A Year of Loyalty
It’s been just over a year since we started bringing customers off the waitlist and onto the Bumped platform. One full year of cards linked, loyalties selected, and customers becoming shareholders in the brands they love.
We launched Bumped on my belief that everyone deserves to be an owner. From my time in the loyalty and incentives space, I felt strongly about our hypothesis: that owning fractional shares of stock in the brands you love could change consumer behavior. That the pride of ownership can formalize attachment with the brands you’re loyal to and potentially stop you from walking into a competitor’s store.
I wanted to take this moment to look at some highlights from our first year “in market”—through an initial test that allowed us to hone the tech behind our platform and move into pilots and data-testing for over 30 brands. I’ll also share some of the shifts we’ve been able to support by helping brands turn their customers into shareholders and to celebrate the change one year can bring about.
Making Shoppers, Shareholders
Here at Bumped, we celebrate the data that points to how much ownership matters—that it can empower consumers to think about where they spend their hard-earned money. That it feels good to walk into a store and know part of it is yours, even if it’s just a percentage of a share. So when we emailed customers and asked how ownership has impacted them, we were excited to hear that:
- 65% of Bumped users have told their friends about a company they own through the platform. We’re excited about this because it means customers aren’t just “shopping.” They’re advocating for the brands they care about!
- 55% of Bumped users have shopped less with competitors of companies they own. For us, that’s what being an empowered owner looks like—knowing a piece of the store is yours, why shop anywhere else?
- 31% of Bumped users say they’ve paid more for something because they are an owner of a brand. This points directly towards our vision that brands can compete on values, products, and connection to the customer—not just prices.
Those numbers, along with the feedback about ownership as a meaningful reward, have fueled our work to keep building Bumped. But even more amazing has been seeing the effect on both consumers and the brands we’re testing. This is about the entire relationship, after all.
Now, I’m about to share some examples of what we saw in pilot studies—these are all real numbers from study cohorts, with brand names anonymized. Like any good data snapshot, the following comes with appropriate disclosures. Bumped pilot studies are conducted across a subset of users and shouldn’t be considered a guarantee of future performance. Phew! Back to the fun part.
Loyalty Can Shift Marketshare
Let’s start with one of our pilot studies, a grocery store that increased their market share among Bumped users by 3.5%.
At the beginning of a 3-month period, in one of our study-cohorts, about 5,000 Bumped users selected and began receiving stock for their purchases in a brand we’ll call “The Grocer” (for anonymity).
As they began owning their own piece of The Grocer, Bumped users who selected the brand:
- Visited an average of 1.3 additional times per month
- Spent an average of an additional $59 per month
Not only did those numbers increase, but those users also spent less with The Grocer’s competitors during the same time period.
In another study, several thousand Bumped users selected a national superstore and were rewarded in stock when they shopped there. We’ll refer to this store as “Everything Store.”
After being rewarded in shares of Everything Store stock, on average, consumers shopped there an additional 1.2 times per month and spent an additional $65.02 per month.
Moreso, consumers who had not shopped with Everything Store, prior to selecting the brand in Bumped, visited the store 2.3 times a month, spending an average $125.17 per month. For me, this shows that the value of ownership as a reward can be enough to get a new customer into a store and keep them coming back.
Own it, Visit More
Of course, monthly planning and prep is one thing, but what about when customers own pieces of the more impromptu, less scheduled brands they visit? Can ownership also impact quick eats and restaurants? I’ll dive into the pilot of one specific brand—this time, we will borrow the pseudonym construct and refer to the brand as “Hungry Burger.”
For this pilot, Bumped users could choose from at least six different burger quick-service restaurants (QSRs). When about 6,500 Bumped users selected the brand and starting receiving stock for their purchases at Hungry Burger, we saw:
- +1.02 additional monthly visits, on average
- $3.05 increase in average spend per purchase
- Spending an additional $9.03 spent monthly
For QSRs like Hungry Burger, this means there is opportunity to increase visits and top-line revenue by turning customers into owners.
Your Impact on Bumped
All of those exciting data points would mean nothing without you all—every user, brand partner, advisor, and investor who has helped shape our vision into the reality it is today. Thank you for being with us throughout our first year. For testing the tech, for improving the product, and for being patient as we work to build something that’s the first of its kind—a company that rewards you in fractional shares of stock when you spend with the brands you love.
I can’t thank you enough.
For the brands that want to talk about how to make ownership a part of your loyalty programs—learn more and get in touch with my team at Bumped for Brands.
Studies included are from Bumped data surveys as part of pilot program. Only statistically significant results included. A few notes on fractional shares: they’re typically not transferable between brokerage firms. If you want to transfer your Bumped account, you may have to sell your fractional shares first. Fractional shares can’t be put into certificate form or physically mailed, nor do they have voting rights.