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Brand Loyalty

Introducing Next-Gen Loyalty Programs: Stock Rewards

The 2020 pandemic shifted consumer behavior drastically, and loyalty models that worked prior to the pandemic are no longer suited to customer demands, today and for the future.

Consumers want more from their favorite brands and banks – beyond simple transactional loyalty. Traditional cash-back and points have made standard loyalty programs reliable over the years, but the next generation of loyalty programs are showing to generate stronger and more authentic emotional customer relationships, thanks to innovative reward mechanisms such as stock rewards.

What’s not working when it comes to loyalty

Nearly two-thirds of consumers say their loyalty is more difficult for brands to maintain than ever before, while 67 percent of consumers are not satisfied with traditional loyalty programmes (Clarus Commerce, Premium Loyalty Data Study 2020). Customers are demanding an emotional connection with banks and brands, rather than settling for just another point that can be easily forgotten about, devalued or misunderstood. Organizations that grant their customers a new type of engagement opportunity — namely ownership — can refresh the narrative, stand out from competitors and develop authentic relationships with higher lifetime value.

Most traditional loyalty programs are defined by their commonplace rewards currencies: cash-back or points, usually distributed through card products or punch cards. As is, these models have been found to only reach fewer than 5 percent of consumers (LedgerPay). That makes it no surprise that 88 percent of CEOs are “concerned” about customer loyalty — and rightfully so (KPMG).

The infrastructure of traditional loyalty models are proving to be stale and ineffective in building lifelong customer relationships. Innovating the conventional loyalty model is becoming increasingly essential for maintaining customer relationships. Moving beyond “transactional” loyalty — simply relying on purchases for engagement — and into “emotionally-charged” loyalty dynamics, which elevate the brand relationship beyond just the purchase, is key. After all, if retaining a loyal customer costs 5x less than acquiring a new one, ensuring those relationships truly count matters.

Introducing the Next Generation of Loyalty Programs

The key to any successful loyalty program is an authentic relationship between the organization and its customer. Good loyalty programs bring a customer into the brand, make them feel exclusive, and generate a connection on an emotional level– moving past the pure transactional, monetary relationship to something that transcends the business dynamic. A truly valuable reward can be a key component to building this. It’s the binder between an organization and its customers — the token of gratitude for continued loyalty and support.

Historically, the accumulation of points or redeemable cash-back have done little to move the needle for customer–brand loyalty. The harsh truth: 79 percent of consumers say they don’t want to accumulate points anymore, but would rather receive more exciting, immediate benefits to maintain their loyalty (MyTotalRetail, 2021). This further reinforces why 54 percent of loyalty memberships are considered inactive (Capgemini, 2018). Organizations can’t afford to continue investing in models that simply don’t engage or excite.

The New Caliber of Rewards: Stock

By providing a reward that genuinely delights, institutions can easily advance their loyalty programs and take customer relationships to the next level. This is where Bumped comes in — as it’s been our mission to innovate the loyalty landscape since 2017.

Bumped partners with brands and banks to offer their customers free fractional shares of stock for their purchases. The results have been significant– for brands, banks and customers. The business value of stock rewards has been validated by the Columbia School of Business, which independently reviewed our data and affirmed that ownership and spending behavior are strongly correlated. From their study: “Individuals spend approximately 40 percent more per week” and have a “spending response of 100 percent” after being given stock rewards.

Stock rewards are a fresh, innovative rewards mechanism that has shown to intrigue and engage customers more than traditional reward currencies. Brands that have given their customers stock rewards have seen the appreciation reflected through authentic emotional connection. In fact, 85 percent of Bumped users have said fractional shares of stock are more exciting compared to conventional loyalty rewards. Even moreso, 72 percent say that they feel more loyal to a brand after receiving stock rewards.

By rewarding customers with something unique, such as a piece of the organization via ownership, customers and brands can become literally invested in each other — emotionally and tangibly. You’ll also be helping your customers in so many more ways, to supplement what you already offer today. For brands and banks that offer free stock rewards to their customers, the additional benefit of good press and a story that comes with it can also be invaluable.

By giving customers the opportunity to automatically become stock owners when they shop, brands and banks can stand out from competition, leverage their products to top-of-the-wallet, while forming loyal relationships that last.

Give a Reward that Matters

With an innovative reward system, brands and banks have a unique opportunity to delight and empower their customers to a new level — and continue to build that dynamic everytime that they swipe. And when 73 percent of consumers are more likely to recommend organizations with good loyalty programs, organizations can surely expect referral and acquisition to simultaneously grow with time (Bond Loyalty Report, 2021).

Bumped built the first B2B technology platform with an underlying brokerage focused on ownership to enable brands and banks to use our prebuilt set of technology tools specifically designed to reward in fractional shares of stock. Our Suite of APIs is strategically tailored to give organizations the ability to leverage our technology and services to reward their customers with fractional shares of stock.

Become a leader of the next generation of loyalty programs by offering a reward that effectively moves the needle. Reach out to our team at to learn more.


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