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StitcherLoyalty programs promise discounts, rewards, and exclusive perks. But what if those programs are actually designed to study your spending habits and push you to spend more? In this episode, we unpack how loyalty programs work behind the scenes and why those “perks” might be costing more than you think.
Knowing what we can do may be limited, but doing it anyway is better than laying down and taking it.
How Loyalty Programs are Scamming You
Jen and Jill discuss an article about the cycle of loyalty programs and how they hook customers from the start. Once people join, companies begin tracking what we buy, how we react to prices, and how our spending changes over time. They use this data to test rewards, group customers by how much they’re willing to spend, and collect even more information.
Over time, these programs often get worse—charging people to join, turning basic perks into “premium” memberships, raising fees, and slowly reducing the value of points and rewards while making it harder to leave. As a small step forward, Jen and Jill encourage paying attention to how companies offer discounts and pushing back against surveillance pricing.
Why Is This IMPORTANT and How Do We Stop It?
Pricing is shifting from one price for everyone to micro-targeted pricing, where companies use personal data to charge each person the most they’re willing to pay. Because loyalty programs are one of the main ways companies collect that data, it is important that we have stronger consumer protection laws and leaders who prioritize consumer privacy matters.
In the meantime, we can limit tracking by not clicking “allow all” cookies, requesting companies delete your data if your state allows it, and using tools like ad blockers or a VPN. Services like Aura combine features like a VPN, tracker blocking, data removal, and identity theft protection in one place.
What do you look for when choosing a customer loyalty program or rewards solution?
Jen keeps it minimal and prefers local loyalty programs and just a very few corporate ones. Meanwhile, Jill is just here for freebies…
Bill of The Week
Thanks Cary for sharing your bill about your new years resolution to pay down debt! Decreased homeowners and car insurance saving $488/mo
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
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I've always wanted to be more frugal but my main issue is impulse spending. As someone who is neurodivergent sometimes it's really hard to stick to a routine, habit, budget etc. This book was an approachable, engaging way to learn better finance methods without feeling like a total bore. It genuinely feels like a friend teaching you better habits.
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