Everyone values loyalty and organizations have been racking their brains to try and turn one-time clients into loyal customers who will want to do business with that particular brand. Cognizant that customers might need a little push to become loyal to a brand, organizations have been enticing them with programs that reward loyalty.

These programs have come a long way since the 1890s, when The Sperry & Hutchinson Company, Inc. (S&H) launched its Green Stamps program, the earliest known version of today's loyalty program. According to McKinsey & Company organizations in the United States spend a staggering $50 billion on loyalty programs every year. Getting them right is crucial since these programs can generate up to 20 percent of the company's profits.

Hotels and airlines have been at the forefront of creating loyalty programs, trying to charm customers into continuing to do business with them. A 2009 survey by Forrester showed that 52 percent of online travelers in the U.S. actively use travel loyalty programs, with business travelers being 25 percent more likely to belong to a travel loyalty program than those who travel for leisure.