Loyalty Blogs

How often have you seen premium brands use sales or discounts to boost their sales and profits? We bet not too many times.

What does that mean? Do they not need more sales, revenue, or profitability? They certainly do, but not at the cost of their brand image. Luxury brands do not explicitly announce sales, discounts, or other promotional offers. They are known for sophistication, premium pricing, and a high-end experience. Hence, premium brands face difficulty retaining customers through promotions and seasonal sales announcements.

This blog will discuss how luxury brands can retain customers without losing credibility and what role brand loyalty programs play in them.

Why Premium Brands Avoid Explicit Sales Announcements?

Luxury brands run on their perceived brand image. They invest a lot to build an image of exclusivity and prestige. Explicit sale announcements may not align well with their image and end up diluting it.

Moreover, premium brands often set their prices near the upper limit, justifying them with the quality, craftsmanship, and exclusivity of their products and services. Announcing frequent sales might affect pricing integrity.

It is important to pay close attention to changing customer needs, particularly among younger generations with high standards for their shopping experiences. Premium brands require promotions as much as value brands. Effective brand loyalty programs play an important role in building lasting customer relationships and maintaining a consistent brand image.

Let’s find out how.

How to retain customers in the luxury industry without harming brand image?

Customer retention is important to keep up with soaring marketing and customer acquisition costs. Brand loyalty programs are a great way to engage and retain customers. Let’s take a closer look at what can ideally replace sales and discounts.

1. A VIP Loyalty Program to Rescue

High-end clients feel valued when there’s a sense of exclusivity. In response to extravaganza sales and offers, luxury and premium brands can offer exclusive perks, early access to new collections, and personalized experiences.

2. Experiential Rewards go a Long Way

Personalization is the secret weapon for combating revenge shopping trends. As a premium brand, when you use a customer loyalty software solution, you get your hands on customer data and analytics. Using these insights, premium brands can create personalized promotions to meet customer expectations. Experiential rewards, such as consultations with designers or exclusive event invitations, play an important role.

3. Roll Exclusive Gifts with Purchases

Adding some tangible value with every purchase contributes to the allure of luxury products. Dior offers free travel-size products, gift boxes, personalized messages, and complimentary samples to their customers to win their loyalty.

4. Member-only Discounts

Private promotions can do the trick for premium brands. It doesn’t hamper their brand image or retain customers effectively. Private promotions are reserved for members to enhance exclusivity. Brands can introduce tiered member rewards to build loyalty and a sense of privilege.

5. Go Digital

Technology is simplifying everything. As a luxury brand, you have high standards to meet when it comes to building a brand loyalty program. Investing in a robust customer loyalty software solution can help you engage and retain customers.

6. Help them Serve a Purpose

Infusing luxury with social responsibility can attract customers. Luxury brands can encourage customers to allocate their discounts toward charitable causes, creating a positive association between luxury and commitment. The Kering Group’s 2025 Sustainability Strategy exemplifies a dedication to sustainability and social justice.

How Novus Loyalty Can Help Luxury Brands Build Loyalty Programs?

Novus Loyalty simplifies loyalty management for big brands by offering a suite of features to design engaging brand loyalty programs. It allows you to curate multi-tiered loyalty programs, ensuring exclusive rewards are reserved for the top customers. It creates a great customer experience with premium perks and exclusive discounts.

Novus provides real-time insights through robust tracking and reporting features. It helps brands keep a close check on customer engagement and the effectiveness of their campaigns.

In the world of luxury, making strong connections with customers is like creating a masterpiece, and Novus Loyalty is the secret ingredient that makes it happen. With Novus Loyalty, it’s super easy to make customers feel extra special. You can personalize things for them based on who they are and what they like—it’s like giving them VIP treatment!

Want to offer discounts on their favorite stuff or give them a sneak peek at new collections? No problem! And guess what? Novus loyalty knows exactly what you want. So, when you invest in Novus Loyalty, it’s not just about buying things; it’s about making every customer feel valued and appreciated. It’s like adding a touch of luxury to every interaction and building connections that last. Easy, right?

If you are a luxury or premium brand thinking of mastering the art of building customer loyalty, Novus Loyalty is for you. Book a demo today.