In a recent discussion, Colin Samson, our chief executive, said that giving customers a stake in the brands they love is a creative way companies can reward loyalty.
He went on to say “The solution is a twist on older loyalty programmes such as cash-back, discounts, coupons or ‘rewards’ points that can be traded for goods and services.
The idea behind fractional shares relies on customers using a mobile app that tracks each time they make a purchase with participating brands. The software then rewards the customer with a partial share (fraction) of that company’s stock.
This, Colin explains, makes fractional shares a potent marketing reward. “The idea is a key part of the emerging ‘ownership economy’, which leverages the concept of having skin in the game.
“So, if a person is offered bite-sized pieces of a company as a reward, that person is likelier to be loyal to the brand. After all, the better the brand does in the market, the greater the value of that person’s rewards,”
Here in New Zealand, our company is exploring and evaluating options for introducing fractional shares into the country and looking for ways to bring brands on board with this model.
Bumped launched its app in 2020 in the US. It now has over 20,000 users who earn fractional shares in 50 companies when they shop at more than 1,000 different retailers. The app allows consumers to turn their everyday spending into stock ownership.
Bumped represents a new way for brands to build relationships with consumers by making them brand ambassadors and part of the company’s story.
If your company is interested in thinking outside the box, we have a few tips to help you out.
1. Listen to the data
Customers can generate a lot of data when shopping. Businesses must take every opportunity to capture and use that data to enhance customer experience and drive brand loyalty.
Data is critical to customer loyalty. You can’t achieve loyalty without a deep understanding of your customer. Customers expect to be acknowledged and for companies to know their needs. People respond well if you give them a sense of belonging.
Loyalty programmes that don’t use data will quickly find themselves in decline and failing.
2. Be flexible
The power of fractional shares as a loyalty reward is in its momentum. People want to feel connected to a brand, and these rewards help achieve that connection.
Fractional shares as loyalty rewards add a whole new layer of sustainability for any business that can quickly adapt to the world’s most interesting marketing trend.
3. Be creative
People’s tastes, preferences and expectations can change quickly. Customers want to be valued, and that comes from understanding them.
Since technology prices are reducing yearly, technology outside your budget five years ago is probably affordable today. Don’t be afraid of playing with new technologies; you never know if you’ll find a hidden solution.