Instead of the one-size-fits-all approach, where each item costs the same number of points but varies greatly in personal value, McDonald’s could ensure that each point holder gets rewards that resonate with their unique preferences, whether that’s fries, burgers or something else entirely. It’s a win-win, not only optimizing the perceived value of rewards for the customer but also maintaining low redemption costs for McDonald’s. Customers would see their points as a tangible pathway to getting more of what they love rather than a generic currency. 

Loyalty programs are not just about rewarding transactions; they’re about rewarding trust, deepening the customer relationship and making every interaction count. By closing the gap between perceived and actual value, brands can transform their loyalty programs from a cookie-cutter model to a dynamic, customer-centric engine driving repeat business.