Companies Reassessing Birthday Reward Programs Amid Pandemic and Cost Concerns

Some companies are reducing benefits or changing policies for birthday reward programs in response to the costs of maintaining them and shifts in consumer behavior.
Companies argue adjustments make programs more flexible and align with how customers now use them.
Clear communication about changes is key to avoiding backlash, and alternative rewards or redemption options can help.
Further changes to loyalty programs are likely as companies work to balance profitability and customer experience.
Starbucks and others have made past changes; Dunkin' and Sephora are among those recently scaling back birthday rewards.