Fintech company, Bumped, releases new data on how stock rewards shift customer behavior when shopping with home improvement stores like Lowe’s
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 driving customer engagement with home improvement brand, Lowe’s.
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Once customers were rewarded in fractional shares of stock for spending at Lowe’s, Bumped saw a $47.82 increase in monthly spending with the home improvement brand, along with an additional .84 visits per month. The average reward-spend-ROI for Lowe’s was 69.5x, thanks to the 62% of customers who changed their behavior after becoming an owner.
More than that, ownership shifted spend from a key category competitor to Lowes. Once customers were rewarded in Lowe’s stock, the brand saw its share of wallet in the Home Improvement category increase by 24%, meaning that users began spending more with Lowe’s and less with their competitor as a result of ownership.
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. Customers selected their preferred brand in each category, and were subsequently rewarded in fractional shares of stock when they purchased. Customers who selected Lowe’s were rewarded in fractional shares of Lowe’s stock.
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“In industries dominated by duopolies, like the Home Improvement category is, it’s critical that brands look to build long-term, lasting relationships,” says David Nelsen, Founder and CEO of Bumped. “I believe that the brands who bring their customers into the fold by making them owners will be able to win spend directly from competitors both near and long-term.”
Bumped announced high-level results of their pilot in January, and will be introducing the results of a number of brand and category studies throughout the quarter.
