BrainTrust Query: American Express Small Business Saturday - Good for Independent Retailers
Through a special arrangement, presented here for discussion is a summary of a current article from the Retail Doctor's blog.
American Express is holding an event Saturday, Nov. 27 and they want shoppers to party at their local independent bricks & mortar shop or restaurant. There's something in it for everyone: the store, the customer, Facebook users and, yes, American Express.
Stores: By registering for Amex's promotion on its Facebook page at www.facebook.com/SmallBusinessSaturday, stores will receive a $100 credit for taking out a Facebook ad (the first 100,000 merchants who sign up). Amex also provides a video, articles and a PDF guide to using social media. Independents can also download a nifty window sign that shows they are participating. American Express is also asking people who visit the site to give a 'shout out' to their favorite local business via Twitter #SmallBizSat or their own Facebook page.
American Express customers: Cardholders get a $25 credit to their
account as long as they register their eligible American Express Card at www.smallbusinesssaturday.com prior
to Nov. 27 and use their registered 
AMEX card to spend $25 or more at participating
small business merchants on Nov. 27. Eligible merchants include any independently
owned small businesses that accepts the American Express Card.
Facebook users: Even if they don't own the card, if a Facebook user chooses to "Like" Small Business Saturday, American Express will donate up to $500,000 to Girls Inc. to teach young women to be the entrepreneurs of tomorrow.
American Express: For years, American Express has been shunned by some independent businesses due to the discount rate; since their handling charge is higher than Visa or MasterCard. When I was working in a retail store, the owner witnessed a customer about to buy nearly a grand of merch with an American Express card and we had to say, "Sorry, we don't take AMEX." The customer left without his purchase. We had American Express the next day. That owner saw the value of welcoming their affluent card carriers.
This is a great example of using a promotion to connect with customers using social media. American Express gets more merchants as a benefit and provides value to their cardholders. But their message is about how they will help grow their retail partner's business. That's the same message retailers want to have with their own customers: it's all about how they can help their customers do more, get more, be more with their help -- not constantly looking at their customers with dollar signs in their eyes.
Discussion Questions: What do you think of American Express' Small Business Saturday promotion? How beneficial is it for independent retailers? Which stakeholder group do you think will benefit the most/least from the promotion?