Duane Reade, testing customer loyalty
Duane Reade introduced a new rewards program today. I happened to be in a Duane Reade this afternoon, where the cashier swiftly upgraded me to the new system and gave me a thick coupon book for my loyalty.
The pharmacy and quick-shop chain is promoting its new program, Flex Rewards, as a consumer-friendly upgrade. They cite the new system’s non-expiring reward points and paperless redemption as the main improvements.
Which is great, until the consumer finds out the real meat behind the change:
What Rewards will I receive?
You will receive a $5 Reward for every 500 FlexRewards points earned.
The old Duane Reade Dollar Rewards Club offered a one-point-per-dollar system that was blissfully simple: spend $100, earn 100 points, get $5 in store credit. It was simple and useful enough that I actually kept my rewards card handy, and I earned a handful of redemptions.
The new program is more confusing and far less valuable. Consumers now get two points per dollar spent and the same $5 reward now comes at 500 points. Or, in layman’s terms, after $250 spent rather than $100. Earning the five bucks just became two and a half times as difficult.
Flex Rewards also has a couple of gimmicks in the system, such as SuperSaver, which encourages customers to not redeem their points in exchange for bonus points back when they finally spend the credit. It’s a cash-back system that feeds itself.
If any of this has heads spinning, I suspect it’s by design. Duane Reade has devalued its loyalty program by a minimum of 60 percent. It cloaked the bad news in technical upgrades and new schemes that try to divert attention away from the devaluing.
With Flex Rewards, Duane Reade stands to give away a lot less value in 2010 than it did in 2009. If I had a stake in the company, I’d be pleased with the new program. As a regular Duane Reade customer, though, I’m probably just going to stop using my card.
I hate the new card too, its white like all my other ones, and doesn’t say Duanne Reade in huge letters
I like the new program. MUCH easier no paper and lots more ways to earn points
No paper?? What does that mean? All i know is i gotta spend $250 now instead of $100 to get $5. That SUX. The only reason I put up with the high prices was for the points to get my bonus
Boo duane reade
No paper, no expiration, redeem when I want, how much I want, + bonus points + Superclub = better imho
The new card completely sucks.
Obviously, its better not having to keep the $5 paper coupon, and the fact that you can spend the bonus right away.
But for the price of $250 for every bonus, versus the old $100? That is absolutely retarded. I would rather lose every other paper coupon than having to spend two and a half times the money for a tiny $5 bonus.
Defenitley not worth shopping at Duane Reade anymore. Will only shop at CVS and Ride Aid from now on.
Duane Reade is not worth shopping at. It is overpriced. I do not care for the new card and much less for the new point program.
I will shop elsewhere.
How much % back does CVS give? All the stuff with Flex seems better?
Sadly, today marked the last day that I’ll shop at Duane Reade, perhaps forever, unless it’s an emergency. Without explanation the register person (who was kind, articulate, and efficient — for once) took my old points card and gave me a new one. I did a Google search to see what I just signed up for (if you can call it signing up for anything). I have to say, after a few minutes of research and reading the fine print, that this new program is disastrous, stingy, deceptive, confusing, inane, alienating, ineffective, and just down right crappy. I can’t believe in this crowded drug / convenience store environment that Duane Read would risk losing a lot of loyal customers with such a change in policy. But hey, I know what they’re banking on: New Yorkers being idiots who would rather overpay than walk an extra block. Sadly, Duane Reade will get away with this, because New Yorkers are indeed idiots.
Sad but very True… CVS gives $3.00 off every $15.00 spent. so spend $30.00 and get $6.00. While the OLD rewards at Duane had one spending $100.00 and get $5.00 back. Now spend $250.00 they say and earn $5.00.
CVS is better anyway. Customer services is normal and no more need to deal with idiots who cant do anything!
I’m an office manager in midtown, and I spend appx. $50 – 75 a week at Duane Reade buying stuff for the office. It’s extremely convenient, if a little overpriced. I just got back from dropping $95 on snacks (yes, just snacks) and realized I hadn’t gotten the $5 coupon. A google search to find out why brought me here. So… huh? They’re trying to trot this bullshit new program out as an improvement? It’s not even my money that I spend there, but I’m still going to be taking my business elsewhere from now on.
Interesting side note: My search also brought me to Duane Reade’s press release – and 4 or 5 hits later, there it was again… printed verbatim on the Fox Business News site.
When the cashier told me the rules I simply responded “Ah I see, your new program is worth just 40% of the old program.” I kind of knew this would happen. The other program was just to good. Too bad. CVS here I come.
I don’t know if it’s a glitch in my card or maybe a “new customer” benefit, but I have already gotten 2 $5 dollar reward redemptions and I have only spent like $100 dollars. How is this possible?
Maybe its not so bad after all.
The two posts here that claim it’s much better because there is no paper are probably DR employees. Used to be a 5% rebate, changed to 2% rebate. Given the economic climate, I’m surprised that DR is doing this to loyal customers. I was a regular customer, but they’ve just lost my business.
I can’t believe how they tricked customers into thinking they were getting a better system since you now get 2 points for every dollar. THAT DOESN’T MATTER WHEN YOU HAVE TO SPEND MORE IN ORDER TO GET THE SAME COUPON! Seriously, whatever benefit comes from going paperless is completely outweighed by the ridiculous 500-point requirement for a $5 coupon.
I live in Manhattan, and am surrounded by Duane Reades. I don’t care if it’s inconvenient, I am going out of my way to avoid that store now. WTF.
I hope other posters here don’t just talk big, but that we all really make sure to tell our friends to stop shopping there. It’s bad enough it is so overpriced, but to trick loyal customers like this is very low of DR.
At times they have selected/sale items where you would get 50 or even 100 extra points for buying them. Also, if you update your information online they give you an extra 100 points. Like someone here said, the points really do add up. Don’t get mad at the new system, you guys were shopping for those ridiculous prices already. Is 5 dollars really going to make a difference? People lose them shits all the time. Let it go , im sure ill see one of you guys at a duane reade next week, anyway. Oh, & btw, i love duane reade employees
If anything, because Duane Reade is saving money with paperless rewards system, they should be using the money they save to either keep the same $100 for $5 or lower their prices. Instead they got stingier on the rewards and, is it just me, or did their prices go even higher? The friendly staff at my local DR on 40th & B’way in NYC would be the only reason I might still frequent the store on occassion.
This is ridiculous! I just spent a ton of $$ at DR, thinking I’d walk away with the $5 coupon. But, my receipt had nothing. Now, that I’ve read about the changes, I’m done with Duane Reade. I only put up with their higher prices before because of the $5 coupon. It’s not worth it any more. It’s fine for small things of convenience while at work. But, I’ll get my bigger shopping done at KMart which is much less expensive. Based on the above postings, I’ll look for a CVS nearby as well. Duane Reade, you stink.
Walgreens will be purchasing Duane Reade to the tune of $1.075 billion. http://is.gd/8CD6X
The transition will take some time, I’m sure.
I’m done with Duane Reade as well, having had the same experience of several commenters here–my card was swapped out with no comment, and I was left wondering this week why I had passed 100 points with no reward. I’ll be going out of my way for CVS from now on.
Duane reade suckkkkkkkksss
to the duane reade apologists on this thread:
the issue is not just the 5% refund being downgraded to a 2% refund.
it’s that duane reade insults our intelligence by telling us this is a new and better plan, when clearly its only purpose is to increase their profit margins!
i agree that the campaign to switch people over was deceptive and one-sided. i had my old card taken away (with unused points on it) and a new one given to me with a piece of paper to sign. not much of a choice if you ask me. all the promotional materials i’ve seen talk about how the new system is “paperless” but none mention the dollars and cents. naturally.
“Anonymous | January 18, 2010 4:21 PM | Reply
I like the new program. MUCH easier no paper and lots more ways to earn points”
Why do I have the feeling that this comment was posted by a Duane Reade employee?
Easier? Slightly, but certainly not “MUCH”
“Lots more ways…” Lots? No. Two additional ways. One that requires you to hold off on redeeming your reward and one that only works if you buy specific products that most customers won’t be able to regularly take advantage of.
If you’re going to shill for a company, make it a little less obvious.
Why does anyone still go to Duane Reade? Everything I need is about 20 percent higher priced that if I got to Target or, better yet, just order everything on line. Drugstore dot com and similar sites are great – you get exactly what you want, a cheaper price, free shipping and you can comparison shop to make sure you get the best price. I also can find a coupon for almost any site I visit. All of these street pharmacies like Duane Reade and CVS just accommodate our impulse shopping, since most of the items we buy from them are definitely not necessities. But most importantly, it’s a great way to give the finger to Duane Reade for trying to screw us over with fake rewards programs. Who needs em?
They just opened a new DR at my job’s building here in NYC so I’ll be buying a samich once in a while, other than that DR can suck my BALLS.
Lick em’ too!
Yeah, I was just looking at my last receipt and it says I have 290 points. I was wondering how much I needed to get the reward. I figured it was probably 500. They market it like you are getting double points but it doesn’t matter if the reward is for 2 1/2 times the old reward amount. They suck. Personally, I think DR is too expensive anyway. I can buy some stuff from Fresh Direct for cheaper!
So, for those that have not done the math, they have changed a 5% discount into a 2% discount. No wonder it is flexible. It is so much thinner.
Duane Reade reward is a Big Rip Off and thoses of you who have shopped there know that you have to spend so much more then before. Their rewards programs |(points) are unreal. the sales in these stores are too high just compare them to other store such as CVS, Rite Aid and even Pathmark….Well is Walgreen making suckers out of DR’s customers. Employees stated they are force to push these ridiculous Prices. I must say the stores downtown are easy picking for fast hands. Especially at night…. Don’t fool yourself there is something better than DR….