H&M has announced a major change to its loyalty program, a move that will significantly impact how its millions of customers engage with the brand. Starting March 17, the 25% birthday discount and 10% new member discount will be discontinued. Instead, the global fashion retailer is introducing a more exclusive, experience-driven loyalty program, focusing on ongoing member benefits rather than one-time discounts.
This decision marks a broader shift in retail loyalty strategies, as brands move away from short-term discounts in favor of deeper, long-term engagement models. H&M believes that instead of rewarding customers once a year, they should feel valued throughout their shopping journey with continuous, personalized benefits.
Why Is H&M Making This Change?
- Sustainability & Profitability: The fast fashion industry is under pressure to become more sustainable. Offering deep discounts across millions of transactions affects profitability and encourages wasteful shopping behavior.
- Changing Consumer Behavior: Today’s shoppers expect more than just discounts—they want exclusive access, personalized experiences, and VIP treatment.
- Competing in the Digital Era: Brands like Zara and ASOS have already refined their digital strategies. By enhancing its loyalty program, H&M hopes to strengthen its customer relationships in the long run.
What’s New in the H&M Loyalty Program?
- Exclusive Member Pricing: Instead of occasional discounts, H&M members will get ongoing special pricing on selected items.
- Early Access to Collections: Members will get the chance to shop limited-edition drops before the general public.
- Personalized Shopping Experiences: Invitations to in-store events, style consultations, and members-only previews.
- Smoother Online & Offline Integration: The new program is designed to work seamlessly between online and physical stores, ensuring customers get the same benefits across platforms.
The Future of Loyalty Programs in Retail
Fashion retailers are increasingly moving beyond transactional loyalty and focusing on experience-driven engagement. While traditional point-based systems still exist, brands like Nike, Adidas, and Sephora have adopted strategies that reward engagement rather than just purchases.
By aligning its loyalty program with modern consumer expectations, H&M is betting that customers will stay loyal for more than just discounts—they’ll stay for the brand experience.
Final Thoughts
H&M’s decision may come as a disappointment for shoppers who relied on birthday discounts, but it highlights an important evolution in the fashion industry. Brands are shifting toward creating lasting customer relationships rather than relying on periodic incentives. If this strategy succeeds, expect more retailers to follow suit in the coming years.
Chintan is the Founder and Editor of Loyalty & Customers.
