Brand loyalty is costing consumers

"Company loyalty programs are actually costing you a lot of money. That's because shoppers who stick with their favorite brands just aren't being rewarded the way they used to be. She called customer loyalty "a sham." Airlines, internet providers, and banks do a good job of luring in newcomers with flashy deals, while longtime customers quietly pay more. As a result, frequent flyer miles buy less, internet bills creep up after promo rates, and credit card rewards shrink in value."

"Companies know inertia keeps people stuck, whether it's the pain of job hunting or the annoyance of switching cell carriers. Switching is a hassle and isn't easy. In Stankey's corporate culture memo, he said AT&T employees shouldn't expect promotions based on tenure. The company is shifting from a "familial" culture, one that coddles its employees, to a "market-based" one that emphasizes performance."

Bringing a Stanley tumbler to the office could date you, according to a Morgan Stanley survey of more than 500 interns that reveals Gen Z brand preferences across clothing, shoes, and cars. Loyalty has collapsed in both employment and consumer relationships. Workplace norms now favor market-based performance over tenure, exemplified by AT&T guidance that promotions should not be expected by longevity. Company loyalty programs often disadvantage long-standing customers by offering flashy deals to newcomers while longtime customers quietly pay more. Rewards such as frequent flyer miles, promotional internet rates, and credit card benefits have diminished. Switching providers or jobs remains a significant hassle, reinforcing customer and worker inertia.

Read at Business Insider