What: Department stores reimagine loyalty programs by combining digital innovation with human connection, as industry leaders share strategies at retail panel discussion.

Why it is important: This evolution reflects the retail industry's recognition that successful customer engagement requires a sophisticated blend of digital innovation and personalised service.

Leading luxury department store executives shared insights into the future of customer loyalty during a panel discussion featuring Selfridges' COO Leonie Foster, Lane Crawford CEO Jennifer Woo, and El Palacio de Hierro CEO Juan Carlos Escribano. Selfridges has launched 'Selfridges Unlocked', a distinctive five-tier program where members progress by accumulating both spending and time-based 'keys' through various activities like restaurant visits, skate bowl usage, and event attendance. This innovative approach allows customers to achieve VSP (Very Selfridges Person) status without necessarily spending money. Lane Crawford emphasises personal relationships, illustrated by staff members going above and beyond, such as delivering truckloads of products to time-poor customers' homes. Woo stressed the importance of human interaction in building loyalty, noting that while data is valuable, direct customer engagement in stores remains crucial for understanding and serving customers effectively.

IADS Notes: The evolution of luxury department store loyalty programs reflects broader industry transformation. According to WWD's February 2025 coverage , Selfridges' innovative 'Unlocked' program represents a significant shift by rewarding both purchases and experiential engagement through digital "keys," moving beyond traditional points-based systems. BCG's December 2024 analysis  revealed that with over 35% of loyalty program members planning to cancel memberships, retailers must urgently transform their approaches to meet evolving consumer expectations. Retail Wire's August 2024 report  highlighted how successful VIP services are crucial, with top 1% of customers contributing around 25% of department store sales. WWD's December 2024 coverage  showed how Harvey Nichols' implementation of a centralised loyalty platform demonstrates the industry's move toward unified commerce solutions that balance digital capabilities with personalised experiences. The contrasting approaches of Selfridges' experiential rewards and Lane Crawford's high-touch personal service illustrate how luxury retailers are reimagining customer engagement beyond traditional transaction-based loyalty programs.

The future of loyalty, according to luxury department stores