Australia's largest companies could be about to reward they loyal customers, not with gift cards or bigger discounts but shares in the company.
Imagine ordering a family dinner at Domino's and being offered a number of shares in Domino's Pizza Enterprises Ltd (ASX: DMP) – the company that owns the brand in Australia. Or driving through McDonalds and being asked, "Do you want shares with that?"
According to news.com.au, Australia's biggest pizza chain is one of a number of companies considering a new customer rewards scheme – in conjunction with US disrupter Loyal3.
Domino's CEO Don Meij has told news.com.au that he's a big fan of Loyal3 – dubbed the 'Uber of Wall St'. Loyal3 chief executive Barry Schneider revealed his vision of companies around the world gifting shares to their favourite customers. "They'll gift it in return for a promotion – buy $100 worth of product, get $25 worth of stock," he said, adding, "We want to democratise the marketplace and make it easy and affordable for everyone to invest in the brands they love."
Loyal3 also offers a similar platform to OnMarket BookBuilds, allowing ordinary people to invest in shares cheaply and easily. News.com.au reports that GoPro and VirginAmerica used the platform during recent IPOs in the US, where investors can use it to buy shares in 66 of the US's largest and most well-known companies, including Apple, Facebook, Amazon and Berkshire Hathaway.
Woolworths Limited (ASX: WOW) and department store retailer David Jones are reportedly in the process of revamping their customer loyalty schemes, and could consider a partnership with a company like Loyal3.
The big win for companies is that customers who own a stake in the business will spend, on average, 54% than other customers, increase their patronage by 68% and refer twice as many friends, according to research by Bain & Co.
Companies already employ similar tactics to align their employees with the business through employee share schemes, who's to say they can't do the same thing with their customers?
Foolish takeaway
If the move takes off, it could revolutionise not only how we shop but also result in a massive increase in share-ownership and renewed interest in the stock market.
