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5 Best, 5 Worst Customer-Loyalty Programs

BOSTON ( TheStreet) -- Bar-coded icons of customer loyalty line the wallets and hang from the key chains of countless consumers, though that commitment isn't always so richly rewarded.

According to marketing firm Colloquy's Loyalty Census released last year, membership in U.S. customer-loyalty programs has reached 1.8 billion, up from 1.3 billion in 2007. The census showed that the average U.S. household has signed up for 14.1 loyalty programs, but only participates in 6.2 of them.

Why take part in only 44% of programs designed to reward active shoppers? Perhaps the other half of those programs don't prove nearly as rewarding as advertised. Do they offer lots of perks and freebies? Do they give the customer additional access and enhanced service? Or are they just taking up real estate behind better cards because the consumer doesn't want to compile 100,000 points just to get a pat on the back.

TheStreet thumbed through the terms and conditions of more loyalty programs than you can cover with a year's worth of air miles. It came up with five that can be a customer's best friend -- along with five others that can be their worst nightmare. We did the research, so here's your reward:

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