This The sinister truth about customer loyalty programs Will Break Your Brain

You think buying points and watching your loyalty card stack up is a win? Think again, because the real truth behind customer loyalty programs will leave you gasping.
Nobody talks about this: behind every “freebie” and “bonus points” scheme are hidden tiers that aren’t actually freebies. Companies hand you a shiny loyalty card, but the real magic happens when you hit that 5‑point threshold and you’re officially “VIP” for a brand that can now push you into a subscription that locks you in for life. The real reason behind the extra points you collect? They’re not rewards at all; they’re data‑mining mines. Every scan of a card is a data point, every “reward” is a hook that pulls you back one more purchase. What they don’t want you to know is that the loyalty program’s point chart is a mathematical curve designed to trap you into the “point break” moment when you’re most likely to splurge.
Check the numbers: a recent study by a shady think‑tank (they’re anonymous, but you’ll hear the name) showed that 78% of users never actually redeem their points. The loyalty program is a psychological treadmill. You keep running, chasing points, while the brand keeps you in a cycle of hyper‑motivation and constant micro‑shopping. Meanwhile, your data is sold to advertisers, shipped to data brokers, and used to feed AI compilers that predict what you’ll want next. The loyalty program is actually a data‑gathering front.
And here’s the mind‑blowing conspiracy: the loyalty program’s reward thresholds are set by big tech in collaboration with credit card companies. Every time you hit a threshold, you’re automatically enrolled in a credit card’s rewards program, which in turn feeds the credit card’s data feeds to a larger AI algorithm that can predict future spending. The “free” discount you get is actually a percentage drop in the data weight on your credit file. The program is a subtle way to keep you indebted to the brand, and to them, through hidden interest. They basically get money for free while you get “free” rewards. The brand has a 30% commission on every transaction made using the loyalty card, and the rest goes to the data broker who sells your shopping history on the black market of AI.
And now, the real kicker: the loyalty programs also have a feature called “smart points” that adjust based on your online activity. They track your browsing habits with integrated tracking pixels. So next time you think you’re just getting a coupon, think again. The “coupon” is a piece of code that triggers a push notification to your phone, which you then click, driving traffic back to the brand’s site, or to a partner affiliate. The more clicks, the higher your “loyalty points” and the more data they collect.
So what’s the takeaway? The loyalty program is a sham, a way for retailers to lock you in, push you into micro‑subscriptions, and funnel your data to a massive algorithmic ecosystem. Anyone who thinks points are a reward is being duped. The next time you get that “You’re a VIP!” email, think of the hidden layers of exploitation.
Tell me I’m not the only one seeing this. Drop your theories in the comments, share this if you believe in conspiracy. This is happening RIGHT NOW – are you ready?