MILFORD Ohio – For the past few years loyalty and reward programs have been a staple of the U.S. credit card industry – and one where some credit unions have believed they could not easily compete.

But a recent white paper produced by Colloquy, a consulting and research service specializing in rewards and loyalty programs, suggests that rewards programs have proliferated to such a level that they may have lost much of their marketing appeal.

According to the firm, membership in U.S. loyalty rewards programs has reached 1.3 billion, more than four times the national population. A census of loyalty programs in the U.S. found that the average U.S. household belongs to no less than 12 loyalty programs.

The firm said a loyalty program recognizes and rewards the best customers of a business. Colloquy's Loyalty Census 2007 tabulates program members, not unique individuals.

“Does the participation data mean the loyalty empire has reached a saturation point?” asked Colloquy Director Kelly Hlavinka “Loyalty memberships are flying dangerously high. Fat membership roles may look good in a press release, but active loyalty program members are the only members who count,” said Hlavinka, adding, “Marketers must adopt highly targeted enrollment strategies and allocate resources where they accomplish the most good.”