I’ve been working in the business of customer programs for 20 years now, and there is still confusion in the difference between a Loyalty program and a Rewards program. Both are used to promote repeat business with customers. For the majority of these programs, you exchange your name, sales data (and sometimes more) in exchange for a benefit such as a discount on your purchase. They make look the same, but you can think of rewards as being friendly and loyalty as being a friend.
Rewards programs tend to be focused selling you more (buy 7 get one free, discounted tickets, or accumulate points by spending). Loyalty gets a bit trickier. Within loyalty there is a deeper exchange and usually a conversation. When you are loyal, you choose that vendor over another, you talk about it with your friends (positively, but not always). Loyalty has a trust factor saying “I like the way you do business.”
A communication channel (such asin-store, in-app, receipt, text messaging, alters, email, direct mail) is not a program. Although you as a customer have to explicitly opt-in to a program or communication channel. Both loyalty and rewards programs relay on a communication channel, a way to reach you directly to you. In most instances you agree to have an open communication to benefit from these programs. This is the loyalty companies are seeking. Whether it offers discounts for usage or free items, it is only a Loyalty Program if it creates a friendship with an individual.
The very best reference is from a friend.