Another survey shows Americans are tightening their belts

Economic uncertainty makes loyalty programs more important for consumers

By Mark Huffman of ConsumerAffairs

June 4, 2025

• Economic worries are reshaping consumer spending patterns, with loyalty programs and savings taking center stage.

• Gen Z is adapting more aggressively than Gen X, yet shows gaps in economic literacy.

• Trust in government is eroding, raising the stakes for brands to act with authenticity and care.

As the U.S. economy braces for continued turbulence, a new study from Alter Agents reveals that consumers are responding with swift and strategic adjustments to their spending habits. The 2025 Consumer Sentiment Study, based on a survey of over 1,000 nationally representative adults, underscores a significant shift: Americans are cutting back on non-essential spending while leaning more heavily on loyalty and rewards programs to make every dollar count.

“Consumers are adjusting quickly and strategically to what they anticipate will be a tough year financially,” said Rebecca Brooks, CEO of Alter Agents. Brands that reward loyalty, provide real value, and demonstrate they care about their customers will come out ahead.

According to the findings, loyalty-related strategies dominate consumer plans to save money this year. Forty percent of respondents say theyll increase use of loyalty programs that offer discounts, 36% will turn to cashback programs, and 31% plan to rely more on credit cards with purchase rewards. These behaviors reflect a growing desire for financial control and return on every purchase.

Pulling back from non-essentials

With inflation and economic uncertainty top of mind, many are choosing to hold off on discretionary spending. Nearly half (45%) are cutting unnecessary expenses, 36% are dining out less, and a quarter of respondents plan to delay big-ticket purchases like cars and electronics.

The mood is far from optimistic. Sixty percent of consumers expect prices for everyday items to rise, and over half foresee hikes in big purchases. Meanwhile, 41% believe the stock market will decline in the near future.

Generational differences are striking. Gen Z is more likely than Gen X to have made substantial financial shifts, such as reallocating investments or moving money out of banks. However, the younger cohort also revealed gaps in financial literacywhile 44% of Gen Z consider themselves knowledgeable about economics, only 56% could correctly define “tariffs,” compared to 78% of Gen X.

Beyond finances, the study highlights deepening distrust in government and public institutions. Trust in local government fell from 48% in August 2024 to 38% today, and confidence in the federal government dropped from 38% to just 29%. Coupled with growing dissatisfaction over political discourse, these figures point to a broader social discontent that brands must navigate.

This study is a clear signal. Brands that want to thrive in this environment must be proactive, supportive, and strategic in how they connect with their customers, Brooks said.

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