October 5, 2022
Shareholder loyalty is a phrase that’s been around a long time. Public companies have always tried to capture the loyalty of their shareholders, but before TiiCKER, it was an arduous, nearly impossible task to reward individual investors for their loyalty.
Smart publicly traded companies are beginning to recognize the power of the retail investor so they can capture shareholder loyalty and reward it, and for good reason. There are definite, measurable advantages to rewarding shareholders.
A national survey of more than 2,000 adults conducted by The Harris Poll commissioned by TiiCKER showed that 77% of individual investors would be more likely to buy shares of a publicly traded company if they were offered a shareholder perk, reward or product discount. This statistic plays out on TiiCKER every day where brands on the platform find that shareholders consistently add shares of the companies that reward them and hold those shares for longer periods.
Not only does shareholder loyalty drive individual investors to buy shares, it also prompts retail shareholders to buy products from the companies they are invested in. Share ownership can affect purchase behavior and brand loyalty with 80% of individual investors agreeing that being a shareholder in a retailer, consumer product company or brand would make them more likely to be a customer of that company or buy their products.
Simply put, investors buy from the companies they are invested in and the more loyal companies are to their retail shareholders, the more loyal those investors are to the brand. That is just one of the advantages of rewarding shareholder loyalty. Other advantages include:
Connecting with Your Brand’s Fans
TiiCKER is all about making connections between brands and the shareholders that love them. TiiCKER enables companies to engage, verify and incentivize consumer shareholders to better serve and understand their investors and maximize the lifetime value of their consumer shareholders.
Companies rarely have the opportunity to connect directly to retail shareholders. Many public companies that used to hold in-person annual shareholder meetings moved to virtual events during the pandemic and most seem to have no plans to return to in-person meetings. Companies like Starbucks (Tii:SBUX) and Amazon (Tii:AMZN), whose annual meetings used to attract thousands of investors in person are now online.
Rewarding shareholder loyalty directly connects investors with the brands they love. That matters since we know it can cost five to 25 times more to acquire a customer than sell to your existing ones. Rewarding shareholder loyalty can help companies keep its investors and customers engaged.
Communicating with Customers
Shareholder loyalty programs can help companies establish important communication channels with investors.
Real Good Foods (Tii:RGF) uses its shareholder rewards program, in part, to connect with its fans by offering them exclusive access to its new food products. Retail investors holding shares of Real Good Foods through a connected brokerage account on TiiCKER can sample the company’s new food products, which are delivered to their doorstep every month. Shareholders at that level are also eligible for a $500 Visa gift card.
Companies can also use shareholder loyalty to communicate important information about their brands. Whirlpool is a great example. Whirlpool shareholders receive up to 30% off its family of brands, which includes KitchenAid, Amana, Maytag, Whirlpool, JennAir, Hotpoint, Gladiator and more. Retail investors might not know that Whirlpool includes some of their favorite brands. This valuable shareholder perk helps its customers learn about all the brands under the Whirlpool umbrella.
Companies can use shareholder loyalty programs to learn about what their most devoted customers want, which can lead to increased sales. According to Harvard Business Review, companies with strong loyalty marketing programs generate revenues 2.5 times faster than their competitors.
Creating a Reputation for Caring
Let’s face it: Companies often fall flat when it comes to creating a culture of caring. If companies are not careful, consumers can feel like loyalty is a one-way street. Shareholder loyalty programs show consumers that the companies they like about care about them too.
A study by Wunderman Thompson found the majority (79%) of consumers said that brands must actually demonstrate that they understand and care about them before considering a purchase. In addition, 56% said they feel more loyal to brands who “get me” and show a deep understanding of their priorities and preferences.
According the data from a LoyaltyOne study, 94% of customers who received an unexpected reward or special recognition felt more optimistic about the company, and 34% of them said the experience led them to give the company more business.
Collaborating to Make Customers Feel Valued
Shareholder loyalty is a two-way street. Customers become fans of a company and its brand and in return they should feel the same sense of loyalty. When communication truly flows in both directions from customers to companies and back, it creates real collaboration.
And again, collaborating with customers makes them feel valued and results in shareholder loyalty. One way to create those channels is by offering individual investors rewards simply for owning shares in a company. Rewards can help a company gather customer feedback, which improves the overall customer experience.
Kimberly-Clark (Tii:KMB) connects and collaborates with its customers through TiiCKER. Shareholders with a single share in the company may purchase a gift box of samples from Kimberly-Clark brands at the discounted price of $25.99. It is a win-win situation: Shareholders receive a box filled with valuable products worth much more than the sticker price and Kimberly-Clark can connect with its customers on an individual basis.
So what are you waiting for? Whether you are an executive with a public company looking for more meaningful connections with your retail shareholders or are an individual investor hoping to find shareholder loyalty in your portfolio, look to TiiCKER. TiiCKER truly cares about making connections.
TiiCKER was created for fan-first, brand-first public companies—with exclusive perks served-up weekly to shareholders. Own stock? Connect your brokerage account to view more than 130 perks waiting for you right now!
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