The Points Illusion: How Loyalty Rewards Outsell Discounts

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

Published OnMarch 31, 2025

Chapters (4)

The problem with discounts
The points effect (case studies and behaviour)
Why points work (psychology and design)
Strategies and Takeaways

About the podcast

Welcome to Loyalty Unlocked, an AI-driven podcast exploring the creation of yuu Rewards, one of the most ambitious coalition loyalty programs ever launched in Hong Kong. Through expert insights and real-world lessons, we break down the risks, strategies, and innovations behind its success. Whether you’re in marketing, loyalty, or business, tune in to uncover what it takes to build a game-changing program. Intro music by Kabbalistic Village (kabbalisticvillage.com/)

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