Last fall, for example, many balked at Dunkin's decision to stop offering a free drink on their birthday and instead give them triple loyalty points on their purchase. On June 1, Sephora started requiring a $25 minimum purchase for online customers looking to claim a free gift and 250 loyalty points during their birthday month. And Red Robin added a dine-in only and $4.99 minimum purchase requirement for customers to get their free birthday burger.
"While we're assessing our own personal expenses, so are businesses," Marshal Cohen, chief industry adviser of Circana and retail expert, told The Associated Press."Businesses have to look and say, 'Are these programs working? Are they working to full capacity? ... is there another way of doing this that wouldn't cost us as much money?'"
Despite consumer pushback, some chains have argued adjustments to rewards programs simply reflect how customers behave. In a statement to The Associated Press, Starbucks said it"found that the vast majority of members were using their birthday reward on their actual birthday." Others say that drawing attention to what's"being lost" can also cause backlash -- and it's better to provide clear alternatives for consumers to feel rewarded.