Here’s why companies are becoming more stingy with their customer rewards programs

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Dunkin’ stopped offering customers a free drink on their birthday and instead give them triple loyalty points on their purchase.

“While we’re assessing our own personal expenses, so are businesses,” Marshal Cohen, chief industry advisor of Circana and retail expert, told The Associated Press.

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.Despite consumer pushback, some chains have argued adjustments to rewards programs simply reflect how customers behave. Starbucks, which gives its rewards members a free drink or food item for their birthdays, progressively limited the timeframe for redeeming that gift over the years.. In the months following Dunkin’s announcement, dozens of Twitter users have expressed disappointment over learning that the free birthday drink was gone.

 

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