While the likes of Groupon and LivingSocial continue to promote daily deals via online coupons, American Express has joined hands with Twitter to do the same in a no-coupon, automated manner. The only effort American Express cardholders would need to make is getting their cards synchronized with their Twitter accounts. Every time, such folks Tweet using a series of hash-tags, discounted deals would be automatically uploaded on their cards.
This rather new concept is already engaging a lot of attention. The likes of Best Buy (BBY), 1-800-FLOWERS.com, H&M, The Cheesecake Factory, Whole Foods Market Zappos.com and Ticketmaster have already signed-up.
Savings directed towards the Tweeting, American Express cardholders is credited within a few days. Cardholders can also see the ongoing deals on the Twitter page of American Express.
Is this an Emerging Anti-Coupon Trend?
Yes, it seems that American Express is trying to present its partnership with Twitter as an undemanding alternative to coupon-oriented daily deals programs. The long-term success of this approach is under a bit of speculation right now. Most analysts opine that the union of Amex cardholders with their Twitter accounts is faced with a restrictive factor. This refers to the model being more sympathetic towards local deals. Thus, stores that insist upon serving their customers at the national level might not participate with great enthusiasm. It is also likely that everyone might not want to share their purchase(s) with the Twitter community. Social media experts believe that if the re-tweets get viral, the overwhelming response from the Twitter community might scare the purchaser.
The argument against this speculation arises from retailers who have managed to thrive without coupon-centric promotions. With discounted, online retail offers getting increasingly competitive, those providing discounts in an automated manner, like the Amex-Twitter partnership, might take precedence.
In all probability, it will take a few months before the viability of the simpler, Amex-Twitter platform emerges. Until then, it doesn’t seem like the coupon-centric, daily deals providers have anything to worry about.