Turning a one-day event into a 365-day program

Jarrod Corbett + Dave Bourla

The ShopSmall App

Just after Thanksgiving 2010, American Express launched Small Business Saturday, a one-day event designed to drive shopping at small businesses. With a strong marketing campaign and considerable news coverage, this consumer holiday proved incredibly successful: For Businesses!- 27% of small businesses accepting American Express increased sales -100,000 SBOs downloaded promo material from AmEx’s Facebook page

For Consumers!- 100,000 Cardmembers who registered their Card and used it to shop that day received a $25 statement credit Social Media Usage!- 30,000 Tweets sent to alert consumers of participating stores - 1.4 million people have "liked" SBS on Facebook

Community Action!- 41 elected officials participated - 130 small business advocate groups & organizations joined in Beyond the numbers, the news and social media coverage reinforced how having a small business open on the street corner, rather than another bank or fast-food franchise, makes an entire community feel successful.

The History: Small Business Saturday

Having achieved this success, American Express was left with a new opportunity: to infuse the rest of the year with the ShopSmall spirit, making a 1-day event into a 365-day program — without relying on gimmicks that would devalue the American Express brand.

The Opportunity: Creating a Program

Over the past few years, several apps have put competitive fire behind a daily activity like running or photography and achieved remarkable results. We need do the same thing for small business shopping. Give it a competitive — yet overwhelmingly positive — spirit. Help the public see it as a good deed that’s worth sharing, worth publicizing, and worth being the best at. We need to make shopping small a huge achievement.

The Insight: Promoting an Achievement

Any plan to make small business shopping a promotable achievement will require us to: •  Help people find local small businesses. •  Reward consumers and remind them how their spending helps their communities. •  Give people a forum in which to share their successes and challenge their friends. If we find a solution that delivers on all these fronts, we can promote engagement throughout the year.

The Practical Side: Capitalizing on the Insight

Enter the solution: The ShopSmall App

Okay, an app – why?! Well, many people amongst our target audience use smartphones… …to shop. All right – so can one app help consumers feel they’re achieving something that’s worth sharing, small business owners get people in their doors, and American Express drive acquisition, spend, and positive branding? Yes. While still being simple, functional, and inspirational? Hell yes.

It is expected that half of the US population will use a Smartphone by the end of 2011. (Asymco.com, 2010)

Over half of consumers are using their smartphones to enhance their shopping experience, especially those under 35 (67%). (Source: Chadwick, Martin, Bailey and iModerate Research Technologies)

Let us show you how. Don’t worry, we’ll make this quick.

The Consumer Experience!with ShopSmall!

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

We offer a variety of ways to begin engaging with the app, driving downloads via:" • Facebook & Twitter • P.O.S. In-Store - QR Codes • OOH - QR Codes • AmEx Homepage • Sites within OPEN Network • OLA

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

Upon download, users are invited to link the app with various accounts: " • AmEx Card • Facebook • Twitter There will also be a tab for non-Cardmembers to apply for a card and get approved in 60 seconds.

The past financial quarter was the best performing in the 40-year history of [[Starbucks], according to [CEO Howard} Schultz. Starbucks cards now account for 22% of all transactions, he says. (Starbucks Card Mobile is a Hit, USA Today, March 23, 2011)

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

The search function links to the device’s GPS, so users can find participating small businesses nearby. Users can also search for nearby stores by type or by name.

62% of consumers use their smartphones to search for a store location or directions (2010 IDC Survey)

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

Cardmember

Non-Cardmember

Cardmembers and Non-Cardmembers have slightly different usage experiences when shopping. This lets everyone use the app, while incentivizing Card usage.

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

The search function links to the device’s GPS, so users can find participating small businesses nearby. Users can also search for nearby stores by type or by name.

62% of consumers use their smartphones to search for a store location or directions (2010 IDC Survey)

When a user enters a purchase into the app, a ShopSmall publicity message is automatically sent out to social networks. From the app, user can view total points compared to other participants, within an expanding radius based on user's location. Total and local results are also displayed via an adjustable dashboard on a tab within OPEN’s Facebook page.

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete Consumer Experience: ShopSmall Activate Set-Up Search Shop Share Compete

To add the competitive fire, users have opportunities to challenge their friends to shop small throughout the app experience. Challenges can be between individuals or extended to larger groups — couples challenging couples, co-workers challenging co-workers, entire cities can challenge each other. It’s all about seeing who supports their local small business community the most.

How everyone wins!

Consumers! Find stores where they can feel good about shopping. Earn rewards Feel a sense of achievement when they shop small Are able to share the achievement with others Feel good that they’re engaging in competition that has public benefit

SBOs! More people shopping at their stores Publicize their businesses through search and social media messages Associate themselves with the amount they add to communities

AmEx! Drive spending Drive frequency Drive acquisition More SBOs accepting the American Express Card An opportunity to use the app to promote events, initiatives, products, and advertisements. Establish a unique position amongst credit and charge cards as the principal driver of small businesses

How we measure success:! Increased Consumer Card acquisition Increased Consumer spend Increased Consumer Card usage Increased Card acceptance Facebook / Twitter Likes and Fans App downloads Free Media coverage App usage!

Care to add some layers?! Interactive Layer We could also add a more interactive, design-oriented feature, in which users build their own virtual communities. As a person uses the app more frequently, they add stores to their virtual community. These virtual businesses are based on actual OPEN clients ( “You’ve earned 136 commUnity points -- you can open a new store! Would you like a Zane’s Cycles or 16 Handles?). Over time, the user builds their city, learns more about small businesses -- and, sure, why not, has a little fun. Out of Home Interactive Experience / Out of Home Promotion For every app downloaded in the week before and including Small Business Saturday, American Express donates $1.00 to a seed fund. Aspiring small business owners from the general public will then be invited to submit entrepreneurial ideas to American Express. After a selection process that includes the public at large, one future business owner will be chosen to receive the seed fund and use it to start a small business. The winner will also receive access to the OPEN Forum, Business Center, and other American Express OPEN offerings, as well as other incentives from participating partners. Remember these are layers. Only layers.

So, it can be done — simply, elegantly, and inspirationally. The ShopSmall App can leverage technology to put a lofty idea into people’s hands; a sense of achievement behind people’s spending.   Search. Shop. Share. Support. Fun for one and all!

It’s just a very good idea to keep a reminder there that we need to support each other. Fred Meltzer - Owner, Hoffman’s Chocolates November 23, 2010

“ ”

Thank you :)