New Data Reveals Challenges for Brands as Consumer Loyalty and Confidence Wanes
RESTON, Va., April 16, 2025 /PRNewswire/ — Resonate, the leader in AI-powered predictive consumer and voter intelligence, today released its Summer 2025 Consumer Trends Report, revealing a major increase in consumer angst about the economy, a significant decline in brand loyalty, and a surge in consumer price sensitivity.
According to Resonate’s real-time data, as of April 2025, consumers belief that the economy will return to pre-pandemic conditions has reached an all-time low. 45.5% of consumers now believe that the economy will never return to normal, up from only 19.8% of consumers who held that belief in the summer of 2021 at the height of the global meltdown resulting from the coronavirus pandemic. An additional 38.5% believe it will take at least 7 months or more to see improvement.
This economic discontent is applying additional pressure to brand loyalty which was already taking a hit. A staggering 45% of consumers are now opting for cheaper store or alternative brands to mitigate financial pressures. Additionally, 21% are switching channels, purchasing familiar products from different retailers, both online and offline. This trend, coupled with a nearly 22% increase in consumer anxiety about the economy over the past six months, poses a critical challenge for brands seeking to retain their customer base.
“The data is clear: brand loyalty is eroding at an alarming rate,” said Bryan Gernert, CEO of Resonate. “In this environment, brands must quickly adopt new, data-driven customer retention strategies to navigate this turbulent economic landscape and respond to these rapidly evolving consumer behaviors with actionable strategies.”
The Summer 2025 Consumer Trends Report also reveals key insights into consumer behavior during the upcoming travel and summer holiday season:
- Brand Social Justice: Support for brands that attach themselves to a particular cause is down across the board. The number of people who say that no cause would influence them to buy from a particular company has risen steadily over the past year and a half: It started at 21% in summer 2023 and has remained at an all-time high of 30% for the last six months.
- That said, there is a core segment of ethical values-oriented consumers who will still pay more despite the economic pressure.
- Inflation Blame: 39% of consumers continue to blame corporate price gouging for inflation, indicating that corporate efforts to shift blame are ineffective. 37% attribute inflation to excessive government spending.
The full report can be accessed HERE.