Several retailers, including Best Buy, Dunkin’, Sephora, and Starbucks are facing criticism for making changes to their loyalty programs that are giving fewer benefits to customers. 

Several retailers, including Best Buy, Dunkin’, Sephora, and Starbucks are facing criticism for making changes to their loyalty programs that are giving fewer benefits to customers. Best Buy’s loyalty program now requires members to use the retailer’s high-interest credit card to earn points and claim rewards, while Dunkin’ increased the number of points needed to redeem a free drink. Beauty giant Sephora added a minimum purchase requirement for online redemption of birthday gifts, and Starbucks doubled the number of stars required for a free drink. These changes are driven by the retailers’ desire to cut costs in the face of inflation and economic uncertainty, and instead focus on rewards for their most loyal customers. However, shoppers have expressed frustration over the lack of transparency and reduction in benefits, leading to concerns that these changes could steer members away from loyalty program participation altogether. Experts suggest that retailers need to carefully consider future loyalty program updates and be cautious about rolling out additional perks to address the backlash and maintain customer loyalty. YPulse data shows about half of Gen Z and Millennials belong to a loyalty program and 62% say getting specific discount codes and coupons is very / extremely important to them. (Modern Retail)