Loyalty Programs allow marketers to avoid competing on price, making it much harder for competitors to copy what they are doing. They can copy the product, the discount, but not the soft benefits value that is unique to a company brand.
Brand loyalty will be truly achieved when you’re the only one in your category that people will recall and associate with. For e.g. Photocopy = Xerox / Search Engine = Google / Shaving = Gillette amongst others. If a brand is not making efforts to truly change or develop the category that it belongs to, then it is under a high risk of being another me-too in that category.