With today’s shoppers expecting relevance, recognition and immediacy as a minimum standard, loyalty programs are undergoing a profound reshaping. 

In partnership with Zeta Global, Inside Retail interviewed some of Australia’s leading loyalty, CRM, CX and data leaders to prepare a report titled Loyalty: Rewritten by the People Who Run It. One overarching theme emerged: The future of loyalty is no longer built on points, perks, or even personalisation alone; it’s built on recognition.

Recognition at the moment it matters. Recognition in the places customers already are. Recognition expressed through meaningful access, earned trust, and simple pathways to identity.

The full report unpacks precisely how Australia’s most respected retailers are making this shift – and why loyalty leaders now see clarity, not generosity, as the strongest growth driver.

Design with customers, not for them

For every organisation interviewed, the starting point was the same: Loyalty isn’t a one-off scheme; it’s a product that evolves.

Adore Beauty, for example, treats loyalty as a continuous product process, making incremental improvements frequently rather than waiting for seasonal campaigns. The Iconic involves customers in testing a simple icon-based currency and access-led perks, while Twoobs designed a values-led program with tier names customers could see themselves in – Eco-Bestie, Rat-Recycler, Tree-Hugger, and Kindred-Creature – along with community events and crystal-clear referral messaging (“$10 for you / $10 for a friend”).

At David Jones, co-design takes the form of removing friction: One app, one barcode, one identity across store and web. For brands not ready for a full app, such as LSKD, a wallet pass places tier and points alongside payment cards, giving store teams instant visibility.

The collective lesson is simple but compelling: When customers help shape the program, risk decreases, iteration accelerates, and value remains aligned with how people actually shop.

Make recognition simple

For retail executives wrestling with channel fragmentation, the report draws a clear conclusion: Unifying identity and benefits behind a single access point is now crucial.

David Jones’ CMO, James Holloman, described the retailer’s app as an omnichannel entry point that merges status, points and a scannable barcode. “After launch, adoption rose quickly across channels,” he said, and members using the app spend more than non-members.

LSKD took a leaner approach but achieved the same effect. “Wallet passes show tier and points for instant recognition in store,” said Jade Cameron, head of community experience. The resulting behaviour shift was immediate: Staff could see when members were nearing rewards, prompting the correct next action, while customers saw progress in real time.

Not only does a single doorway create an improved user experience, but it also standardises identity, reduces mismatches across channels, and creates a reliable, accurate measurement for the business.

Reward participation and belonging – not just transactions

Across the case studies, the definition of “value” extended well beyond spend.

For example, Twoobs rewards community involvement, content engagement and participation in sustainability events. “Loyalty is about that emotional connection… building deep relationships that turn into brand ambassadors,” said cofounder Stef Dadon. “We reward them with values-based incentives too… a guide to thrifting or a guide to going vegan… and when you move between tiers, we donate.”

Rebel Sport rebalanced loyalty toward experiences: Athlete meet-and-greets, youth programs and relevant invites, centrally coordinated so customers receive the right message at the right time. As GM marketing and e-commerce, Rosemary Martin explains, “We’re moving beyond transactional rewards… We’re using experiences like athlete meet-and-greets and youth programs to build a deeper emotional connection and keep our messages relevant to each member.”

LSKD, meanwhile, uses participation itself as the signal – simplifying reviews (with no incentives), and elevating social check-ins. “We don’t see loyalty as having a program… loyalty is showing up for our community,” said Cameron.

These examples prove the benefits of rewarding what strengthens relationship learning and belonging, not just what increases basket size.

Scale loyalty without adding complexity

Some of the most interesting innovations in the report come from brands that simplified rather than added.

Bonds removed tiers and exclusions, made rewards usable everywhere, and let automation run quietly in the background. “We kept the rules simple and let the system do the work, expiry nudges and related triggers run automatically,” said Jaimi Farrey, group senior loyalty and CRM manager.

Officeworks followed a similar path: first unifying identity across POS, e-commerce, and partner programs, then automating replenishment, warranty, and device-age journeys. 

Myer demonstrated how simplicity can scale at an enterprise level: A clear earn rate, $10 rewards available within 24 hours, card-linked partners and forthcoming household pooling. As executive chair Olivia Wirth notes, “Myer One members spend 2.8 times more than non-members,” reinforcing the value of clarity and consistency.

Solve identity first to earn permission

Another of the report’s strong messages is that personalisation – and even measurement – fails without a permissioned, unified identity.

Officeworks’ program stretches across OnePass, Flybuys, point-of-sale and web. “Start with consent and data security, get that wrong and nothing else matters,” said Simon Sharland, head of online and loyalty, adding that it is critical to ensure data is accurate and secure across all customer touchpoints.

David Jones confirms the payoff once identity is unified. “The app is our omnichannel tool for status, points, and scan in-store,” Holloman explained. “Once that single identity was live, behaviour shifted.”

The shift from desire to discovery

Looking forward, the most significant gains for retailers will come from reducing customer effort at the earliest stage: Intent. The Iconic is using AI-assisted search so even vague queries (such as “70s disco outfit”) return relevant results instantly. This boosts loyalty through saving customers time and removing friction.

Myer is expanding the “earning surface” via card-linked partners and tighter integrations with banks and airlines, making everyday earning as simple as everyday spending.

A final word from Zeta Global

As Zeta Global summarises, loyalty programs have evolved from simple ‘earn and burn’ points reward schemes into “powerful centres of customer intent”.  

“Retailers exist to serve customers. So the most effective loyalty program enhancements are designed solely to satisfy customer needs and expectations. The focus now is less on rewarding past behaviour and more on enabling future behaviour through better guidance, relevance and discovery.”

Zeta Global emphasises that customers place a high value on simplicity. “This isn’t about reducing options; it’s about eliminating the friction that slows or complicates their purchase decision-making. It turns out that the most powerful loyalty driver today is not generosity; it’s clarity.”

Not every loyalty team begins at the same point. Some require a clear “first mile” (value exchange and recognition); others have a program in the market and need to update the infrastructure. The report outlines two critical first stages of development: Building the essential (up to six months) and modernising and scaling (six to 18 months). 

• The report Loyalty: Rewritten by the People Who Run It, paints a picture in which loyalty members become integral influencers of the shopping experience – not merely participants. Download your own copy of the full report here and discover five must-do recommendations from the executives interviewed.