Consumers are confused about tariffs, and brands need to find a way to reach them with the right messaging about the potential for volatile pricing.
- Eight in 10 consumers believe they have at least somewhat of an understanding of tariffs, per Numerator.
- But 36% of consumers can’t correctly identify the definition of a tariff, according to a new DKC report.
Still, 76% anticipate changing shopping habits due to tariffs, per Numerator. Brands need the right messaging to retain those consumers.
“Executives in charge of companies whose products are (or may be) impacted by tariffs must prepare their customers now for the high likelihood of price increases and should be as transparent as possible about the size of expected price increases,” said Sean Cassidy, CEO of DKC.
Here are steps for preparing consumers.
1. Be transparent
“Business leaders must take the time to explain why tariffs are driving the need to increase prices, while characterizing the increases as necessary for the company to ensure they can maintain wages and headcount for their employees,” Cassidy said.
Transparent pricing communication in response to tariffs resulted in a 39-point net confidence increase, the highest in a DKC study.
This transparent communication can come in the form of website pop-ups, social media posts, or online FAQs clarifying pricing and sourcing.
2. Emphasize local sourcing
Communicating that prices are increasing as a brand explores new domestic suppliers resulted in a 32-point net confidence increase, making it the No. 3 communication strategy tested by DKC.
Brands can change packaging or incorporate aisle end caps to highlight locally made products. They may also consider partnering with local influencers to emphasize products’ connections with nearby communities.
3. Communicate how prices benefit employees
Emphasizing that price increases help to maintain employees’ salaries and benefits resulted in the second-highest net confidence increase, per DKC. Cutting worker benefits and salaries were the least popular strategies to prevent price increase from tariffs, DKC's study found.
Cutting executive pay to lower costs was the most effective strategy for preventing price increases, making CEO salary cuts a financially sound choice for businesses that choose to walk the walk.
4. Be careful placing blame
Most consumers were in favor of tariffs on China or Russia, so placing blame on tariffs on either of these countries could be unpopular. And blaming other countries’ retaliation against US businesses resulted in a 16-point decrease in net buyer confidence, per DKC.
5. Promote alternatives
Tariffs may reduce consumer brand loyalty, but that’s also an opportunity to attract new consumers. Marketers should lean into the particular advantages of their own brand—be that price, local sourcing, or brand values—to show how their product could substitute for others facing tariffs, per Crew Marketing.
6. Prepare across industries
Consumers expect tariffs to impact electronics, automobiles, and gas the most, per DKC. But for categories like beauty and sports, consumers may not understand how tariffs will have either direct or reverberating effects on that industry.
If brands can’t keep prices stable, they should communicate why items are more expensive due to supply chain issues or reshoring costs.
7. Tailor messaging to your customer
Republicans are more likely to be pro-tariff than Democrats. Meanwhile, 50% of Gen Zers can’t accurately identify tariffs, per DKC. Messaging surrounding tariff-driven price increases should differ depending on a brands’ core demographics.
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