Cost of living pressures doesn’t mean a loyalty program cannot be valuable to members. Bilt Rewards offers a unique loyalty program that rewards members with points for paying their rent, plus spending at a large network of dining, travel and fitness partners. Their unique design and success has caught the attention of both consumers and loyalty consultants globally. Their innovative approach to loyalty has caused a revolution in how people think about earning and redeeming points, particularly in the realm of rental payments.
The success of Bilt provides a compelling case study demonstrating that loyalty programs can work very effectively. By analysing Bilt’s strategy and results, loyalty program consultants can gain valuable insights into the broader landscape of loyalty program design and its role in shaping customer behaviour in the financial services industry (and beyond).
The Rise of Bilt Rewards
What is Bilt Rewards?
Bilt Rewards is a pioneering loyalty program that enables consumers to earn points on rent payments and daily neighbourhood spending, while creating a path to homeownership [1]. Launched in 2021, Bilt Rewards operates both a loyalty program and a co-brand credit card, the Bilt Mastercard, developed in partnership with Wells Fargo [2].
How Bilt Rewards works
Members can earn Bilt Points through various methods:
- Rent payments: Earn 1X Bilt Points on rent paid through the Bilt App, up to 100,000 points annually [3].
- Credit card spending: 3X points on dining, 2X on travel, and 1X on other purchases [4].
- Bilt Dining: Earn up to 10X points at partner restaurants in major U.S. cities [3].
- Lyft rides: Up to 5X points when linking Lyft and Bilt accounts [3].
Key features of the program
Bilt Rewards offers several standout features that make it a unique program. It allows users to pay rent with no transaction fees, helping them avoid extra costs. Additionally, Bilt helps members build their credit by reporting rent payments to all three major credit bureaus, aiding in credit score improvement. Members can also transfer points to 12 loyalty programs, giving them access to over 100 airlines and hotel partners. Finally, points can be redeemed in various ways, including for travel, fitness classes, Amazon purchases, or even rent credits, providing flexibility for users.
Success by filling a gap in the market
Bilt Rewards has experienced rapid growth, processing over $3 billion in annualised rent payments and $1.6 billion in annualised card spend within its first year [2]. The program’s success can be attributed to its innovative approach in addressing a significant gap in the market – rewarding renters for their largest monthly expense [5].
Driving engagement with the delivery of value
To enhance member engagement, Bilt Rewards offers elite status tiers that provide increasing benefits as users progress. Additionally, they host “Rent Day” promotions, where members can earn double points on non-rent spending categories, adding extra value. Bilt has also established partnerships with fitness studios and art collections, allowing members to redeem their points for unique experiences and offerings beyond traditional rewards.
The power of partnerships
Bilt has established key strategic partnerships to enhance its offerings. It has collaborated with major real estate owners to create the Bilt Alliance, a network covering over 3 million apartment units, providing exclusive benefits to renters. Additionally, Bilt partnered with Wells Fargo for the issuance of its credit card, allowing users to earn points on everyday purchases. Bilt also formed alliances with travel brands like Alaska Airlines, enabling members to transfer points for flights, and with local merchants to offer neighbourhood rewards, further broadening redemption options for members.
Boosting interactions with user-friendly technology
Bilt enhances the user experience with several innovative features. It offers a seamless rent payment system through the Bilt App, making rent transactions simple and convenient. Additionally, Bilt integrates with Banyan to provide item-level data capabilities, allowing for personalised rewards experiences tailored to individual users. The platform also includes a travel portal, where members can earn and redeem points on flights, hotels, and more.
Measuring Bilt’s Success
Growth in user base
Bilt Rewards has experienced remarkable growth since its launch in June 2021. The company’s resident loyalty program has expanded to nearly 4 million apartment units, including partnerships with seven of the ten largest multi-family owners in the country [10]. This growth addresses a critical need in the market, as rent represents the single largest expense for most Americans [11].
Increase in transaction volume
Bilt’s platform spend has surged to over $30 billion annually, representing a 50% increase [11]. This growth has been driven by the expansion of Bilt’s resident loyalty program and its venture into the condominium and Homeowners Association (HOA) market [12].
Valuation and funding rounds
Bilt has raised significant capital, with a $200 million round in January 2024 valuing the company at $3.1 billion [10]. Subsequently, Bilt secured an additional $150 million, led by Teachers’ Venture Growth, bringing its total funding to $563 million [13].
Long-term sustainability
Questions about Bilt’s long-term sustainability have arisen due to its unique business model. The company’s focus on rent payments, which generate no commission, and the potential loss on point disbursement raise concerns about profitability [15]. However, Bilt continues to expand its offerings, including plans to include mortgage payments and further develop its neighbourhood loyalty program [12].
“For any renter, the Bilt program is a no-brainer. Bilt allows you to capitalise on the routine rent payments you already make each month by earning points” – NBC Select
Conclusion
The Bilt Rewards program has made waves in the credit card industry, offering a fresh take on loyalty programs that resonates with renters and homeowners alike. Its innovative approach to rewarding rent payments, coupled with a wide range of redemption options, has led to rapid growth and substantial financial backing. The program’s success highlights the effectiveness of a loyalty program strategy that address a genuine market need and provides tangible value to members.
Looking ahead, Bilt’s journey serves as a case study for the power of loyalty programs to shape customer behaviour and drive engagement. While challenges remain, particularly in terms of long-term profitability, Bilt’s ability to adapt and expand its offerings suggests a promising future. As the financial services landscape continues to evolve, companies would do well to take note of Bilt’s strategy, focusing on delivering unique value propositions that meet the changing needs of consumers. Bilt represents an exceptional case study for loyalty consultants everywhere.
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References
[1] – https://newsroom.biltrewards.com/bilt-rewards-announces-strategic-partnership-with-alaska-airlines
[2] – https://newsroom.biltrewards.com/bilt-rewards-valued-at-1-5-billion
[3] – https://fortune.com/recommends/credit-cards/bilt-rewards-guide/
[4] – https://www.nerdwallet.com/article/travel/bilt-transfer-partners
[5] – https://thewisemarketer.com/the-bilt-rewards-story/
[6] – https://newsroom.biltrewards.com/bilt-rewards-alliance-and-thrive-communities-partner-to-enhance-resident-experience-across-pacific-northwest
[7] – https://www.nerdwallet.com/article/travel/bilt-rewards
[8] – https://letstalkloyalty.com/building-bilt-rewards-from-strength-to-strength/
[9] – https://www.pymnts.com/partnerships/2024/bilt-uses-banyan-item-level-data-capabilities-enhance-rewards-program/
[10] – https://techcrunch.com/2024/01/24/bilt-rewards-brings-in-200m-led-by-general-catalyst-doubles-valuation-to-3-1b/
[11] – https://www.morningstar.com/news/business-wire/20240802957679/bilt-rewards-secures-150-million-in-additional-funding-led-by-ontario-teachers-pension-plan-growth
[12] – https://newsroom.biltrewards.com/bilt-rewards-secures-150-million-in-additional-funding-led-by-ontario-teacher-s-pension-plan
[13] – https://skift.com/2024/08/03/bilt-rewards-raises-150-million-to-turn-rent-payments-into-travel-startup-funding-roundup/
[14] – https://www.linkedin.com/pulse/neals-deals-vol-68-bilt-rewards-credit-card-broke-bank-neal-mintz-qu5ff
[15] – https://medium.com/@shehryar.mudassir1234/bilt-rewards-a-look-1fd6bb5ed1aa
[16] – https://www.openloyalty.io/insider/bilt-rewards
