The basics of loyalty programs are recognize and reward. Earn and burn are the reward part, but the recognition you get — the ‘VIP status’ — for focusing on the goal of staying with a single chain 25 times or 50 nights, or flying an airline 50,000 or 100,000 miles a year gets you treatment orders of magnitude better than the average person walking through the doors or onto the plane.
But there are limits that the marketing sometimes makes it easy to forget. And sometimes employees take elite status too far, also.