The loyalty programme is dead
Updated excerpt.
Points programmes were built for airlines, then copied by everyone else.
Why the maths stopped working
Three forces broke the model at once:
- Acquisition costs rose faster than margins
- Guests started comparing across brands instantly
- The points liability sat on the balance sheet
Membership is a relationship. Points are a receipt.
What replaces it
| Model | Retention | Margin |
|---|---|---|
| Points | Low | Negative |
| Membership | High | Positive |
Read the full benchmark or try SELECT * FROM guests.
- Recognition beats discounting
- Access beats accumulation