Chili's share of wallet grows nearly 20% among customers rewarded in fractional shares of EAT stock, Bumped study shows
Bumped data shows that making restaurant customers owners of the brand decreases visits to competitors, increases spend and visits, maybe adds an extra appetizer
Bumped — the tech company on a mission to create an ownership economy — released more data from their two-year pilot study showing that when Chili's customers were rewarded in stock, the restaurant brand increased their share of wallet among competitive chain restaurants 19.16%.
Over a two-year data study, Bumped automatically rewarded users in fractional shares of Chili's brand stock (Ticker: EAT) when they purchased food or drinks from the restaurant. On average, customers who became owners of the Chili's parent company spent about $14 more monthly, and perhaps opted for an extra drink or appetizer to celebrate their ownership, adding about $5 more to their bill every time they visited.
The increase in those numbers, while reasonable spend for a hungry individual or family, adds up to a significant boost for the restaurant. The behavior change mentioned above occurred among nearly 90% of study participants, resulting in a nearly 20% increase in share of wallet for Chili's. That meant customers were opting to dine at the restaurant they were part owners in, rather than other national chains.
"Our restaurant stock rewards study indicates that ownership in companies matters at every scale," says David Nelsen, CEO & Founder of Bumped. "Brands need to understand that subtle shifts in spend, across their entire user base, becomes a game-changer for their bottom line, and even more importantly for their relationship with their customers."
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. Users chose their favorite brand in each category to receive stock rewards from. Bumped managed the entirety of the pilot and results were not influenced by brand involvement.
The findings of the holistic Bumped pilot were researched and reported on by The Columbia School of Business, who released their independent study in February 2021.
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 FINRA BrokerCheck website.
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