Here’s one way to piss off your loyal customers: Keep an eye on a Review
Steve’s breakdown: The headline is ” Dunkin’ fans, angered by rewards changes, say brand has lost its identity”. That’s not what you want to hear from your heavy users but Dunkin’ pulled it off. Can you help get them out of this pickle? Give them a shout.
CANTON, MA: Changes to Dunkin’s loyalty program, which have made it more expensive to collect and redeem rewards, have prompted some customers to stop ordering from the coffee chain.
Last week, the company doubled its points accrual rate from 5 points per dollar spent to 10 points per dollar spent, and added free food options. But it also more than doubled the cost of a small cup of coffee from 200 points to 500. This means rewards members have to spend $50 instead of $40 at Dunkin’ before they can redeem points for a free beverage, translating to a 25% hike in points price.
“Is a free drink really going to be worth that cost like it was before?” Zach Williams, a Dunkin’ customer and loyalty member in New Hampshire, said. “Dunkin’ has really started to play with [the loyalty program] and consumers started to catch on.”
For more complex drinks, which used to cost 200 points, the devaluation of loyalty points is more extreme: Refreshers, cold brew and espresso beverages cost 125% more points, and the chain’s signature lattes and frozen drinks have seen a 175% increase in points cost when accounting for the new accrual rate. These changes have transformed Dunkin’s loyalty offering from a good deal to bad one, Williams said. Williams generally ordered a Caramel Swirl Iced Coffee with cream, and would visit the chain before work every day.
Dunkin’ wrote in an email to Restaurant Dive that additional changes to its reward program like its “Boosted Status,” which offers more rewards to diners who visit the chain 12-plus times in a month, would make the rewards point cost of many coffee drinks roughly equivalent to the old program’s costs. Boosted Status gives customers 12 points per dollar, which still means the cheapest coffee is slightly more expensive in rewards terms.
Dunkin’ also emphasized the addition of free food items to its loyalty program, stating customers are able to redeem large numbers of points for a full meal. The company also lowered its threshold for rewards redemption, Dunkin’ said, with “Lil Treats” like espresso shots or Munchkin trios costing 150 points. These are the program’s cheapest rewards items.