The Points Illusion: How Loyalty Rewards Outsell Discounts

31/03/2025 12 min

Listen "The Points Illusion: How Loyalty Rewards Outsell Discounts"

Episode Synopsis

In this episode of Loyalty Unlocked, we dive into one of the most debated questions in retail and loyalty - Do discounts drive more value or do loyalty points win in the long run?

Drawing on experiences from yuu Rewards, Nectar and Tesco Clubcard, we explore why points - despite offering less immediate value - can outperform discounts in driving customer spend and engagement. We break down the behavioural biases at play and share practical takeaways on when to use points, when to use discounts, and how to design offers that truly move the needle.

Read the full article at https://medium.com/@marksage/the-points-illusion-how-loyalty-rewards-outsell-discounts-106bd53d5a22