A few weeks ago, some of the Loyalty & Reward Co team took a little field trip into the luxury floors of David Jones. We weren’t browsing for ourselves. We were on a mission to see how luxury brands are promoting their loyalty programs at point of sale.

We wandered. We searched. We asked questions. And honestly, we struggled to find anything.

No join-now prompts.

No program messaging.

No visible incentives.

It almost felt like loyalty wasn’t there at all. And that’s exactly the point.

Luxury loyalty is subtle, personal and refined. It is designed to be felt, not advertised. And right now, it is booming!

Why luxury brands are leaning into loyalty now

At Loyalty & Reward Co, we’re seeing a sharp increase in enquiries from luxury brands across fashion, skincare and jewellery. Not because loyalty is new to luxury, but because the environment around it is changing.

Luxury brands operate in a low buying frequency world, where a customer may only purchase once or twice a year. At the same time, acquisition costs are rising, copycat market entrants are becoming more common, and customers increasingly expect more than a transaction. In this context, maintaining relevance and emotional connection between purchases is critical, and loyalty is the engine that keeps the relationship alive.

The data we’re seeing reinforces the shift. A smaller proportion of customers is driving an increasing share of revenue, making the Pareto dynamic more pronounced than we’ve seen before for luxury brands. These luxury consumers are not motivated by discounts or points. They care about how a brand makes them feel, what it represents, and whether they feel personally recognised.

As a result, retention becomes more important than acquisition. Relationships become the real currency. And loyalty evolves from a points-based mechanic into a recognition-led strategy that signals value, importance and belonging.

Why traditional loyalty models fall short in luxury

Many mainstream loyalty models are built for frequency. Luxury is built for meaning.

Earn-and-burn programs are easy to understand, but they are also easy to copy. They rely on discounts and delayed value, which can feel transactional and, in a luxury context, they can dilute brand equity.

Tier and status programs introduce a sense of exclusivity, but they are very often overt. Benefits are declared upfront, status is visible, and progression follows a predictable path. While effective in many categories, this transparency can remove the sense of intrigue that luxury thrives on.

As a result, many high-end luxury brands are choosing a different path. One centred on pure recognition.

Pure recognition programs are often invite-only and intentionally discreet. There are no public tiers, no point balances and no reward stores. Instead, brands use undisclosed criteria to identify their most valuable clients and reward them with access, experiences and moments that feel deeply personal.

The goal is not to incentivise spend. It is to acknowledge importance.

A luxury brand we’ve seen execute pure recognition well is Hermès which you can read more about here.

What we’re seeing in the market

Across global luxury brands, we’re seeing consistent patterns emerge.

High-end fashion houses are leaning into recognition-led models that prioritise private access, exclusive previews and highly personalised experiences. Loyalty here is less about structure and more about how a client is made to feel.

Luxury jewellery brands tend to focus on intimacy and milestone moments. Private viewings, bespoke services and long-term clienteling relationships take precedence over transactional rewards. The emphasis is on trust, longevity and emotional significance.

Premium skincare and beauty brands focus on education, early access and tailored regimens rather than discounts.

What unites them is restraint. Loyalty is not shouted. It is whispered.

Often, if you are not meant to see the program, you won’t.

So how do luxury brands capitalise?

The brands winning in luxury loyalty are not asking, “How do we reward spend?” They are asking, “How do we make our best clients feel truly known?”

They invest in omnichannel excellence.
They empower frontline advisors with insight and autonomy.
They design experiences that align with brand values.
And they treat loyalty as a relationship strategy, not a promotional one.

Back in David Jones, our inability to spot loyalty signage was not a failure of execution. It was evidence of sophistication.

Luxury loyalty does not need a poster. It needs intention.

And as more luxury brands explore loyalty as a growth lever, the opportunity is clear.

Those who design with subtlety, humanity and purpose will build relationships that last far beyond the next purchase.

We’ve been fortunate enough to act as loyalty consultants for global luxury clients including Penfolds, Hugo Boss, Shiseido, Rationale, and the Avolta brand portfolio which includes Louis Vuiton, Chanel, Dior, Coach, Dolce & Gabbana, Bvlgari, Cartier, Prada, Bally and more.

Get in contact with us to design your leading luxury loyalty program.