaining price hikes are retaining trust, especially among Gen Z and Gen X.
💡 Executive takeaway: Smart loyalty isn’t a program—it’s a system. Retention now depends on real-time incentives, frictionless experiences, and value-based messaging.
Strategic Actions for DTC Leaders
Wunderkind’s reports offer five clear moves for brands aiming to protect margins while growing share:
- Shift Budget to Owned Channels: Paid media inflation is real. Build your future on channels you control.
- Lean into Value + Scarcity: Communicate urgency through limited-time offers, loyalty exclusives, and smart bundles.
- Accelerate First-Party Data Capture: Pop-ups, overlays, and email/SMS opt-ins are no longer optional.
- Deploy Identity Resolution: Recognize anonymous visitors and convert them early in their journey.
- Test Cross-Channel Sequencing: Email and SMS work better when coordinated—and personalization pays dividends.
For brands that act now, these disruptions are not just obstacles—they’re a blueprint for modern, margin-positive marketing.
Final Thought: Tariffs as a Catalyst for Transformation
Tariffs may be a short-term policy lever, but their effects are creating long-term behavioral and strategic shifts. Executives who treat this moment as a wake-up call—not just a headwind—will emerge stronger.
In a market where value is the new loyalty, and owned data is the new currency, DTC leaders have the opportunity to rewrite the rules of engagement. Those who move with clarity, courage, and cohesion will lead not just their categories—but the future of consumer commerce.
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