View source for Loyalty program

{{short description|Marketing strategy designed to encourage customers to continue to shop at a business}}
{{Redirect|Reward website|cashback programs for online shopping|Cashback website|incentive programs for employees and dealers|Incentive program}}
{{Use dmy dates|date=September 2019}}
[[File:Kundenkarten.JPG|thumb|Various loyalty cards]] 
{{Nudge Theory}}
A '''loyalty program''' or '''rewards program''' is a [[marketing strategy]] designed to encourage [[customer]]s to continue to shop at or use the services of one or more [[business]]es associated with the program.<ref>{{citation
|doi=10.1016/S0167-8116(97)00022-0
|title=Loyalty programs and their impact on repeat-purchase loyalty patterns
|journal=International Journal of Research in Marketing
|volume=14 |issue=5 |pages=473–486 |year=1997
|last1=Sharp |first1=Byron |last2=Sharp |first2=Anne}}</ref>

==Single-company vs. coalition programs==
Loyalty programs may be either:

* Single-brand programs, which may be for all stores owned by a company, such as [[Target Corporation|Target]], or branded stores which may be corporate-owned and franchised to independent business owners, such as [[McDonald's|McDonalds]].
*Single-corporation programs, such as the joint [[Gap Inc.]] program, work at the stores and digital channels of Gap, [[Banana Republic]], [[Old Navy]], and [[Athleta (company)|Athleta]], which are all owned by Gap Inc.
*Coalition loyalty programs, provide benefits to customers of multiple otherwise-unrelated businesses.<ref name=coalition>{{cite web |title=Coalition loyalty programs: how to create an engaging open-loop loyalty program? |url=https://www.openloyalty.io/insider/coalition-loyalty-programs#:~:text=A%20coalition%20loyalty%20program%20is,offer%20a%20shared%20loyalty%20initiative. |website=www.openloyalty.io |access-date=3 July 2024}}</ref> Examples include [[Rakuten Rewards]] which, in the U.S. offers cashback at more than 3,500 stores<ref>{{cite web |title=Earn Cash Back |url=https://www.rakuten.com/all-brands |website=Rakuten |access-date=3 July 2024 |language=en}}</ref> and [[Air Miles]] which awards points for purchases from multiple merchants in each market it serves (Canada, The Netherlands, Bahrain, Qatar, and the UAE).<ref name=amme>{{cite web |title=Air Miles Middle East |url=https://www.airmilesme.com |website=www.airmilesme.com |access-date=3 July 2024}}</ref>
**Shopping center programs may also be based on a single or chain of shopping centers, such as the [[Tanger Outlets]] loyalty programs that can be used at merchants located at its outlet malls.
**Downtown [[Olympia, Washington]], launched a coalition loyalty program in 2021 for merchants in its downtown shopping district.<ref>{{cite news |title=Do downtown shopping districts need their own loyalty programs? - RetailWire |url=https://retailwire.com/discussion/do-downtown-shopping-districts-need-their-own-loyalty-programs/ |access-date=3 July 2024 |date=19 August 2021}}</ref>

In 2020 [[McKinsey]] spoke of loyalty program "ecosystems".<ref>{{cite web |last1=Boudet |first1=Julien |title=Preparing for loyalty's next frontier: Ecosystems {{!}} McKinsey |url=https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/preparing-for-loyaltys-next-frontier-ecosystems |website=McKinsey |access-date=3 July 2024 |date=5 March 2020}}</ref>

==Features==
===How customers provide their account numbers=== 
====Physical loyalty cards====
A loyalty program typically involves the operator of a particular program setting up an account for a customer of a business associated with the scheme, and then issue to the customer a '''loyalty card''' (variously called [[Cashback reward program|rewards card]], [[Cashback reward program|points card]], advantage card, club card, or some other name) which may be a [[plastic card|plastic]] or paper card, visually similar to a [[credit card]], that identifies the cardholder as a participant in the program. Cards may have a [[barcode]] or [[magstripe]] to more easily allow for scanning, although some are [[chip card]]s or [[proximity card]]s.<ref>{{Cite web |title=What is a Loyalty Program: Benefits, Types |url=https://sendpulse.com/support/glossary/loyalty-program |access-date=2024-05-30 |website=SendPulse |language=en}}</ref> U.S. supermarkets often issue two copies of the card: one credit-card sized and one that fits on a keychain, in addition to providing access to the card via a mobile app, website.

====Digital loyalty cards====
As of 2024, most programs in the United States offer a digital version of the loyalty card, accessed via a mobile app, and often customers can scan a QR or bar code from the app at the physical point of sale. Some programs now offer digital cards only or only exceptionally, such as [[Marks and Spencer]]'s "Sparks" program in the [[United Kingdom|UK]] launched in 2020 which no longer issues physical cards except upon special request.<ref name="msuk">{{Cite news |last=Wood |first=Zoe |date=3 July 2024 |title=Sparks fly as M&S says no to a plastic loyalty card |url=https://www.theguardian.com/money/article/2024/jul/03/sparks-fly-as-ms-says-no-to-a-plastic-loyalty-card |access-date=3 July 2024 |work=The Guardian}}</ref> American Airlines no longer sends membership kits to new members of its frequent flyer program.<ref>{{Cite news |last=Leff |first=Gary |date=24 September 2020 |title=No More American Airlines Elite Membership Cards, But You Can Still Call For Employee Recognition Certs |url=https://viewfromthewing.com/no-more-american-airlines-elite-membership-cards-but-you-can-still-call-for-employee-recognition-certs/ |access-date=3 July 2024 |work=View from the Wing}}{{self-published inline|date=July 2024}}</ref>

Encouraging or forcing customers to use a mobile app to present their loyalty account number, although criticized for being unfriendly to people without smartphones including many elderly people,<ref name=msuk/> benefits the merchant in a number of ways. It lets them present special offers to the customer (or even push them via [[push notifications]]), tailor customer experience to the individual consumer, and understand customer behavior better, including their purchasing amounts and patterns.<ref>{{Cite web |last=Mottl |first=Judy |date=3 August 2023 |title=Tanger Outlets takes digital-first strategy in loyalty program revamp |url=https://www.retailcustomerexperience.com/articles/tanger-outlets-takes-digital-first-strategy-in-loyalty-program-revamp/ |access-date=3 July 2024 |website=Retail Customer Experience |language=en}}</ref>

====Phone number and other methods====
At a physical point of sale, presenting a physical or digital card is not necessary at many U.S. merchants, if the customer enters the phone number associated with the account on a terminal or tells it to a cashier who enters it into the register. When purchasing online, customers usually must log in to the account on the merchant's website. However, when purchasing airline tickets from online travel agencies, customers can usually enter their airline loyalty number into the agency website and the agency will pass it onto the airline.

===Points===
Programs that feature points grant customers a certain number of points for each purchase, in the US often per $1 or $10 increment of spend. Once they have enough points, clients can redeem them for either:
*merchandise or services free of charge
*discounts on merchandise or services
*gift cards, credit vouchers, etc. to spend with the merchant
*"cashback", either:
**money that the program transfers to the customer's account or 
**a paper check that the program mails to the customer

===Tiers===
Programs with tiers define levels (such as silver, gold, and platinum levels) that customers are upgraded to when they spend enough with the merchant(s), usually over a certain period of time such as a year. For example, Sephora gives 1 point for $1 spent. Once customers earn a specific number of points, they can enter a new level with higher discounts and exclusive products.

===Membership fees===
In subscription-based programs, customers pay a fee to enjoy the program's benefits, for example [[Barnes and Noble]] bookstores charge members about 40 [[U.S. dollars]] per year (as of mid-2024) for its "Premium Membership and Rewards" program, which gives members a 10% discount off most merchandise. There is also a free tier which does not offer such discounts but does allow members to collect virtual "stamps" (i.e. loyalty points).<ref>{{cite web |title=Premium Membership and Rewards |url=https://www.barnesandnoble.com/membership/ |website=Barnes and Noble |access-date=3 July 2024}}</ref>

==Types of rewards==
Depending on the program, rewards may take the form of:
*merchandise or services free of charge
*discounts on merchandise or services
*gift cards, credit vouchers, etc. to spend with the merchant 
*cashback

In addition to rewards, loyalty cards may also be used to identify consumers for benefits and other services, e.g.:
*when pharmacies dispense [[medical prescription|prescriptions]]
*for access to an [[airport lounge]] (using a [[frequent-flyer program|frequent-flyer]] card)
*when customers presented checks for payment at a point-of sale

===Cashback===
{{Main|Cashback website}}
Programs with cashback features give customers a portion of the money that they have spent with a business (usually a defined percent which may be higher than usual during promotions). The "cash back" is rarely actually cash money, but rather takes the form of a transfer of the "cashback" amount to the customer's bank account.

Examples in the U.S. include [[Rakuten Rewards]], a coalition reward program, and many banks that give their clients cash back for using their debit cards to pay for various products and services.

==Channels==
Depending on the program, ways that consumers may access their loyalty account (account number, promotions, other information) may include:
*Desktop, mobile, and/or responsive versions of the website(s) for the program and/or of participating merchant(s)
*Mobile apps for the program or participating merchant(s)
*At dedicated kiosks, such as in casinos<ref>{{cite news |title=Global games and FinTech supplier Everi acquires casino kiosk firm Atrient for US$40 million |url=https://www.asgam.com/index.php/2019/03/13/global-games-and-fintech-supplier-everi-acquires-casino-kiosk-firm-atrient-for-us40-million/ |access-date=3 July 2024 |work=IAG |date=13 March 2019}}</ref>
*Traditional methods such as:
**Physical membership cards
**Paper-based mailings of account statements, promotions, and other information

===Mobile apps and websites===
There has been a move away from traditional magnetic card, stamp, or punchcard based schemes to online and mobile online loyalty programs. While these schemes vary, the common element is a push toward eradication of a traditional card, in favour of an electronic equivalent. The choice of medium is often a [[QR code]]. Some prominent examples are Austrian based mobile-pocket established in 2009, the US-based Punchd (discontinued from June 2013,<ref>{{Cite web|url=http://www.fiercemobilecontent.com/story/google-kills-punchd-mobile-loyalty-card-app/2012-12-17 |archive-url=https://web.archive.org/web/20121231021842/http://www.fiercemobilecontent.com/story/google-kills-punchd-mobile-loyalty-card-app/2012-12-17 |url-status=usurped |archive-date=31 December 2012 |date=17 December 2012 |title=Google Kills Punchd Mobile Loyalty Card App |website= fiercemobilecontent.com}}</ref>), which became part of [[Google]] in 2011.<ref>{{Cite news| url=https://venturebeat.com/2011/07/12/googles-punchd-acquisition-to-push-mobile-wallet-uptake|date=12 July 2011|work=VentureBeat|title=Google's Punchd acquisition to push mobile wallet uptake}}</ref> and an Australian-based loyalty card application called Stamp Me<ref>{{Cite web| url=http://qsrmedia.com.au/marketingadvertising/more-news/stamp-me-app-replaces-loyalty-cards|date=26 November 2012|title=Stamp Me app replaces loyalty cards|website=qsrmedia.com.au}}</ref> which incorporates [[iBeacon]] technology. Others, like Loopy Loyalty (HK), Loyalli (UK), [[Perka]] (US), and Whisqr Loyalty (CA), have offered similar programs.<ref>{{Cite news| url=https://www.theguardian.com/money/2013/apr/12/10-best-money-saving-apps|date=12 April 2013|title=10 Best Money Saving Apps | location=London|work=The Guardian|first1=Patrick|last1=Collinson|first2=Emma|last2=Lunn}}</ref> [[Passbook (application)|Passbook by Apple]] is the first attempt to standardize the format of mobile loyalty cards.

===Offline with mobile device===
With the introduction of [[host card emulation]] (HCE) and [[near field communication]] (NFC) technology for mobile applications, traditional contactless smart cards for prepaid and loyalty programs are emulated in a smartphone. [[Google Wallet]] adopted these technologies for mobile off-line payment applications.

The major advantage of off-line over the online system is that the user's smartphone does not have to be online, and the transaction is fast. In addition, multiple emulated cards can be stored in a smartphone to support multi-merchant loyalty programs. Consequently, the user does not need to carry many physical cards anymore.<ref>{{cite web |url=https://www.cbinsights.com/company/plink
|title=Plink}}</ref><ref>{{cite web
|url=https://www.ventureradar.com/similar/Drop%20Loyalty/8fae528a-3d48-4dc5-8008-81830c0ff41d
|title=Similar companies}}</ref>

==Industries==
Today, such loyalty programs cover most types of commerce, each having varying features and rewards schemes, and range from programs of a single-location business to large chains or membership in a coalition loyalty program.  Industries include:<ref>{{cite web |title=101 of the best loyalty programs |url=https://whitelabel-loyalty.com/blog/loyalty-industry-insight/101-of-the-best-loyalty-programs |website=White Label Loyalty |access-date=3 July 2024 |language=en |date=25 October 2023}}</ref>

*Retail: Supermarkets, department stores, clothing stores, beauty stores and other specialty shops
*Travel and Hospitality: Airlines, passenger railways, hotels, car rental and carshare companies
*Food and Beverage: Restaurants, coffee shops, fast-food chains
*Financial Services: Banks, credit card companies
*Telecommunications: Mobile service providers, internet service providers
*Entertainment: Cinemas, streaming services, theme parks, casinos
*E-commerce sites/apps and online marketplaces
*Fitness and Wellness: Gyms, fitness studios, spas etc.
*Automotive: Car dealerships and service centers

The market approach has shifted from product-centric to a customer-centric one due to a highly competitive market and a wide array of services offered to customers, therefore, it's important that marketing strategies prioritize growing a sustainable business and increasing customer satisfaction.<ref>{{Cite journal |last1=Fook |first1=Andy Chin Woon |last2=Dastane |first2=Omkar |date=June 2021 |title=Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis |url=http://journals.sagepub.com/doi/10.1177/22786821211000182 |journal=Jindal Journal of Business Research |language=en |volume=10 |issue=1 |pages=7–32 |doi=10.1177/22786821211000182 |s2cid=234771932 |issn=2278-6821|url-access=subscription }}</ref>

===Casinos===
Almost all major U.S. casino chains also have loyalty cards, which offer members tier credits, reward credits, [[Comps (casino)|comps]], and other perks based on card members' "[[Comps (casino)#Calculation|theo]]" from gambling, various demographic data, and spend patterns on various purchases at the casino, within the casino network, and with the casino's partners.<ref>{{cite journal|website=Limn|title=Issue 2 Crowds and Clouds » THE TOUCH-POINT COLLECTIVE: CROWD CONTOURING ON THE CASINO FLOOR|author=Dow, Natasha|url=https://limn.it/articles/the-touch-point-collective-crowd-contouring-on-the-casino-floor/|date=26 January 2012|issue=2 |pages=14 }}</ref><ref>{{cite web|website=Lifehacker|url=https://lifehacker.com/how-casinos-use-rewards-programs-to-track-everything-yo-1830864482|title=How Casinos Use Rewards Programs to Track Everything You Do|author=Long, Emily|date=6 December 2018}}</ref> Examples of such programs include [[Caesars Entertainment (2020)|Caesars]] Rewards<ref>{{cite web|url=https://www.caesars.com/total-rewards|website=Caesars.com|title=Caesars Rewards}}</ref> (formerly called Total Rewards<ref>{{cite web|url=https://www.lasvegashowto.com/total-rewards|website=Las Vegas How To|title=Total Rewards Card}}</ref>) and [[MGM Resorts International]]'s Mlife.<ref>{{cite web|website=MGM Resorts|title=Mlife|url=https://www.mgmresorts.com/en/mlife-rewards-program.html}}</ref>

===Coffee shops===
===="Disloyalty" cards====
{{As of|2011}}, some independent coffee shops in Boston, Toronto and London has set up experimental "disloyalty card" programs, which rewarded customers for visiting a variety of coffee shops.<ref>{{Cite news |last=Annear |first=Steve |date=15 December 2011 |title=Local coffee shops start 'Disloyalty Card' campaign |url=http://www.metro.us/boston/local/article/1051303--local-coffee-shops-start-disloyalty-card-campaign |url-status=dead |archive-url=https://web.archive.org/web/20120114152241/http://www.metro.us/boston/local/article/1051303--local-coffee-shops-start-disloyalty-card-campaign |archive-date=14 January 2012 |work=Metro |location=Boston}}</ref><ref>{{Cite news |last=Bain |first=Jennifer |date=12 April 2010 |title=Disloyalty has its privileges |url=https://www.thestar.com/living/food/article/794054--disloyalty-has-its-privileges |archive-url=https://web.archive.org/web/20100417002131/https://www.thestar.com/living/food/article/794054--disloyalty-has-its-privileges |archive-date=2010-04-17 |work=[[Toronto Star]]}}</ref>

==Benefits to merchants==
Loyalty programs' most important benefit to merchants is that they generate data, which bring more repeat business and therefore increase sales.<ref name="Leveraging Loyalty Programs Using C">{{cite journal |last1=Taylor |first1=Wayne |last2=Hollenbeck |first2=Brett |title=Leveraging Loyalty Programs Using Competitor Based Targeting |journal=Quantitative Marketing and Economics |date=2021 |volume=19 |issue=3–4 |pages=417–455 |doi=10.1007/s11129-021-09237-y |ssrn=3353432 |s2cid=108298338 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3353432}}</ref>

Application forms for cards usually entail agreements by the store concerning customer privacy, typically non-disclosure (by the store) of non-aggregate data about customers. The store uses aggregate data internally (and sometimes externally) as part of its [[marketing research]]. Over time the data can reveal, for example, a given customer's favorite brand of beer, or whether they are a vegetarian.

As of the mid-2020s, loyalty program trends include:<ref>{{cite news |last1=Clark |first1=Scott |title=The Evolution of Customer Loyalty Programs in the Digital Age |url=https://www.cmswire.com/customer-experience/the-evolution-of-customer-loyalty-programs-in-an-always-on-world/ |access-date=3 July 2024 |work=CMSWire |date=9 May 2024 |language=en}}</ref>
*the integration of AI and data analytics into loyalty platforms in order to personalize customer experiences,
*focusing on emotional connections, and 
*offering personalized rewards that resonate with individual consumer preferences
*omnichannel experience to drive more interaction i.e. access across multiple physical and digital touchpoints such as in-store, via mail, e-mail, mobile apps, push notifications from the app or via SMS, websites, etc.

Loyalty programs are a means of implementing a type of what economists call a [[two-part tariff]].

===Asia===
* '''Japan''': see [[:ja:共通ポイント]] and [[:ja:ポイントプログラム#日本における歴史]]. In Japan, non credit card multi-brand points who awarded in addition to each store's own points are becoming more common. Most Japanese people say Big 4 of multi-brand points are V-POINT([[:ja:Vポイント|ja]])(SMCC(affiliated [[Sumitomo Mitsui Banking Corporation|SMBC Group]]) and [[Culture Convenience Club|CCC]])(merged T-POINT([[:ja:Tポイント|ja]])(CCC) on 22th Aplil 2024), Ponta([[:ja:Ponta|ja]])(affiliated [[Mitsubishi Corporation]]), [[Rakuten]] point([[:ja:楽天ポイント|ja]]), d Point Club([[:ja:dポイントクラブ|ja]])([[NTT Docomo]]).<ref>[https://www.tv-tokyo.co.jp/plus/smp/entertainment/entry/2020/021484.html 4大共通ポイントカードは”衝撃の進化”を遂げていた...その特長と賢い使い方...] テレ東プラス（2021年3月11日閲覧）</ref> Other famous point bland are [[Waon|WAON]]([[Aeon (company)|AEON]] Group([[:ja:イオングループ|ja]]), JRE POINT([[:ja:JRE POINT|ja]])([[East Japan Railway Company|JR East]]), PayPay([[:ja:PayPay|ja]]) point([[SoftBank Group]]'s [[QR code payment]]), [[Nanaco]].
* '''Hong Kong''': [[Octopus Cards Limited|Octopus Rewards]],<ref>{{Cite web|url=https://www.octopus.com.hk/en/consumer/rewards/about/index.html|title=About Octopus Rewards|website=Octopus Cards Limited|language=en-hk|access-date=2018-03-13|archive-date=5 January 2019|archive-url=https://web.archive.org/web/20190105130802/http://www.octopus.com.hk/en/consumer/rewards/about/index.html|url-status=dead}}</ref> [[MTR Corporation]].<ref>MTR Club for regular customers of [[MTR|transport network]] {{Cite web
      |url=https://www.mtr.com.hk/en/customer/club/index.php
      |title=MTR Club
      |website=MTR Corporation
      |language=en
      |access-date=2018-03-13
      |archive-date=3 August 2020
      |archive-url=https://web.archive.org/web/20200803111349/https://www.mtr.com.hk/en/customer/club/index.php
      |url-status=dead
      }}</ref> Different chain stores under common ownership often share the same loyalty program, such as [[A.S. Watson Group]]'s ''MoneyBack'', which can be used at [[Parknshop]], [[Watsons]], and Fortress stores, as well as the corporation's retail partners.<ref>{{Cite news|url=http://www.aswatson.com/moneyback-celebrates-its-10th-anniversary/|title=MoneyBack Celebrates its 10th Anniversary – A.S. Watson Group {{!}} A member of CK Hutchison Holdings|date=27 June 2017|work=A.S. Watson Group|access-date=2018-03-13|language=en-US}}</ref> [[Hong Kong Telecom|HKT]]'s The club also offers a similar loyalty program.<ref>{{Cite web|url=https://www.scmp.com/article/1681846/club-rewards-hkt-premier-customers-their-loyalty|title=The Club rewards HKT Premier customers for their loyalty|date=2015-01-22|website=South China Morning Post|language=en|access-date=2020-02-03}}</ref> Flag airline carrier [[Cathay Pacific]] operates [[Asia Miles]], a loyalty and frequent-flyer program.<ref>{{Cite web|url=https://www.asiamiles.com/en/media-centre/press-release/article.html/Even_More_Rewarding_Experience_for_Asia_Miles_Members|title=Even More Rewarding Experience for Asia Miles Members|website=www.asiamiles.com|language=en-hk|access-date=2020-02-03|archive-date=26 January 2021|archive-url=https://web.archive.org/web/20210126122257/https://www.asiamiles.com/en/media-centre/press-release/article.html/Even_More_Rewarding_Experience_for_Asia_Miles_Members|url-status=dead}}</ref>
* '''India''': PAYBACK India is [[India]]'s largest coalition loyalty program.<ref name=busstand>{{cite news
   |title=PAYBACK India's bet
   |url=http://www.business-standard.com/india/news/paybacks-india-bet/443284
   |access-date=28 July 2011 |newspaper=Business Standard
   |date=20 July 2011}}</ref><ref name="imint">{{Cite news |title=i-mint and PAYBACK team up in India |url=http://www.colloquy.com/breaking_view.asp?xd=7353|access-date=18 June 2010 |newspaper=Colloquy|date=17 June 2010 |url-status=dead|archive-url=https://web.archive.org/web/20100813141426/http://www.colloquy.com/breaking_view.asp?xd=7353|archive-date=13 August 2010}}</ref> German loyalty program operator [[Loyalty Partner]] took a controlling interest in i-mint in June 2010<ref name=imint/> and renamed the program PAYBACK India in July 2011.<ref name=busstand/> BPCL's PetroBonus fuel card program has 2 million members.<ref>{{cite news|url=http://www.hindu.com/2009/10/15/stories/2009101555751600.htm|archive-url=https://web.archive.org/web/20091019042951/http://www.hindu.com/2009/10/15/stories/2009101555751600.htm|url-status=dead|archive-date=19 October 2009|title=BPCL celebrates PetroBonus 10th anniversary|date=15 October 2009|access-date=9 March 2010|newspaper=[[The Hindu]]|location=Chennai, India}}</ref> [[Indian Oil]]'s fleet card program XTRAPOWER and retail program XTRAREWARDS claim a combined customer base of 3 million.<ref>{{cite web|url=http://www.iocxtrapower.com/award2009.asp |archive-url=https://web.archive.org/web/20090802161301/http://www.iocxtrapower.com/award2009.asp |url-status=dead |archive-date=2 August 2009 |title=Indian Oil does a hat-trick at the 3rd loyalty summit |website=XTRAPOWER |access-date=9 March 2010 }}</ref>
* '''Iran''': The first [[Iran]]ian loyalty program launched in 1996.<ref>{{cite web|url=http://www.perfect-idea.com|title=Home – گروه کارتهای اعتباری ایران|access-date=22 November 2016}}</ref> East Credit Card Group Kish launched its loyalty program in 2005.<ref>{{cite web|url=http://www.eaccg.com|title=گروه کارتهای اعتباری ایران|access-date=22 November 2016}}</ref>
* '''Malaysia''': [[Genting Highlands]] Resort loyalty card, WorldCard,<ref>{{cite web |title=Programme Partners |url=https://www.rwgenting.com/gentingrewards/programme-partners/ |website=Resort World Genting |publisher=Genting Malaysia Berhad |access-date=3 December 2019}}</ref> is valid in three countries: Malaysia, Singapore and Hong Kong. 
* '''Philippines''':<ref>{{cite web|website=Primer|title=List of Discount and Reward Cards in the Philippines|url=http://primer.com.ph/tips-guides/2016/09/23/list-of-discount-and-reward-cards-in-the-philippines/}}</ref> [[SM Supermalls]] and [[BDO Unibank]] offer rewards cards which are accepted by [[The SM Store]], [[SM Supermarket]], [[SM Hypermarket]], [[ACE Hardware]] and [[Watsons Pharmacy]].<ref>{{cite web|website=SM Advantage|title=FAQs|url=https://www.smadvantage.com/faqs|archive-url=https://web.archive.org/web/20151127035450/http://smadvantage.com/faqs|url-status=dead|archive-date=2015-11-27}}</ref><ref>{{cite web|website=BDO|title=FAQS: Rewards|date=28 July 2014|url=https://www.bdo.com.ph/faqs/rewards}}</ref> [[Robinsons Malls]] also offers a loyalty program through the Go Rewards app (formerly known as the Robinsons Rewards card).<ref>{{cite web|title=Go Rewards Card|url=https://www.gorewards.com.ph/card|website=Go Rewards}}</ref><ref>{{Cite web|title=Robinsons Rewards Is Now GoRewards|url=https://www.gorewards.com.ph/stories/keep-going-for-bigger-savings-and-better-deals-with-go-rewards|access-date=2021-06-14|website=www.gorewards.com.ph}}</ref> Others are [[Jollibee]], (HappyPlus card),<ref>{{cite web|website=HappyPlus|title=FAQs|url=http://happyplus.com.ph/faqs/}}</ref> Grab Rewards,<ref>{{cite web | url=https://www.grab.com/ph/rewards/ | title=GrabRewards - Grab Loyalty Programme &#124; Grab PH }}</ref> and [[Mercury Drug]]'s Suki Card.<ref>{{cite web|website=Mercury Drug|title=FAQs|url=https://www.mercurydrug.com/suki-card.html}}</ref>
* '''Singapore''': Loyalty programs in Singapore include GrabRewards<ref>{{Cite web|title=GrabRewards – Grab Loyalty Programme|url=https://www.grab.com/sg/rewards/|access-date=2021-01-01|website=Grab SG|language=en-US}}</ref> by [[Grab (company)|Grab]], SAFRA<ref>{{Cite web|title=SAFRA home page|url=https://www.safra.sg/|access-date=2021-01-01|website=SAFRA|language=en}}</ref> and Plus!<ref>{{Cite web|title=Plus! home page|url=https://plus.com.sg/|access-date=2021-01-01|website=plus.com.sg|language=en}}</ref> from [[National Trades Union Congress|NTUC]].

===Europe===
* '''Austria''': The two largest loyalty programs in [[Austria]] are Payback and mo. JÖ was fully launched in 2019.
* '''Finland''': The two major retail coalitions with loyalty programs are the [[S-Group]] with their ''S-Etukortti'' card<ref>{{cite news
   |title=Etukortit Suomessa
   |url=http://www.hs.fi/talous/Asiantuntijat+Etukorttien+ker%C3%A4%C3%A4m%C3%A4+tieto+suomalaisista+on+hy%C3%B6dynt%C3%A4m%C3%A4t%C3%B6n+kultakaivos/a1411585767488
   |archive-url=https://wayback.archive-it.org/all/20171018170618/https://www.hs.fi/talous/art-2000002764112.html
   |url-status=dead
   |archive-date=18 October 2017
   |newspaper=Helsingin Sanomat |access-date=26 September 2014 |date=25 September 2014}}</ref>) and [[Kesko]] with ''K-Plussa'' (67%).
* '''Georgia''': [[Georgia (country)|Georgia]]'s biggest loyalty card program has been run by Universal Card Corporation since 2010 via [[Unicard|UNICARD]].
* '''Germany''': The largest loyalty program is Payback, launched in 2000.<ref>{{cite web
   |title=PAYBACK: Facts & Figures
   |url=http://www.payback.net/pl/en/about-payback/facts-figures
   |access-date=2 November 2016 |archive-url=https://web.archive.org/web/20161104110632/http://www.payback.net/pl/en/about-payback/facts-figures/|archive-date=4 November 2016|url-status=dead}}</ref><ref name=Germ2007>{{cite web|publisher=Loyalty Partner |title=Studien |url=http://www.loyaltypartner.com/presse/studien/#c390 |archive-url=https://web.archive.org/web/20080214165523/http://www.loyaltypartner.com/presse/studien/ |url-status=dead |archive-date=14 February 2008 |access-date=15 May 2008 }}</ref> {{interlanguage link|HappyDigits|de|HappyDigits}} and the Shell ClubSmart program are next in size.<ref name=Germ2007/> {{interlanguage link|DeutschlandCard|de|DeutschlandCard}} was launched by [[Arvato]] in 2008. HappyDigits was disbanded by 2010.
* '''Hungary''': SuperShop and Multipoint are their main loyalty programs.
* '''Italy''': After the exit of Nectar from the market in 2015, Payback is the most popular loyalty program.<ref>{{Cite web |last=Focus |first=Global Convenience Store |date=2021-02-01 |title=Principles, Promises and Challenges of Coalition Loyalty {{!}} Global C Store Focus |url=https://www.globalconveniencestorefocus.co.uk/features/principles-promises-and-challenges-of-coalition-loyalty/ |access-date=2024-01-22 |website=www.globalconveniencestorefocus.co.uk |language=en-GB}}</ref> Supermarkets Esselunga, Coop and Il Gigante also have loyalty programs.
* '''Latvia''': One of the largest loyalty programs in Latvia which is working as an operator for many merchants is Pins.{{Citation needed|date=July 2018}} Another is Walmoo
* '''Norway''': The largest Norwegian loyalty program is [[:no:Trumf (lojalitetskort)|Trumf]]. Trumf is a "brick and mortar" loyalty program owned by [[NorgesGruppen]], a grocery wholesaling group in Norway.<ref>{{Cite journal|last=Nesset, Erik |display-authors=etal |title=Building chain loyalty in grocery retailing by means of loyalty programs–A study of 'the Norwegian case'.|journal=Journal of Retailing and Consumer Services}}</ref> KickBack.no is one of the largest online loyalty programs and cashback sites in Norway. KickBack.no is owned by [[Schibsted|Schibsted Media Group]].
* '''Republic of Ireland''': [[Superquinn]] introduced its SuperClub loyalty card in 1993, the prototype for Europe. However, loyalty cards did not expand until 1997, when [[Tesco Ireland]] introduced its Clubcard scheme, shortly after its purchase of Power Supermarkets. [[SuperValu (Ireland)|SuperValu]] introduced their own loyalty club called Real Rewards. Others were: 
** During the late 1990s—[[Esso]] petrol program were: Tiger Miles, [[Maxol]], [[Texaco]] and [[Statoil]]. Increasing oil prices ended these in 2005.
** [[Game (retailer)|Game]], a major computer game and hardware retailer, which merged with [[Electronics Boutique]]'s programme.
** Rewards From Us To You, a hotel loyalty program
* '''Russia''': MALINA, "the largest multicorporate customer loyalty program in Russia,"<ref>{{cite web
      |title=MALINA program increases customer loyalty with Oracle
      |url=https://jet.su/en/press/news/12732
      |access-date=30 August 2020
      |archive-date=26 September 2020
      |archive-url=https://web.archive.org/web/20200926025628/https://jet.su/en/press/news/12732/
      |url-status=dead
      }}</ref> was launched in 2006 by Loyalty Partners Vostok.<ref>{{cite web
|title=The loyalty program "MALINA"
|url=https://rapporto.ru/en/services/mobile-advertising/programma_malina}}</ref><ref>{{cite web
   |title=Raiffeisenbank launches Malina loyalty credit card
   |url=https://thewisemarketer.com/headlines/raiffeisenbank-launches-malina-loyalty-credit-card-2
   |date=October 23, 2006}}</ref> Another is [[Mnogo.ru]].
* '''Switzerland''': Loyalty programs are popular in [[Switzerland]], with the two main supermarket chains, [[Migros]] and [[Coop (Switzerland)|Coop]] prominent.  The M-Cumulus card can be used at the Migros supermarkets, [[Ex Libris (bookshop)|Ex Libris]], SportXX, and other retailers. The Coop Supercard earns points on purchases at Coop and a variety of other associated stores. Other stores such as Interio, a furniture retailer, are also joining the market with loyalty cards and store-based incentivized credit cards.  The only coalition loyalty scheme in Switzerland is Bonus Card with a network of over 300 independent retail partners.<ref>[http://www.finaccord.com/uk/tables-of-contents_html/global-coalition-loyalty-programs.htm Finaccord List of Global Loyalty Programs.] {{Webarchive|url=https://web.archive.org/web/20181122143910/http://www.finaccord.com/uk/tables-of-contents_html/global-coalition-loyalty-programs.htm |date=22 November 2018 }} Retrieved 1 March 2016</ref> In recent years, online loyalty programs have also started to target the Swiss. First to make an offering in Switzerland was German-based Webmiles.  Claiming to be Switzerland's first online bonus program, Bonuspoints was launched in early 2008 and offers incentives for shopping at 70 different online stores.
* '''Turkey''': [[Pegasus Airlines]] has a loyalty program called Pegasus Plus which gives rewards for every flight. Passengers can spend reward points as a discount without waiting to cover a full flight. [[Turkish Airlines]] has a loyalty program called Miles&Smiles.
* '''United Kingdom''': ''Passcard'' (later renamed ''Passkey'') was in the early 1980s.<ref>{{Cite news
   |newspaper=The Herald |date=29 August 1989 |title=Reward for young Scots businessman
   |url=https://www.heraldscotland.com/news/12002112.reward-for-young-scots-businessman
   |access-date=19 July 2020}}</ref> [[Sainsbury's]] ''[[Homebase]] Spend and Save Card'' was another early 1980s loyalty card.<ref>{{cite news |url=https://www.theguardian.com/money/blog/2012/jul/26/how-loyal-are-you-to-your-reward-cards
|title=How loyal to your reward cards are you? |first=Rebecca |last=Smithers |date=26 July 2012 |access-date=22 November 2016 |newspaper=The Guardian}}</ref> A later program, [[Tesco]]'s ClubCard, was criticized for not offering value for money.<ref>{{cite news
   |newspaper=The Independent |date=13 August 2005
   |title=A trip to Alton Towers? That'll be £2,000, please
   |url=https://www.independent.co.uk/money/loans-credit/a-trip-to-alton-towers-thatll-be-1632000-please-502715.html}}</ref> ''[[The Economist]]'' suggested that the real benefit of loyalty cards to UK outlets is the massive [[marketing research]] database potential they offer.<ref>{{cite magazine |magazine=[[The Economist]]
   |title=How Tesco is changing Britain
   |date=4 August 2005 |access-date=25 July 2007
   |url=http://www.economist.com/world/europe/displayStory.cfm?story_id=4247169}}</ref> [[Morrisons]] is another program.<ref>{{Cite web
|url=http://www.morrisons.co.uk/Whats-New/Dont-miss-out-on-your-miles
|archive-url=https://web.archive.org/web/20121213040530/http://www.morrisons.co.uk/Whats-New/Dont-miss-out-on-your-miles
|url-status=dead |archive-date=2012-12-13|title=Morrisons Miles – Morrisons}}</ref> Many stores have kiosks that, with the cards, print vouchers that can be used at the till.<br />[[Safeway plc|Safeway's]] ABC Card was discontinued in 2000.<ref>{{cite news|title=Safeway scraps loyalty card|date=5 May 2000|work=BBC News|access-date=25 July 2007|url=https://news.bbc.co.uk/2/hi/business/735835.stm}}</ref> Maximiles<ref>{{cite web|title=Maximiles acquires ipoints to create Europe's no. 1 online coalition loyalty company
|date=19 July 2006 |publisher=E-consultancy |access-date=19 July 2006
|url=http://www.e-consultancy.com/news-blog/361397/maximiles-acquires-ipoints-to-create-europe-s-no-1-online-coalition-loyalty-company.html?keywords=loyalty
|archive-url=https://web.archive.org/web/20061020181600/http://www.e-consultancy.com/news-blog/361397/maximiles-acquires-ipoints-to-create-europe-s-no-1-online-coalition-loyalty-company.html?keywords=loyalty
|archive-date=20 October 2006 |url-status=dead}}</ref> is an online coalition program.<ref name=maxi>{{cite web|title=Brochure|access-date=17 August 2010|url=http://www.maximilesgroup.com/images/mxmpdf.pdf|publisher=Maximiles Group|url-status=dead|archive-url=https://web.archive.org/web/20100215170810/http://www.maximilesgroup.com/images/mxmpdf.pdf|archive-date=15 February 2010}}</ref><br />Formerly operated by [[British Airways]], [[Air Miles|Airmiles]] was rebranded in 2011 from Airmiles to Avios, with changes that caused members to pay taxes and fees on flights they used for redemption.<ref>{{Cite web|title = Avios rebrand causes backlash for AirMiles company|url = http://www.marketingweek.com/2011/09/02/avios-rebrand-causes-backlash-for-airmiles-company/|website = Marketing Week|access-date = 10 December 2015|first = Lara|last = O'Reilly| date=2 September 2011 }}</ref> Co-operative Membership: the Co-op Group offers a 2% (previously 5%) refund to members on Co-op branded products with 2% also going to the cardholder's nominated charity. This is only available in Co-op Group stores.  It replaced the dividend benefit previously used. Other Co-op chains continue with the dividend scheme, e.g. Midcounties Co-operative. Many of these accept other Co-operative loyalty cards but generally without the same benefits. For instance Midcounties Co-operative accept Co-operative Group cards but there is no charity donation or cardholder refund.

===The Americas===
*'''Brazil'''
**Dotz is a coalition loyalty program in Brazil with over 50 million members<ref>{{cite news |title=#368: Coalition Loyalty - Dotz Brazil Celebrates 50 Million Members |url=https://thewisemarketer.com/368-coalition-loyalty-dotz-brazil-celebrates-50-million-members/ |access-date=3 July 2024 |work=The Wise Marketer |date=19 April 2023}}</ref>
* '''Canada'''
**[[Aeroplan]], a coalition program centered on [[Air Canada]] with Apple, Sephora, Uber also participating<ref name="coalition"/>
**[[Air Miles]] is Canada's largest loyalty program. 
**[[Canadian Tire]]'s [[Canadian Tire money]] is the oldest loyalty program in [[Canada]].<ref>the company gives out coupons which look like currency {{cite web
|url=http://www.canadaloyalty.com/Programs/canadian_tire_money.html
|title=Canadian Tire Money loyalty program
|publisher=CanadaLoyalty.com |access-date=23 November 2007}}</ref>

**The food and beverage industry also has several companies with rewards programs such as [[Tim Hortons]]' Tim's Rewards<ref>Tims Rewards: https://www.timhortons.ca/timsrewards</ref>
**[[Scene+]], a coalition program with participants include  Cineplex-owned cinemas, Scotiabank (for spending using its cards), Sobeys grocery stores, Home Hardware , Expedia, Recipe restaurants and [[Rakuten Rewards]].<ref name="coalition"/><ref>{{cite news |last1=Nuttall |first1=Jeremy |title=Loyalty has its price. More companies partner-up with reward card programs as cash-strapped customers hunt for deals |url=https://www.thestar.com/business/loyalty-has-its-price-more-companies-partner-up-with-reward-card-programs-as-cash-strapped/article_509f8d5f-2162-50d2-8b65-b1097d6b2c39.html |access-date=3 July 2024 |work=Toronto Star |date=8 September 2023 |language=en}}</ref>
* '''United States''': In the US, loyalty cards have a long history.<ref name="Leveraging Loyalty Programs Using C">{{cite journal |last1=Taylor |first1=Wayne |last2=Hollenbeck |first2=Brett |title=Leveraging Loyalty Programs Using Competitor Based Targeting |journal=Quantitative Marketing and Economics |date=2021 |volume=19 |issue=3–4 |pages=417–455 |doi=10.1007/s11129-021-09237-y |ssrn=3353432 |s2cid=108298338 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3353432}}</ref> Some are only online.<ref>{{cite web |url=https://www.frugalforless.com/money-making-apps
|title=101 Free Money Making Apps |website=FrugalForLess.com
|access-date=7 November 2017}}</ref><ref>{{cite web
   |url=https://techcrunch.com/2016/01/22/fivestars-gets-50m-to-help-small-retailers-run-loyalty-programs-like-their-bigger-rivals
|archive-url=https://web.archive.org/web/20160123073613/http://techcrunch.com/2016/01/22/fivestars-gets-50m-to-help-small-retailers-run-loyalty-programs-like-their-bigger-rivals
|url-status=dead |archive-date=23 January 2016
|title=FiveStars gets-50m-to-help-small-retailers-run-loyalty-programs-like-their-bigger-rivals
|website=Techcrunch |access-date=22 January 2016}}</ref><ref>{{cite magazine |magazine=[[Forbes]]
     |url=https://www.forbes.com/sites/tomiogeron/2011/12/14/belly-enters-loyalty-space-with-ipad-based-system
     |title=Belly Targets Paper Punch Card With iPad-Based Loyalty Service
     |last=Geron |first=Tomio |date=14 December 2011}}</ref> Some partner with classic credit cards.<ref name="foursquare and amex">{{cite web
   |url=http://www.businessinsider.com/foursquare-and-amex-launching-big-partnership-next-week-at-sxsw-2011-3
   |title=Foursquare And Amex Launching Big Partnership Next Week at SXSW
   |website=[[Business Insider]] |access-date=22 November 2016}}</ref><ref name="shopkick and visa">{{cite web
|url=http://mashable.com/2011/11/21/shopkick-visa
|title=Shopkick and Visa to Offer Retail Store Purchase Rewards
|first=Todd |last=Wasserman |website=[[Mashable]] |date=21 November 2011
|access-date=22 November 2016}}</ref> [[Frequent-flyer program]]s and, less commonly ''SeaMiles''<ref>{{cite news |url=http://touch.latimes.com/#section/-1/article/p2p-28977082 |title=Article |work=[[Los Angeles Times]] |date=14 July 2008 |access-date=5 February 2015 |archive-date=6 October 2012 |archive-url=http://webarchive.loc.gov/all/20121006015957/http://touch.latimes.com/#section/-1/article/p2p-28977082 |url-status=dead }}</ref> co-exist with programs that donate a percentage of sales to a designated charity.<ref>{{cite web
|url=http://www.animalalliancenyc.org/help/other/igive.htm
|title=Shop Through iGive.com |website=animalalliancenyc.org |access-date=22 November 2016}}</ref> Some American retailers either have not implemented these cards, or eliminated them, in favor of discounts for all shoppers.<ref>{{cite magazine |magazine=TIME
|url=https://business.time.com/2013/07/11/a-disloyalty-movement-supermarkets-and-customers-drop-loyalty-card-programs/
|date=11 July 2013 |title=Disloyalty Movement}}</ref> Few states regulate club cards. As an example, supermarkets in [[California]] are subject to the Supermarket Club Card Disclosure Act of 1999.<ref>{{cite web |website=FindLaw
|title=Supermarket Club Card Disclosure Act of 1999
|access-date=25 July 2007
|url=http://caselaw.lp.findlaw.com/cacodes/civ/1749.60-1749.66.html}}</ref>
**Coalition programs include [[Plenti]]<ref>{{cite news |last1=Smith |first1=Geoff |title=How Coalition Loyalty Programs can Excel |url=https://adage.com/article/digitalnext/strategies-coalition-loyalty-programs/299861 |access-date=3 July 2024 |work=Ad Age |date=August 2016}}</ref>
* '''Mexico''':
**[[Aeroméxico Rewards]], formerly Club Premier, a coalition program with participation of [[Aeromexico]] airlines and multiple otherwise unrelated retail chains 
**Monedero Naranja (lit. "Orange Wallet"), in which [[Comercial Mexicana]]'s various supermarket brands La Comer, Fresko and City Market, participate<ref>{{cite web |title=¿Qué es Monedero Naranja? |url=https://www.lacomer.com.mx/lacomer/#!/wallet?succId=287&succFmt=100 |website=La Comer |access-date=3 July 2024}}</ref>

===Oceania===
Flybuys is the largest loyalty program in both [[Flybuys (Australia)|Australia]]<ref>{{cite news
|title=And the best loyalty program goes to... Coles
|url=http://www.bandt.com.au/news/marketing/and-the-best-loyalty-program-goes-to-coles
|access-date=20 May 2013 |newspaper=B & T
|date=20 May 2013 |archive-url=https://web.archive.org/web/20130609211226/http://www.bandt.com.au/news/marketing/and-the-best-loyalty-program-goes-to-coles|archive-date=9 June 2013|url-status=dead}}</ref><ref>[[Flybuys (Australia)]] {{cite news
|title=Coles supermarket to overhaul FlyBuys scheme
|url=http://www.theaustralian.com.au/news/nation/coles-supermarket-to-overhaul-flybuys-scheme/story-e6frg6nf-1226007126615
|access-date=27 February 2011 |newspaper=[[The Australian]]
|date=17 February 2011 |first=Blair |last=Speedy}}</ref><ref>{{cite web
   |title=Australia: FlyBuys launches iPhone App
   |url=http://www.colloquy.com/breaking_view.asp?xd=7379
   |publisher=Colloquy |access-date=17 August 2010 |date=29 June 2010
   |url-status=dead
 |archive-url=https://web.archive.org/web/20100729113827/http://www.colloquy.com/breaking_view.asp?xd=7379|archive-date=29 July 2010}}</ref> and [[Flybuys (New Zealand)|New Zealand]].<ref>[[Flybuys (New Zealand)]] {{Cite web
   |url=https://z.co.nz/about-z/news/general-news/nzs-biggest-loyalty-programme-gets-pumped-with-fuel-discounts
|website=z.co.nz
|title=NZ's biggest loyalty programme gets pumped with fuel discounts{{!}} Z
|publisher=[[Z Energy]]|language=en |access-date=2018-01-09}}</ref> 
* '''Australia''': Contenders include [[Woolworths Group (Australia)|Woolworths]]' [[Everyday Rewards]],<ref>{{Cite news
|title=Woolworths reports solid profits
|url=http://www.ausfoodnews.com.au/2010/08/26/woolworths-reports-solid-profits.html
|access-date=27 August 2010 |newspaper=Australian Food News
|date=26 August 2010}}</ref> [[Myer]]'s [[MYER one]] program, the [[Priceline (Australia)|Priceline]]'s Sister Club,<ref>{{Cite web |last=Smith |first=Sean |date=2023-06-30 |title=Wesfarmers Health fast-tracks growth to $40 billion bounty |url=https://thewest.com.au/lifestyle/health-wellbeing/wesfarmers-health-wants-to-go-as-fast-as-we-can-in-pursuit-of-takeover-targets-and-growth--c-11124906 |url-access=subscription |access-date=2023-08-30 |website=The West Australian |language=en}}</ref> [[Amcal]] Rewards, [[Miller's Fashion Club]], and the [[BB Retail Capital]] Pulse Rewards program.<ref>{{cite web|access-date=25 July 2007 |title=Brazin's Pulse goes over the 1 million mark |publisher=The Wise Marketer |date=25 September 2006 |url=http://www.thewisemarketer.com/briefs/archive.asp?action=read&bid=1989 |url-status=dead |archive-url=https://web.archive.org/web/20160303184658/http://www.thewisemarketer.com/briefs/archive.asp?action=read&bid=1989 |archive-date=3 March 2016 }}</ref>
* '''New Zealand''': Other programs include the [[New Zealand Automobile Association]] AA Smartfuel programme and [[Countdown (supermarket)|Countdown]] supermarket's Onecard. [[Kachingo]] was a short-lived "card free" programme.

==As virtual currency==
Loyalty programs have been described as a form of centralized [[virtual currency]], one with unidirectional cash flow, since reward points can be exchanged into a [[Goods and services|good or service]] but not into cash.<ref name=ECB>{{cite book|title = Virtual Currency Schemes| date = October 2012|publisher = European Central Bank|location = Frankfurt am Main|isbn = 978-92-899-0862-7|page = 5| chapter-url = http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf|author = European Central Bank| access-date = 5 March 2014|chapter = 1}}</ref>

==Criticism==
Evidence for the effectiveness of loyalty programs is controversial. Many companies are unsure whether and how to use customer loyalty programs profitably. Many programs (regardless of location, size, or industry) are run without the appropriate metrics or target parameters.<ref>{{cite journal |last1=Meili|first1=Alexander |title=Loyalty Program Assessment. KPI-Based Evaluation of Customer Loyalty Programs |journal=HWZ Working Paper Series |date=2022 |doi=10.5281/zenodo.6521984 |doi-access=free }}</ref>

Some companies complain that loyalty programs discount goods to people who are buying goods anyway.<ref name="Leveraging Loyalty Programs Using C"/> Moreover, the expense of participating in these programs rarely generates a good return on investment. The Forte Consultancy Group regards loyalty programs as [[Bribery|bribes]].<ref>
{{cite web
 | url= https://books.google.com/books?id=DPHuBQAAQBAJ
 | title= Designing Best-in-Class Loyalty Programs – Getting the Benefits Right
 | series= White Paper
 | publisher= Forte Consultancy
 | access-date= 28 April 2019
 | quote= Loyalty program benefits are, in their essence, a bribe. In exchange for a set of benefits, a consumer allows the company to give those benefits to track his or her purchasing behavior.}}</ref> In the case of infrequent spenders, loyalty fees provide a means of [[subsidy|subsidizing]] discounts.

A 2015 study found that most supermarket loyalty cards in the United States do not offer any real value to their customers.<ref>{{cite web
|website= Weekly Ads and Circulars
|url= http://www.iweeklyads.com/the-best-and-worst-loyalty-programs-grocery-retailer-and-drug-stores
|title= Discover the Best and Worst Loyalty Programs with Our New Infographic
|access-date= 3 September 2015
|quote= The reality is, not all loyalty rewards programs actually add value. Some programs only exist to draw you in and tempt you away from competitors that could actually offer you a better deal. The worst? It turns out that just about any supermarket chain will offer you nothing but bad deals.}}</ref> Furthermore, commercial use of customers' [[personal data]] – collected as part of loyalty programs – has the potential for abuse; it is highly likely that consumer purchases are tracked and used for [[marketing research]] to increase the efficiency of marketing and advertising, which is one of the purposes of offering the loyalty card.<ref>{{Cite news | url=https://www.bbc.com/news/technology-43483426 | title=How do companies use my loyalty card data? | work=BBC News | date=21 March 2018 }}</ref><ref name="papers.ssrn.com">{{cite journal |last1=Taylor |first1=Wayne |last2=Hollenbeck |first2=Brett |title=Leveraging Loyalty Programs Using Competitor Based Targeting |journal=SMU Cox School of Business Research Paper No. 19-10 |date=2021 |ssrn=3353432 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3353432}}</ref> For some customers, participating in a loyalty program (even with a fake or anonymous card) funds activities that violate privacy.<ref>{{cite web | last = Albrecht | first = Katherine | website = Consumers Against Supermarket Privacy Invasion And Numbering | url = http://www.nocards.org/essays/nofakes.shtml | title = Why getting a shopper card under a fake name is not the answer | access-date = 23 November 2007 | archive-url = https://web.archive.org/web/20071019035625/http://www.nocards.org/essays/nofakes.shtml | archive-date = 19 October 2007 | url-status = dead | df = dmy-all }}</ref> Consumers have also expressed concern about the integration of [[RFID]] technology into loyalty-card systems.<ref>
{{cite news |last= Blau |first= John | work= [[InfoWorld]] | url= http://www.infoworld.com/article/04/03/01/HNmetrostore_1.html | archive-url= https://web.archive.org/web/20040312062250/http://www.infoworld.com/article/04/03/01/HNmetrostore_1.html | url-status= dead | archive-date= 12 March 2004 | title= Metro Store bows to pressure from anti-RFID activists | date= 1 March 2004 | access-date= 23 November 2007 | quote = Ahead of a planned demonstration on Saturday, Metro AG decided to drop the use of RFID tags in customer loyalty cards used at its Extra Future Store supermarket in Rheinberg, Germany, where the retail group is testing several new IT retail technologies, Metro company spokesman Albrecht von Truchsess said Monday.}}
</ref>

One may view loyalty and credit-card reward-plans as modern-day examples of [[Kickback (bribery)|kickbacks]].<ref>
Compare:
{{cite book
 | last1 = Gup
 | first1 = Benton E.
 | title = Bank Fraud: Exposing the Hidden Threat to Financial Institutions
 | year = 1990
 | url = https://books.google.com/books?id=zJjaAAAAMAAJ
 | location = Rolling Meadows, Illinois
 | publisher = Bankers Publishing Company
 | publication-date = 1990
 | page = 85
 | isbn = 9781555201678
 | access-date = 10 January 2021
 | quote = [...] kickback and credit card schemes that are relatively small by themselves, but collectively qualify as major frauds.
}}
</ref>
Employees who need to buy something (such as an airline flight or a hotel room) for a [[business trip]], but who have discretion to decide which airline or hotel chain to use, have an incentive to choose the payment method that provides the most [[Cashback reward program|cash-back]],<ref>
{{cite book
 | last1 = Kowalik
 | first1 = Frank
 | title = IRS Humbug: IRS Weapons of Enslavement
 | year = 1991
 | url = https://books.google.com/books?id=IvUJAQAAMAAJ
 | location = Oakland Park, Florida
 | publisher = Universalistic Publishers
 | publication-date = 1991
 | page = 46
 | isbn = 9780962655203
 | access-date = 10 January 2021
 | quote = Among other terms used for kickbacks are sales incentive, cash back, coupon sales, commissions, and discounts. 
}}
</ref> [[Cashback reward program|credit-card rewards]] or loyalty points instead of minimizing costs for their employer.<ref>{{cite journal |last1=Shugan |first1=Steve |title=Brand Loyalty Programs: Are They Shams? |journal=Marketing Science |date=2005 |volume=24 |issue=2 |pages=185–193 |doi=10.1287/mksc.1050.0124 |doi-access=free }}</ref>

==See also==
* [[Geomarketing]]
* [[Identity management]]
* [[Incentive]]
* [[Incentive program]]
* [[Loyalty marketing]]
* [[Premium (marketing)]], e.g., "premiums"
* [[S&H Green Stamps]]
* [[Trading stamp]]
* [[Sunk cost]]

==References==
{{Reflist|30em}}

{{Means of Exchange}}
{{Customer loyalty programs}}
{{Authority control}}

{{DEFAULTSORT:Loyalty Program}}
[[Category:Pricing]]
[[Category:Customer loyalty programs| ]]
[[Category:Nudge theory]]
[[Category:Reward websites]]