Family grocery shopping and looking at school supplies

What The Cost-Of-Living Crisis Means For FMCG Loyalty

Consumer GoodsArticle

February 04, 2026

The cost-of-living crisis continues to impact consumers globally – and as summer approaches, many are likely to feel that pressure grow. For families, in particular, what should be a season of fun and enjoyment can quickly become a period of heightened financial strain – with additional childcare, holiday clubs and activities, higher food costs without school meals, and the inevitable out-of-school spend on days out, activities, entertainment, and travel.

These seasonal pressures do not only stretch household budgets, but risk reshaping entire purchasing decisions. For FMCG brands operating in a high-volume, low-margin environment, there are significant implications.

Because when budgets are tightened, customer loyalty is tested, So, is there a real danger that shoppers will simply follow the discounts? Or could the economic backdrop help deepen consumers’ emotional connection to brands, this summer?

Loyalty under pressure

Our FMCG research reveals that loyalty is consistently influencing consumer behaviours – but there are limits.

While 90% of grocery shoppers say they are loyal to a particular brand, 68% admit they have switched due to a reward-based promotion. And notably, 87.5% would consider switching for a reward over a discount.

So, in the summer months – when consumers are managing the increased responsibility and cost of keeping children entertained, active, and engaged – the temptation is to offer a discount to ease the financial burden. But what if a brand’s rewards could help solve the wider challenge families are facing – creating meaningful, affordable memories during an already expensive season.

The perils of discount dependency

Leaning too heavily on discounts is a risky strategy. Not only does it erode margin in an already tight category, but it also conditions consumers to expect price reductions from the usual suspects. Over time, this weakens brand equity and makes it increasingly difficult to differentiate on anything other than price.

In the summer months, this risk is only heightened. Competitors are all fighting for attention with similar tactics, leading to a race to the bottom that benefits neither brands nor shoppers in the long term.

This strategy also highlights that value and cost are two very different things.

Value vs cost

As we explored in our previous blog on the value : cost paradox, consumers don’t make decisions based purely on price. Instead, they assess what they gain, relative to what they spend.

This is an important distinction, because, while a discount does reduce overall cost, it doesn’t necessarily increase perceived value. In contrast, a well-designed reward – particularly one that delivers a highly-sought-after experience – can drastically elevate the overall position.

The decision then shifts from price vs. quality to value vs. cost.

Turning everyday purchases into summer experiences

Summer is a brilliant time for brands to tap into experiential value. Families are actively looking for ways to fill time, create memories, and keep children engaged – often while juggling financial constraints. Brands that can help alleviate some of that load will make a lasting impression.

By offering access to days out, activities, and family experiences, brands can transform everyday purchases into something far more meaningful. And importantly, these rewards appeal to more than the wallet, they resonate with the heart.

Here, TLC’s global rewards network becomes particularly powerful, and we’ve seen this strategy deliver measurable impact across multiple FMCG campaigns.

In Indonesia, Rinso needed to reinforce brand love without discounting. By offering free kids’ admission to over 150 attractions, the campaign aligned perfectly with its “Dirt is Good” philosophy – encouraging play, exploration, and family bonding. The campaign led to a 15% sales uplift and a 30% repeat engagement rate. The product remained the same, but the perceived value increased dramatically.
During peak cost-of-living pressure in the UK, Birds Eye chose not to compete on price. Instead, it offered free family activities worth £20+ with every purchase. This directly addressed the cost implications of keeping children active during holidays and leaned into the brand’s identity as a household favourite. The campaign delivered a 9% sales uplift while strengthening emotional connections with families.
A complementary campaign extended this further, offering free Hasbro games to encourage family time at home. With over £2.1 million in rewards claimed and redemption rates triple the industry norm, this initiative demonstrated how powerful shared experiences can be in driving both sales and brand affinity.
Already positioned as a price leader, Aldi didn’t need to discount products any further. Instead, it enhanced its proposition by offering free sports sessions in the lead-up to the Olympics. Over 200,000 sessions were claimed, reinforcing brand engagement while supporting families during a financially challenging time, when all eyes were on this global competition.
And for its 50th anniversary, Kinder created “Make a Wish” – a campaign that brought children’s dream careers to life through immersive experiences, from astronaut to adventurer. With access to 500+ locations, families could turn everyday purchases into unforgettable moments close to home, driving a +5.7% uplift in sell-in and +6.4% in sell-out.

Engaging the head, wallet, and heart

These campaigns act as a powerful reminder of a well-trodden concept, that the most effective loyalty strategies engage three core drivers:

The head - rational value and utility.
The wallet - financial benefit.
The heart - emotional connection.

Discounts primarily target the wallet. But in isolation, they are rarely enough to build lasting loyalty.

Experiential rewards, on the other hand, operate across all three areas.

They justify the purchase rationally (head).
They offer tangible financial value (wallet).
And, they create meaningful, memorable experiences (heart).

It’s not all doom and gloom

The cost-of-living crisis comes with a lot of challenges. Shoppers are more price-sensitive and willing to switch brands, but they are also more open to alternative labels that deliver genuine, relevant value at the right time.

So, while competitors continue to compete on price, brands that invest in experience-led rewards can differentiate in a commercially sustainable and emotionally resonant way. And, summer is the perfect moment to strike.

We combine deep behavioural insight with a global network of rewards to help brands create campaigns that drive acquisition, increase engagement, and build lasting connections.

Are you ready

to rethink your summer strategy?

Let’s get started

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