This article is part 1 of the Customer Loyalty Series
- Part 1: When Prices Rise, Loyalty Matters Most
- Part 2: What Hilton Got Right: The Three Elements of Loyalty Recognition That Actually Work
- Part 3: How a Single Pricing Moment Cost a Service Business a Loyal Customer
With potential tariffs and higher gas prices threatening to raise prices, businesses face the challenge of maintaining customer relationships while navigating financial pressures. Our research suggests that brand loyalty is a powerful buffer against price sensitivity, one that companies would be wise to continue cultivating.
What Recent Price Pressures Have Taught Us
During the recent inflationary period post-Covid, we conducted a series of focus groups for a fast-food client that yielded insights still directly relevant to today’s inflationary backdrop. Our most significant finding: consumers with the strongest brand attachment demonstrated markedly less concern about price increases.
Their most loyal customers said they would continue eating at their restaurants even with higher prices. These loyal customers expressed understanding about the economic factors driving those increases and indicated they intended to maintain their purchasing patterns. Their relationship with the brand had moved beyond purely financial or transactional considerations.
Recent global research reinforces these findings. According to a March 2025 UserTesting study surveying 4,000 consumers across the United States, Australia, and the United Kingdom:
The Nostalgia Connection
Particularly noteworthy in our research was the effectiveness of nostalgia-based marketing in reinforcing brand loyalty. Customers who associated the brand with positive memories from their past reported deeper emotional connections and greater willingness to keep visiting even when prices rose.
The UserTesting study confirms this effect in striking terms. Nearly two-thirds of Americans (71%) reported being more likely to buy from brands they associate with their childhoods. And approximately two-thirds (66%) indicated they would pay extra for discontinued products from brands they loved.
This nostalgia effect creates what we think of as a “loyalty shield” — a psychological buffer that reframes a price increase as a reasonable accommodation to maintain a valued relationship, rather than as a reason to switch. When a brand is wrapped in positive memories, the calculus of price comparison changes entirely.
Strategic Implications for Businesses Facing Price Increases
As companies prepare for potential tariff-induced price increases, several strategic approaches emerge from both our client research and the broader data:
- Continue investing in building loyalty: Building strong brand relationships before price increases become necessary provides critical protection against customer attrition. The UserTesting study reveals that the average loyal customer is dedicated to 5–6 brands, with top loyalty categories including grocery/food (up to 54%), clothing (up to 43%), and electronics (up to 30%).
- Leverage authentic nostalgia: Connecting your brand to positive shared memories creates emotional resilience in customer relationships. The data shows consumers would pay up to 27% more for nostalgic product comebacks.
- Communicate transparently: Loyal customers appreciate understanding the “why” behind price changes. Clear, honest communication about external factors like tariffs helps maintain trust rather than erode it.
- Provide value beyond price: Emphasize the non-monetary benefits your brand delivers. According to the UserTesting research, the top reasons for brand loyalty include consistently high product quality (up to 60% globally), positive experiences (up to 59%), and long-term usage (up to 57%).
- Consider tiered approaches: Protect your most loyal customers from the full impact of price increases through loyalty programs, creating a tangible reward for brand commitment — and a powerful signal that their loyalty is recognized.
Industry-Specific Opportunities
The UserTesting study provides valuable data on price tolerance across sectors. Brand loyalists reported willingness to pay significantly more for their preferred products in gaming (up to 34% more), jewelry and watches (up to 33% more), and fitness (up to 27% more). Companies in these categories may have more flexibility than they realize when addressing tariff-related price pressures, provided they have invested in building genuine loyalty first.
The Bottom Line
Tariff-driven price increases present real business challenges. But our research makes one thing clear: strong brand loyalty provides significant insulation against market disruptions. As Bobby Meixner, Senior Director of Industry Solutions at UserTesting, put it: “During periods of financial strain, consumers are less willing to take chances. They’re focused on value and experience, and they’re willing to spend more if they trust a brand to consistently deliver on its promise.”
The window to build that trust is before prices rise, not after. Brands that have invested in deeper customer relationships and emotional connection will navigate price pressure from a position of strength. Those that haven’t will find that a price increase is precisely the moment customers finally make the switch they’d been considering.