American Express Gets Into Daily Deals
Street Smart Moves: The best or biggest deal, assertion, investment or other strategy this week.
Who: Credit card biggie American Express
What: Offering deals on Facebook based on users’ social graphs
Who isn’t getting into the daily deals space? That’s becoming a tough question to answer. The latest company to get on the bandwagon in AmEx — and it looks like they have some very intelligent twists on the concept that will help convince customers to spend more. That’s a perpetual business challenge — but especially when consumers are up to their necks in nearly indistinguishable bargains. American Express, which just shut down the years-old Daily Wish program that offered major discounts on products (in very limited numbers), is now basing its deals on Facebook. Cardholders who sign up for the “Link, Like, Love” program are offers deals that are chosen for them based on their profiles, ostensibly making them more appealing. Just as smart, there are no advance charges for the deals. They sign up for the deal — right now we’re looking at $5 off a $20 bill at Whole Foods–and get the discount when they use their AmEx card at the register. Three pain points — sifting through a pile of unwanted deals, putting cash up front that you potentially lose with an expiration date, and having to tote around vouches — have magically vanished. Meanwhile, retailers get to target their audience better. Groupon, Living Social, Bloomspot, et al. — are you listening?