Only a few spots left to join us for AI Marketing Strategies

Join us Sept. 24 in NYC to connect with execs from Digitas, Claire's, Marriott, Havas and others

SECURE YOUR SEAT

‘Business suicide’: Tweak to Birchbox’s rewards program angers subscribers

Birchbox is having a rough week.

First it was revealed that funding is drying up at the once-buzzy subscription box service, forcing it to slash 50 jobs at its New York headquarters and scale back its ambitious brick-and-mortar growth plans. Now it’s angering fans with a major devaluation to its rewards program.

In an email sent to members, Birchbox announced it is scaling back the number of points people can rack up every month. Previously, subscribers could review as many items as they wanted to in their boxes every month to receive 10 points for each item reviewed. For every 100 points collected within a year, users earned a $10 discount.

But starting on July 11, Birchbox is capping the number of items they can review to five every year, drastically reducing the number of discounts they can collect — and cutting the point expiration date from a year to just six months. However, Birchbox is dropping the 100 point minimum to cash in the points and letting people use them after collecting 10 points.

Birchbox said in a statement provided to Digiday that the changes are meant to crack down on phony reviews, while hinting that it’s meant to cut costs.

“Our customer experience is our top priority and it’s important to us to continue offering a generous loyalty program,” Birchbox said. “We’re implementing a few changes that make the program as simple and rewarding for our customers as possible, while ensuring it’s sustainable from a business perspective.”

But Birchbox’s plans alienated loyalists, who got vocal on Twitter:

The outrage spilled onto Birchbox’s Facebook page, too. “Your [sic] a joke keep pushing your store and screwing your subscribers you will fail,” one peeved person wrote. Another person commented that Birchbox’s changes align it with its “boring” competitors like Sephora, writing “you have to meet our loyalty with honesty and respect for us to support you.”

 

More in Marketing

Perplexity is betting big on creators

AI companies face a tricky sell: to convince creators to advocate for a technology that many fear could threaten livelihoods.

Marketers are using AI search concerns to argue for higher media budgets

Brands with long consideration journeys, like insurance and cars, are paying close attention to shifting search behaviors. They’re using that concern to make their case for more media dollars.

In Graphic Detail: Inside the scramble to measure a brand’s AI visibility

Marketers are catching on that AI doesn’t rank their brands, it decides whether it gets brought up at all. That shift is already reshaping how the industry works.