Fintech company Bumped has released data from its two-year pilot showing that turning grocery customers into owners can boost visits and spend.
Bumped users who received fractional shares of stock for their spending with The Kroger Co. banners such as Fred Meyer, Food 4 Less, Harris Teeter, King Soopers, QFC and Ralphs subsequently shopped those stores an average 31% more often, and spent an additional 32% monthly. That means that customers are spending $73.94 more at the grocer’s banners store each month once they become owners.
“In a category where convenience matters, creating an owner has resulted in the consumers’ willingness to go the extra mile,” observed David Nelsen, CEO and founder of Portland, Oregon-based Bumped. “An additional trip every month among the entire segment of Kroger owners shows that stock rewards are powerful enough to get your customers to drive past your competitor and back to you.”
Bumped's pilot rewarded more than 13,000 U.S. consumers in fractional stock rewards when they spent at more than 80 brands. Users selected their favorite brand in each category from which to receive stock rewards.
The findings of the pilot were researched and reported on by The Columbia School of Business, which recently released its independent study.
Cincinnati-based Kroger employs nearly half a million associates who serve 9 million-plus customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names. The company is No. 3 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in North America.