Laszlo Sajtos

Can you actually maybe buy those products a lot cheaper?

Or is it really worth it for you?

So is it really benefiting you to redeem that within the program?

You actually need to think about what is the value of a point.

So I'm not talking about what is the value of the actual loyalty program and the data itself.

I'm talking about what is the value of a point for the consumer.

If you're using that value,

and multiplying it with the number of points that you can redeem these products for, would you come out ahead than let's say the cheapest option for buying the exact same product in the market, right?

And then we actually compared these across a couple of thousands of products.

And we have really established that many loyalty programs through these sets of products, they don't actually benefit the customer.

So in fact, I could actually buy most of these products that are offered in a catalog much cheaper

And not many programs actually provide high enough point value and high proportion of these products in their catalog that would actually be providing me with financial economic benefits.

Or like, you know, a lot of things, a lot of times what we found is that if you redeem your points for very cheap items, like a DVD or something that only costs like, you know, 15 or 20 or maybe 50 bucks, then you tend to be worse off.

So royalty programs, in many cases, they provide actual economic benefits for products or on products that actually have a much higher point associated with them.

Correct.

So accumulate as much as you can and go for bigger ticket items.

It comes back to this previous idea of do you think you can make it work for you?

So I guess consumers definitely think about what brands are worth being loyal to.

But I think your question basically goes to the heart of this issue that most of us are not patient enough.

So, you know, it comes down to very instant rewards.