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Bumped, a fintech startup that has been piloting its software app over the past two years, released data on Tuesday that shows how customers became more engaged and more loyal to stores that offered fractional shares in their companies as rewards when they shop.
What Happened: In the pilot project for Lowe's Companies Inc. (NYSE: LOW), a home improvement store, Bumped found that customers who were rewarded for their purchases with shares of the stock increased monthly spending by $47.82 and visited the store on average 0.84 times more per month.
The data also showed that customers who were rewarded in fractional shares of Lowe’s stock became more loyal and shopped less at Lowe’s competitors, according to the press release.
Why It Matters: Brands are always looking for ways to increase customer loyalty and steal market share from competitors. “In industries dominated by duopolies, like the Home Improvement category is, it’s critical that brands look to build long-term, lasting relationships,” says David Nelsen, founder and CEO of Bumped.
What’s Next: The stock market can be intimidating and only about 55% of Americans invest in stocks, according to research by Statista. The mission of Bumped is to allow more customers to hold shares of their favorite brands to create the idea of an ownership economy.
Giving customers a unique and easy way to access markets through shopping rewards benefits customers by allowing them to build ownership of the company over time and benefits the brands by helping them to increase customer loyalty.
Photo courtesy: Miosotis Jade via Wikimedia
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