4 ways tariffs and turbulence are shifting consumer habits.

Economic shifts and loud news headlines influence consumer behaviors. So what happens when multiple economic and global shifts happen at once? How does it impact consumer behavior and how should digital brands be responding? To answer these questions, we went to the data, polling 1,600 consumers in the US and UK and pairing that with anonymized aggregated insight from the Quantum Metric platform. Here’s the lowdown:

1. Budgets squeezed to necessities only.

Are consumers worried about tariffs? You bet. 55% of consumers are cutting back on discretionary spending—with 40% of US and 26% of UK consumers sticking to the basics to maximize savings. Retail is already feeling it, with conversion rates down 10% year-over-year (YoY) for Q1.

So where are customers making cuts? We’re seeing less dining/take out, apparel, and home goods.

Looking at data from Quantum Metric’s platform, we see big box and luxury retailers have experienced the biggest drop in conversions for Q1 YoY, but grocery is booming.

And it’s not just retail. Telecom and media services are feeling it, with 57% of consumers looking to reduce or renegotiate the cost of their current cell phone, internet, or TV/streaming services.

Listen up: For digital brands, communication now is paramount to ease consumer fears and drive loyalty too. In fact, 56% of US and 72% of UK consumers stated a retailer's failure to clearly communicate price increases would negatively impact their loyalty.

2. Rethink promotions to capture value shoppers.

The impact isn't solely about whether consumers are shopping, but significantly about how they are purchasing and what brands can do to change tactics.

The majority of consumers (53%) will opt for generic grocery items if their preferred brand's price increases, but skip home goods or apparel items if prices have risen.

This highlights the classic “value swaps” challenge many retailers can face and brands like Bass Pro have mastered. As prices increase, retailers need to consider offering tailored recommendations for lower cost options or recommended deals when combining items.

Additionally, revenue per session is significantly down by 31% for big box and luxury retailers, meaning more website traffic but less sales at the same rate as in 2024.

Listen up: While not surprising given shifts to necessity purchases, it raises the crucial question of how to execute promotional and marketing campaigns that attract more high-intent traffic during an economic downturn. It is time to rethink those promos!

3. Travel goes local and low cost.

Travel is feeling the pinch too. While traffic rates for the travel industry are up, conversion rates have fallen by an average of 30% for the first quarter of the year. For 2025, a growing number of consumers are choosing to stay local.

In response, travel brands should consider more domestic and local travel offerings to drive bookings this year. With price sensitive consumers, there could also be an opportunity to promote off-peak times for better deals.

Loyalty programs can be huge for consumers seeking more affordable travel options. When looking to cut costs:

• 33% will book with travel sites where they are loyalty members
• 32% will only book with hotels/airlines they are loyal to for perks/discounts
• 29% identify travel destinations primarily based on the average price of airfare/hotel

Listen up: But messing too much with loyalty program benefits could negatively impact consumer loyalty. An overwhelming 89% would question their loyalty if a brand discontinued a long-standing practice. This is where incorporating customer feedback is key, pulling in insight from customer surveys and other channels can help to determine when big changes could have a big negative impact.

4. Airline headlines are creating flight fears.

Recent negative airline headlines have led to 60% of consumers expressing concern about flying. That said, half of those expressing concerns will still book a flight. Despite the overall decrease in conversion rates, airline booking rates are relatively flat YoY, indicating that while concerns exist, they haven't entirely halted bookings.

However, how consumers book is shifting. Findings show 55% of consumers have adjusted their flight booking behaviors due to recent news, with 28% reporting they will conduct more research into flight incidents for specific airlines. This increased scrutiny might explain why average booking values for airlines are up 25% YoY, suggesting safety concerns trump price sensitivities.

Listen up: The need for the right and consistent communication across channels can make a difference here, helping to ease consumer minds and build trust in the brand. As United will tell you, it's important to think about not just what you say, but the ways you can proactively uncover opportunities to connect with a customer.

What can also ease consumers minds, a seamless and error free experience. Encouragingly, travel brands saw a 10% drop in error rates and a 15% drop in abandoned cart rates between Q1 2024 and Q1 2025.

Key brand takeaways.

As we navigate these shifts, several key strategies emerge for businesses in both the retail and travel sectors:

• Create urgency: Craft offers that resonate with consumers' needs and highlight the value of products and services, right now.
• Maintain open communication: Talk to your customers. Especially about price increases due to tariffs or safety concerns, clear and proactive communication is crucial for maintaining customer loyalty and trust.
• Rethink personalization: Know your customers pain points and responses to pricing changes to build offers that will make them more likely to buy or book.
• Continuously improve: Have processes in place to continuously iterate and improve your experiences.

Interested to learn more about how Quantum Metric can provide the right visibility into your customers’ digital habits? Take a test ride in our product tours.