Make owning stocks as easy as earning loyalty points.
Bits of Stock is a platform that automatically rewards customers with an Stock Rewards every time they make a spend and it offers an API that allows other brands to build customer loyalty through this platform.
Technological innovation of bits of Stock
Bits of Stock’s innovation lies in offering stock rewards as a form of loyalty rewarding system. Fractionalisation of assets – Bits of Rewards in stocks, cryptocurrencies, private equity, and other Growth Rewards, makes the use case possible.
Although at the moment the app only operates in the US, there is a planned expansion to other countries. Bits of Stock is collaborating with the largest retailers in the Netherlands, and has 50 active brands in the US. Bits of Stock has already participated in a Bootcamp in 2018. Besides that, BoS participates in the Yellow accelerator programme (US), and ScaleNL accelerator that aims to help Dutch tech companies to scale in the US. The offices are located in Amsterdam and New York, with some specialists working remotely from other countries.
There was a study conducted along with Arun Sundararajan, the Harold Price Professor of Entrepreneurship at NYU’s Stern School of Business.
That explores how Stock Rewards loyalty programs trigger reciprocity and affect towards the brand, investigating the relationship between stock ownership and consumer spending, based on data from Bits of Stock.
Results were the following: consumers increase their monthly spending by 35.8 percent in the first month when offered stock rewards instead of cash. Each additional $1 in stock rewards increases monthly spending by a whopping $102. In contrast, receiving $1 in monetary rewards increases future spending by a mere 32 cents. “Stock rewards are dramatically more effective than cash and points because they’re aligned with economic and purchasing incentives, and have a more visceral, emotive and instinctive appeal as well, creating a deeper brand connection” noted Sundararajan. “Bits of Stock is pointing us to the future of loyalty programs.”