Rewarding in Stock Ownership Can Drive 33% Greater Lifetime Value

PORTLAND, Ore., Jan. 26, 2021 /PRNewswire/ -- Today Bumped—the fintech company on a mission to create an ownership economy through fractional stock rewards —released data from their two-year pilot study that shows the impact stock rewards can have on user behavior. The data indicates an owner drives 33% more lifetime value than a customer does.

The Bumped pilot ran for two years and rewarded over 13,000 US consumers in fractional stock rewards when they spent at more than 80 brands. Once rewarded in stock by a brand, the average Bumped user showed a 43 percent increase in monthly spending, with a 1.5x increase in monthly visits to brands that rewarded them in stock when they purchased. The average reward-spend-ROI across all 80 brands was 23x.

Customer Lifetime Value is nuanced and personalized to every brand, Bumped creates a Lifetime Value by looking at 2+ years of consumer transaction history, calculating a pre-stock reward value, and comparing it against the same calculation applied to post-stock reward behaviors.

The Gas and Wholesale categories saw some of the biggest lifetime value lift from rewarding customers in stock:

• 'Gas' category rewarded users for shopping at Chevron, BP, ExxonMobil, or Shell— when users selected their favorite brand and were rewarded in stock, Bumped saw an average 111% increase in LTV across those brands.
• 'Club Warehouse' gave users the choice between Costco, BJ'S Wholesale, and Sam's Club - the average LTV increase for those brands was 76%

The average US consumer is enrolled in 14 loyalty programs, but claims to only be active in half of them (Bond Loyalty). Those programs are composed of traditional rewards: points, coupons, or cash-back. These reward incentives may bring the customer in for an additional visit, but can create one-off moments or fleeting interactions, rather than supporting an engaging, lifelong relationship.

"When customers are rewarded with fractional shares of stock, they get something tangible and understandable," says David Nelsen, Bumped CEO & Founder. "The brands that stand behind their customers and give them the chance to participate in the market can make a material dent against competitors, in many instances the consumer will stop shopping with a competitor all together."

About Bumped

Bumped is a tech company on a mission to create an ownership economy. The Bumped app gives consumers the power to turn their everyday spending into free stock ownership, and their suite of tools helps businesses reward their customers in fractional shares of stock. Bumped believes that we all create the economy together, and we all should have the opportunity to benefit from it.

Disclosures

The Bumped app and website are operated by Bumped, Inc. Brokerage services are provided by Bumped Financial LLC, member FINRA /SIPC. More about Bumped Financial LLC on FINRA's BrokerCheck website.

Investing in securities involves risk, including possible loss of principal: Not FDIC Insured • No Bank Guarantee • May Lose Value. Nothing here should be construed as an offer to purchase or sell securities. All data analysis conforms to Bumped Data Analysis policy and results are significant to at least 95 percent.

Media Contact:
Amy Dunn
503-893-2698
[email protected]

SOURCE Bumped Inc.