No more free coffee on your birthday? Companies rein in customer rewards programs — here's why

  • 📰 KSLcom
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 51%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Some experts say the cost of maintaining loyalty programs, as well as recent impacts of inflation and changes in consumer behavior since the start of the COVID-19 pandemic, are among the reasons why companies may be pulling back.

"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?'"

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. 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.

Still, the announcement felt off-putting for many Dunkin' customers, who shared frustrations online. In the months following Dunkin's announcement, dozens of Twitter users have expressed disappointment over learning that the free birthday drink was gone. Some joked that they "no longer run on Dunkin,'" a dig at the chain's slogan, and others suggested that they might take their future business elsewhere.

Red Robin, which said it began the dine-in only and $4.99 minimum purchase requirements to its free birthday burger "to maintain the integrity of the promotion" and give guests "the best possible experience" by celebrating in restaurants — also introduced a half-birthday treat in 2023 "as an added gesture of appreciation."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 549. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breakingviews - Man mixes risk and reward in private credit betMan Group is getting into the hot private credit market, by buying a majority stake in lender Varagon Capital Partners for $183 million. It’s the UK alternative asset manager’s largest acquisition since its takeover of Numeric in 2014.
Source: Reuters - 🏆 2. / 97 Read more »

The Overlooked Origins of the War on Bud Light and Other “Woke” CompaniesStarbucks and Anheuser-Busch are the latest corporate targets of tactics honed by segregationists post–Brown v. Board.
Source: Slate - 🏆 716. / 51 Read more »