Companies dole out stocks and ETFs as perks to loyal customers
Fractional shares and exchange traded funds are emerging as loyalty perks from companies looking to cash in on heightened interest in retail investing during a prolonged bull market.
The latest in the wave is telecoms company AT&T, whose pre-paid mobile phone carrier Cricket Wireless would contribute to investment accounts for customers who sign up through a new partnership with micro-investing app Acorns, executives said.
Already, companies including Lululemon Athletica, McDonald’s and Chevron have partnered with fintech companies such as Upstreet and Bumped to rebate to customers a small percentage of purchases in the form of fractional shares in the companies or in ETFs.
The incentives are meant to drive more repeat business. A recent study by Columbia Business School found that consumers spent 40 per cent more with companies after being given partial shares.
Stock trading has surged since the start of the pandemic as low-cost brokerages made it easy for people to invest the money they saved during lockdowns. Trades from self-directed investors more than doubled and account for more than 20 per cent of total share volume in 2021, according to data from Piper Sandler, a Wall Street broker. The free trading app Robinhood, popular with new younger investors, debuted on the Nasdaq last week with a valuation over $30bn.
