In this world of price transparency and competition, why should consumers choose your brand? They can easily pick up their phones and find the lowest price for sirloin steak, a car or a vacation. Yet, some customers will consistently choose the same airline, hotel, or retailer even when their preferred provider doesn’t have the lowest price.

Is this because of the loyalty program? The majority of loyalty programs today rely on a set-it-and-forget-it formula of, “Earn points as you spend and get something free....

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