A funny thing is happening in the loyalty industry. Consider the average North American consumer is enrolled in a record 13 formal loyalty programs that include typical features like monetary rebates, points and discounts to lock members in and keep them coming back. Now consider that actual participation in those loyalty programs (that is, customers engaging and making purchases) shrank 14% from the previous year, according to the 2015 Bond Loyalty Report.

The widespread availability of loyalty programs is outpacing consumer demand. This oversupply is creating a growing sense of customer indifference toward the most potent mechanisms that differentiate a brand.

Funny, right? Not so much.

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