Verizon Customers Rewarded in VZ Stock Spend 42% More, Show 89% Retention Rate
PORTLAND, Ore., May 4, 2021 /PRNewswire/ -- Today Bumped — the tech company on a mission to create an ownership economy — released data from their two-year pilot study indicating that customers who became owners of their telecommunications brand spend more with them and are less likely to churn over time. The study showed an average retention rate of 89% once customers became owners.
Over a two-year data study, Bumped automatically rewarded users in fractional shares of stock when they made purchases or paid their monthly bills at AT&T, Sprint, T-Mobile, and Verizon, and found that even in a subscription-based category, ownership drive significant behavior change. On average, customers who became owners of their mobile brand spent 13% more monthly, and transacted with them 14% more often. Verizon saw the most significant spend increase with an additional average monthly spend of $52.46 per month. That 42% increase in spend is more than the cost of purchasing a new iPhone 11.
When it came to acquisition, Bumped saw an average 35% increase in user count across the category. T-Mobile saw the largest user acquisition jump at 47%.
Bumped looked closely at retention over the life of tudy, noting that AT&T, Sprint, T-Mobile, and Verizon had an average retention rate of 89%. AT&T had the strongest retention rate of the group at 93%.
And of course, Bumped looked at users who were spending with multiple telecommunications brands prior to being rewarded in stock, to look at how their behaviors changed as a result of becoming an owner. On average, once a brand started rewarding their customers in fractional shares of their stock, they gained 11% wallet share from the other major brands. In fact, T-Mobile performed best here, claiming 13% share of wallet from other brands, enjoying an average customer spend increase of $123 per month.
"This is a category that can really benefit from the reduction of churn and stealing clients from competitors," said David Nelsen, Founder & CEO of Bumped. "T-Mobile was an original innovator in this space, launching their T-Mobile Tuesday Stock giveaway in 2016. While theirs was a one-time promotion, a program that rewards in ownership in perpetuity would have likely taken significant market share from competitors based on this research study. What lacked in the past, was the data to support the action."
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. Users chose their favorite brand in each category to receive stock rewards from. Bumped managed the entirety of the pilot and results were not influenced by brand involvement.
The findings of the holistic Bumped pilot were researched and reported on by The Columbia School of Business, who released their independent study in February 2021.
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SOURCE Bumped Inc