Companies tighten restrictions on customer perks and rewards such as airline miles

Companies tighten restrictions on customer perks and rewards such as airline miles


Shoppers ⁤at Brickell City Centre in ‌Miami, Florida,‍ US, on Wednesday, June 14, 2023.

Eva Marie Uzcategui | Bloomberg​ | Getty Images

It’s⁢ not your imagination: Companies are getting stingier with customer rewards.

Airlines are making it harder to earn elite status. Retailers have tightened return windows and tacked on fees. Dunkin’ and ‌Sephora are even cracking down⁤ on birthday treats.

The shift shows companies are rethinking how to attract, retain and reward customers after the Covid pandemic as consumers change their spending⁤ priorities and businesses face pressure to control costs while increasing sales.

Companies have to be careful. If they slash benefits too severely, they risk losing customers, but being too generous ⁣comes with a⁣ cost.

“It’s not a simple math ⁣exercise to ⁤say letting few people into a particular group or offering fewer people a promotion just translates to a change in sales volume,” said‌ David Garfield,⁢ global head of industries at consulting firm…

2023-08-05 07:00:01
Link from www.cnbc.com
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