The New Way Brands Compete for Customers: Offering Up Their Stock
*By Michael Teich*
Brands are testing out a new strategy that would reward shoppers with free company stock in exchange for loyalty ー and a new start-up is helping them do it.
"It represents an entirely new mechanism of reward. If you think about all of the different types of rewards and incentives we have out there, you've got points, and you've got miles, and you got gift cards and cash back. There really hasn't been anything new in the past 20 or 30 years," Bumped founder and CEO David Nelsen said.
Bumped, a fintech app that tracks spending with certain participating publicly traded companies, gives customers a percentage of their purchases back in fractional shares of stock. If a shopper buys a handbag from Michael Kors ($KORS), for example, he or she will receive a marginal piece of company stock, instead of traditional points.
Nelsen said the incentive of stock ownership is more powerful than points, largely because it creates an affinity for the consumer.
"With cash back, you're really representing a reward that's not going to bring the consumer in. And if the consumer even does come back in, they're going to come in with the expectation of more discounts and a lesser price, which you don't want to be the case with a reward," he said.
Bumped hopes to pave the way for more consumers to gain access to the stock market ー after all, 50 percent of Americans currently don't participate in it, said Nelsen.
"That's part of the social mission. How can we give folks that think the stock market is for the elite, think the stock market isn't for them, a chance to participate?" Nelsen said.
Bumped, which launched in April, raised $14.7 million in a Series A funding in July. The app is currently in beta testing.
For full interview [click here](https://cheddar.com/videos/how-to-win-free-shares-of-your-favorite-brands).
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
