THE LOYALTY PROGRAM ILLUSION: WHY POINTS DON'T EQUAL PREFERENCE

Summary from the TLDR Marketing newsletter

Points-based loyalty programs often give the illusion of success while hiding low engagement and weak brand connection. Most repeat behavior stems from habit or convenience, not true preference. These programs reward actions that would happen anyway, inflate ROI with misleading metrics, and fail to build emotional ties. High breakage, unused rewards, and low redemption rates show customers aren't invested. Enrollment is often automatic, not a sign of interest. To create real loyalty, brands need simpler, more relevant experiences that reflect how people actually choose.