It's not just the workplace. Loyalty is becoming a thing of the past. - Business Insider

Business Insider's Sunday edition newsletter by Steve Russolillo explores how brand loyalty programs are becoming costly traps for consumers while companies prioritize attracting new customers over rewarding longtime ones.

The newsletter examines the death of both workplace and customer loyalty, drawing parallels between corporate treatment of employees and consumers. Companies now exploit customer inertia by offering better deals to newcomers while loyal customers quietly pay higher prices for airlines, internet services, and banking. This shift mirrors AT&T CEO John Stankey's recent memo declaring workplace loyalty obsolete, emphasizing performance over tenure in what he calls a "market-based" rather than "familial" corporate culture.

• Loyalty programs actually cost consumers money as airlines devalue miles, internet bills increase after promotional rates, and credit card rewards shrink
• Companies leverage switching costs and customer inertia to maintain higher prices for existing customers while attracting new ones with flashy deals
• The corporate world has shifted from valuing long-term relationships to treating loyalty as weakness in both employment and consumer markets
• Smart consumers should regularly negotiate bills, shop around for better deals, and consider switching providers to avoid the "loyalty tax"