Loy­al­ty pro­grams — con­sumers encounter them every­where. Stay 5 nights at a hotel and get a 6th night free. Spend $150 on gro­ceries and pick up a free turkey on the way out of the super­mar­ket. These pro­grams have proven to be an extreme­ly pop­u­lar mar­ket­ing tool and the typ­i­cal U.S. house­hold belongs to about 12 cus­tomer loy­al­ty pro­grams. But they can also be cost­ly, espe­cial­ly when con­sumers stop being so loy­al. Is there any way for a busi­ness to win in this sit­u­a­tion?