No more free coffee on your birthday? Companies rein in customer rewards programs - here's why
CTV
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.
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.
Last fall, for example, many balked at Dunkin's decision to stop offering a free drink on their birthday and instead give them triple loyalty points on their purchase. On June 1, Sephora started requiring a US$25 minimum purchase for online customers looking to claim a free gift and 250 loyalty points during their birthday month. And Red Robin added a dine-in only and US$4.99 minimum purchase requirement for customers to get their free birthday burger.
Changes to birthday rewards or redemption requirements aren't new. 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 -- from 30 days, to one week, to four days and, finally, to just the date of your birthday in 2018.
Some experts say the cost of maintaining loyalty programs, as well as recent impacts of inflation and changes in consumer behaviour 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 advisor 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? ... (And) is there another way of doing this that wouldn't cost us as much money?'"
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.
Sephora did not immediately respond to The Associated Press' request for comment.
SpaceX on Tuesday launched another Starship rocket, but passed up catching the booster with giant mechanical arms.
Caring for a senior pet is no walk in the park, especially when the pet can't walk at all. A Colorado woman was shocked to find her dog's wheelchair missing from the porch Tuesday morning
New York City on Monday issued its first drought warning in 22 years after months of little rain -- and will restart the flow of drinking water from an out-of-service aqueduct as supplies run low.
Six monkeys were still on the loose early Monday after dozens escaped earlier this month from a South Carolina compound that breeds the primates for medical research, according to authorities.
Hundreds of organic baby- and toddler-sized rompers sold by an Ontario-based sustainable clothing company have been recalled over concerns they could catch fire and injure children, according to Health Canada.
Joe Biden toured the drought-shrunken waters of the Amazon River’s greatest tributary Sunday as the first sitting American president to set foot in the legendary rainforest.
The US Centers for Disease Control and Prevention is investigating an E. coli outbreak in at least 18 states linked to some organic carrots, which has led to at least one death.
Tropical storm Sara drenches Honduras’ northern coast, with flash flooding and mudslides in forecast
Tropical storm Sara stalled over Honduras on Saturday. The area could see life-threatening flash flooding and mudslides through the weekend.
It's a growing trend online: fragrance influencers who rave about the beauty, sexiness and notes of vanilla in perfume have caught the attention of Canadian teenagers who are, in turn, flocking to cologne counters across the country.
The Edmonton Valley Zoo is debuting two red panda cubs named after the mischievous twin wizards in the "Harry Potter" series.
While it remains small compared to established online spaces such as X, Bluesky has emerged as an alternative for those looking for a different mood, lighter and friendlier and less influenced by Musk.