Loyalty programs often create an illusion of preference through point accumulation, leading customers to believe they are more loyal to brands than they actually are. However, the effectiveness of these programs is frequently overstated, as consumers may prioritize convenience and value over points, indicating that loyalty is more complex than simple rewards. Businesses should focus on genuine customer engagement rather than relying solely on point systems to foster loyalty.
loyalty-programs ✓
customer-experience ✓
+ brand-preference
consumer-behavior ✓
engagement-strategies ✓