The broken logic
Points are not the problem. The logic underneath them is.
A points program rewards a transaction. It does not give someone a reason to actually prefer you. People collect the discount, not the brand. The moment a competitor offers a better deal, the loyalty goes with it.
Most of these programs were built for a different customer, in a different market, with a lot less competition for attention. Stamp cards and airline miles made sense when reach was cheap and options were few. Neither is true anymore.
External channels keep getting more expensive and harder to win. Which makes the case for real loyalty, the kind that does not depend on a discount, more urgent than it has been in years.









