Retailers Tighten Customer Perks and Rewards Programs
Companies across various industries are cutting back on customer perks as they prioritize higher profit margins. The shift in perks, ranging from airport lounges to free shipping and birthday treats, comes as businesses reassess their loyalty strategies due to changing consumer spending habits and the need to control costs while boosting sales.
Airlines, for example, are making it more challenging to earn elite status and raising the number of miles required for benefits, while retailers are tightening return windows, adding fees, and reducing freebies like birthday treats. Striking the right balance is crucial, as overly slashing benefits can lead to customer loss while being too generous can strain profits.
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