Study Shows Some Red Robin Customers Double Spend When Rewarded in Company Stock
Two-year study from fintech company, Bumped, shows that Red Robin customers who become shareholders in company spend up to twice the amount of other customers
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 found Red Robin customers doubled their spend with the restaurant after being rewarded in Red Robin stock.
First, Bumped users were rewarded in fractional shares of Red Robin stock for their spending with Red Robin — becoming owners in the brand. They visited the restaurant 0.16 more times monthly, and spent an additional 32 percent monthly.
When some users selected Red Robin, they received an email alerting them that they would get $10 of Red Robin stock as a thank you for choosing Red Robin. Customers who were given the $10 stock reward spent twice the amount of users who were not (by both increasing transactions and visiting more often).
Bumped saw the initial stock reward have a long-term effect on customer behavior as well. Those users showed a 143% increase in spend over the first six months, and a 116% uplift in spend among those users 12 months later. Impressive staying power for a one-time $10 investment.
"To see this level of impact more than a year after a program was implemented shows that once a shopper becomes a shareholder, their lifetime value increases drastically," says David Nelsen, CEO & Founder of Bumped. "This study indicates that ownership is a reward mechanism that can build lasting relationships between consumers and the brands they love."
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.
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.