THE ECONOMICS OF THE STREAK: LOYALTY PROGRAMS AND STARS

Summary from the TLDR Marketing newsletter

Loyalty programs use loss aversion and goal gradients to make accumulated points feel like possessions worth protecting. A 100-day streak can become more motivating to preserve than the underlying habit, while being close to a reward or tier encourages extra spending. Programs also benefit from unredeemed points through breakage and collect purchase data. They can reward behaviors customers already value or drive spending and engagement mainly to avoid losing accumulated progress.