Rewarding Bad Habits

Loyalty program members spend 12-18% more than non-members at the same stores. That's not because loyal customers happen to buy more — it's because the program is designed to increase spending. Points aren't a thank-you for your business. They're a behavior modification system wearing a friendly mask.

The genius of loyalty programs is that they make you feel like the beneficiary when you're actually the product. Every swipe of that card feeds a data machine that tracks what you buy, when you buy it, and what offers will get you to buy more.