Strategy
Jul 22, 2025
5 ways leading brands are protecting margin during market volatility

Our world is shaped by volatility. In recent years, the COVID pandemic, global hostilities, technological advances, and substantial tariffs have disrupted the marketplace and forced brands to rethink what resilience means.
This new reality presents a challenging dilemma for retail leaders: protect margin or protect loyalty? The conventional wisdom suggests you must choose one at the expense of the other. However, innovative brands are proving this doesn't have to be a binary choice.
The trends outlined below are redefining how leading brands attract, convert, and retain high-value customers. By using signal-based strategies—grounded in margin, customer sentiment, and behavior data—brands are defending premium pricing, strengthening retention, and delivering value where it matters most.
1. Premium without promotion
Today's premium customer isn't just price-sensitive, they're perception-sensitive. When shoppers question whether a product is "worth it," they're not simply evaluating the price tag. They're weighing quality, consistency, brand trust, and perceived value against cost.
Leading brands understand this distinction and lead with product clarity, consistency, and value reinforcement to earn the right to hold price. Rather than defaulting to discounts, they emphasize product innovation, performance benefits, and brand promise across every channel moment.
Data from a recent research report supports this approach: 68% of consumers will pay 25% more for brands that focus on consistent product quality and experience. “Premium” isn't about price; it's about clarity.
2. Selective incentives drive stronger equity
Contrary to what many marketers may believe, strategic promotions don't cheapen your brand—they can actually strengthen it. The research is clear: 76% of consumers say the right promotion improves their perception of the brand.
The key word here is "right." Blanket discounts dilute value perception and train customers to wait for sales. In contrast, signal-led incentives (based on margin, segment, or sentiment) create both conversion and credibility.
Forward-thinking brands are using signals like price elasticity and promotional dependency to inform targeted incentives. They're reinforcing perceived value before, during, and after transactions, making price integrity a brand advantage rather than a vulnerability.
3. Personalization as pricing strategy
Personalization isn't just for engagement anymore. It's evolving into a sophisticated margin defense tool. The smartest brands are tailoring offers, creative, and product display experiences based on elasticity, intent, and average order value signals.
This approach delivers remarkable results: 58% of consumers say personalized recommendations make them more loyal, even when prices increase. By suppressing promotions for high-margin SKUs when behavior shows purchase intent, brands can maintain pricing power while still delivering relevance.
The most powerful personalization gives brands the confidence to hold price and optimize content, offers, and spend based on what individual customers truly value.
4. Retention = Margin Protection
While most brands focus their resources on acquisition, the data consistently shows that retention is where sustainable profitability lies. A 5% lift in repeat purchase rate can increase profitability by up to 95%, according to research from Bain & Company.
The path to price resilience starts with loyalty. Returning customers don't just buy again; they buy more often, with fewer discounts, and at higher margins. They're also more likely to understand and appreciate your brand's value proposition beyond price alone.
Brands protecting their margins are investing in experiences that reduce churn, increase repeat purchase rates, and deepen emotional loyalty without adding acquisition costs. They're identifying and investing in their highest-value segments, building retention loops through experience (not just email), and replacing discount incentives with exclusive access or surprise-and-delight tactics.
5. Re-released items are inspiring nostalgia and recapturing loyalty
In an uncertain economic climate, consumers seek comfort in the familiar. Brands are capitalizing on this by reviving beloved products from their archives, and customers are responding enthusiastically. A recent study shows that 55% of consumers consider retired products more valuable than anything brands currently offer, and they're willing to pay an average of 32% more for products they once loved.
These re-releases rekindle emotional connections that transcend price sensitivity. By using customer data to identify which past products still have cultural relevance and emotional pull, brands can create limited-edition offerings that bring formerly loyal customers back into the fold.
Learn more about Credera’s four-part resilience framework designed to transition leaders from reactive to proactive.
Signal-based strategy: The Credera Framework
Resilient brands are no longer relying on static calendars or intuition to make pricing and promotional decisions. Credera's proprietary four-part framework helps brands respond faster and smarter to market signals:
Detect: Identify early signals across tariff exposure, customer sentiment, price elasticity, and product performance. Establish a marketing early warning system that fuses SKU-level margin, sentiment, elasticity, and first-party behavioral data.
React: Shift content, spend, and promotions based on margin, traffic patterns, and customer segment behavior. Connect margin, price sensitivity, and behavioral signals to your execution stack—including media, CRM, PDPs, and site content.
Automate: Integrate intelligence into your MarTech solutions (e.g., CMS, CDP, and media tools) for faster execution across segments and SKUs. Build connected systems that translate business signals into immediate action—from PDP updates to media suppression to promotional adjustments.
Anticipate: Forecast SKU, segment, and tariff vulnerabilities before they impact ROI. Use predictive models to adjust content, offers, and campaign timing before negative performance impacts occur.
The bottom line
The ability to protect margins while maintaining customer loyalty isn't just a competitive advantage—it's a business imperative. Brands that successfully navigate this balance are building resilience that will serve them well regardless of what economic conditions emerge.
Credera helps retail and consumer brands build margin-protective strategies that go beyond discounts. We combine real-time signal logic with customer experience, personalization, and pricing architecture to help clients thrive in volatile market conditions.
Schedule a working session with our retail strategy team to assess your brand's signal readiness and identify immediate opportunities.
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