This study elaborates on the concept of loyalty. Strategic work to increase loyalty such as loyalty programs is increasingly being questioned. Using a relational perspective, viewing loyalty as an ongoing process of social exchanges, the paradoxical relationship between loyalty strategies and customer loyalty is underlined. The empirical data comprised qualitative interviews with eight key managers in Swedish retail companies. The result shows that loyalty programs foster rational shopping behaviours, misinterpreted by the retailers as loyalty. Thus, the concrete nature of loyalty pro-grams make the customers less loyal only returning the concrete resources given. Particular resources will not be given by customers if none are offered by retailers. From the perspective of social exchanges, a shift from tangible rewards to forming meaningful emotional bonds is needed in order to achieve customer loyalty.