Some companies are becoming a bit more stingy with rewards programs, 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 last fall, for example, many balked at Dunkin’s decision to stop offering a free drink on their birthday […]
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Companies rein in customer rewards programs
Some companies are becoming a bit more stingy with rewards programs, 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 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. 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.