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

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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.

item for their birthdays, progressively limited the timeframe for redeeming that gift over the years — from 30 days, to one week, to four days and, finally, to just the date of your birthday in 2018.

For Sephora customers enrolled in its Beauty Insider birthday rewards, for example, they can still claim their free gift in person with no minimum purchase. But it costs the company money to ship products sold online, noted Leora Lanz, assistant dean of academic affairs and assistant professor of practice at Boston University's School of Hospitality Administration.Despite consumer pushback, some chains have argued adjustments to rewards programs simply reflect how customers behave.

Still, the announcement felt off-putting for many Dunkin' customers, who shared frustrations online. In the months following Dunkin's announcement, dozens ofusers have expressed disappoinment 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."

 

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