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

WASHINGTON — Reward programs, including birthday freebies and discounts, have long been a way for brands to build loyalty and incentivize spending. But now some companies are becoming a bit more stingy — and customers are taking notice.

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. 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 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.

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