The Loyalty Myths

I am starting to research a new book on consumer loyalty marketing.  It never ceases to amaze me how many so-called loyalty cards  shoppers carry around - or don't as the case might be.  I am interested in hearing from both shoppers and marketers over the next few weeks on what they think the myths are in loyalty marketing.  Here's a taste:

- the $55,000 toaster - are you on track for one of these ?

- do points systems really work ?

- what is the shopper benefit from loyalty programs ?

- what is the retailer or marketer benefit ? does it justify the investment ?

- what is your favourite program ? why ?

- which programs are a 'rip-off' ? why ?

- what should marketers do differently ?

- do marketers take privacy issues seriously ?

and feel free to add your comments and questions below - let's get a debate going :)