Is your purchasing getting influenced by loyalty programs?

Tweet

The idea behind loyalty programs have been to reward frequent customers with discounts or other incentives. They create a sense of appreciation and can help in customer retention and boosting sales. Both customer and retailer have potential benefits from same. I have started noticing certain families are now over spending and creating unnecessary habits just to get their desired levels in loyalty programs. I have seen couple of families who are tied to certain loyalty programs at certain stores and making purchases only from there whereas there are few stores and online stores which were offering things at better prices. Instead of focusing on cost potential, reaching the reward threshold certain individuals look at. I could not understand the psychology behind that. Loyalty programs should not be confused with the reality of the prices and what we should truly focus upon. Are loyalty programs influencing your purchasing style?