Loyalty program vs coupons?

Yo

So which do you like more coupons with money off or the value added type or a loyalty program buy 10 get 1 type deal.
I'm inclined to go with the loyalty program because I feel like coupons are for deal hunters that just go to the lowest bidder also it changes the expectations of customers paying full price. On the other hand guess if you price them and it works why not. Let me know what you think.

Thanks