No more free coffee on your birthday? Companies rein in customer rewards programs amid high inflation

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Now some companies are becoming a bit more stingy, and customers are taking notice.

A Dunkin' storefront sign is seen on October 26, 2020 in New York City. The Dunkin’ Brands, the parent company of the Dunkin’ and Baskin Robbins chains, is in negotiations to sell itself to Inspire Brand, a private equity-backed company. 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. Consumers are likely to continue to see changes to birthday rewards and customer loyalty programs down the road, Cohen noted.

 

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