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“You didn’t just win a customer,

you won a a customer,

you won a a customer,

relationship.”

“ t h a nk you.”a n o t her s at isf ied

c u s t o mer .

“FiFty years On,

i never Leave HOme

witHOut it.”

“it’s not just about the

powerof the american express

card but the service and people

behind it.”

“i will alwa will alwaYs recommend recommend

american express xpress to everYone

i know.”

ServiceiS everyone’S job.

Frontline employees aren’t the only ones

responsible For creating the customer experience. everyone

in all areas oF the business plays a part.

W h a t p a r t d o y o u p l a y ?

summer

2008

in this issue

1

AXP Shorts/ on the road

Ken Chenault visits U.S. Service Centers.

/ update: American Express Partners in Preservation program.

/ green scene A grassroots team in the U.K. helps “switch” the company’s impact on the environment.

/ healthy rewards Membership Rewards makes a difference in Japan.

/ my Work space A Greensboro employee displays her NASCAR passion.

/ on top of the World Travel + Leisure readers rate the world’s best destinations, hotels, airlines and more for 2008.

6 Editor ’s Note

8 How Service Breeds SuccessCompanies that get service right are the ones that win — and keep — customers.

10Royal TreatmentHow American Express teams are working to give customers a consistently great experience.

14Driving SuccessMany colleagues at American Express worked together to win BMW’s consumer and corporate card business and create an unsurpassed customer experience.

20BRAND PowER: THE NEX T GENERATioN of SERvicE consulting the cardsThis second in a series about American Express’ unique assets looks at how we use information to better serve merchant partners.

24 Ask Me How i care Two service professionals — a veteran and a newer employee — talk about delivering for customers even in tougher times.

28Look who’s TalkingEmployees give their take on how not to wow customers.

summer 2008

Cover Art b e r n h a rd t Fu d y m a D e s ig n g ro u p

Editor c y n t h i a a q u i l a

Design b e r n h a rd t Fu d y m a D e s ig n g ro u p

Printer b a n n o n g ro u p l t d .

in print

shorts

c h a i r m a n a n d c e o Ke n c h e n a u l t t o u rs u . s . s e r v i c e c e n t e r fa c i l i t i e s a n d g re e t s e m p l o y e e s .

h e w a s j o i n e d by J i m b u s h , p re s i d e n t , u . s . s e r v i c e D e l i v e r y n e t w o r k ( t o p r i g h t ) .

on the Road with Ken chenaultk e n c h e n a u l t recently visited our service centers in Fort Lauderdale, Greensboro and Phoenix to help mark the 50th anniversary of the American Express Card.

During each two-day visit, Ken acknowl-edged our customer care professionals’ dedication to service and presented each center with a J.D. Power Award trophy. There are no better homes for these trophies since the award represents our top ranking in credit card customer satisfaction.

Ken also challenged all employees, no matter what job they hold, to be sure to always think about how their work ultimately affects our customers.

What Employees Had To Say“ Hearing Ken talk about service and leadership really helps me reinforce the importance of those messages with my direct reports. He shows employees that he values our contributions.”

—Stuart Berman Service Delivery Leader, AESC-Fort Lauderdale

“ Ken’s comments on changing customer expectations, and how we have to change as well, really struck me. I think we’re definitely on the right path for doing that. You could also tell that he really understands the challenges our frontline professionals face every day.”

—tina DaviS Service Delivery Leader, AESC-Greensboro

“Thank you for the things you do for our customers each and every day. . . .It shows your passion and commitment to delivering extraordinary customer care.” —ken chenault

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Partners in Preservation at a Glance

american express’ partnership with the u.s. national trust for historic preservation helps preserve and increase public awareness about environmental, historic and cultural landmarks. an advisory committee makes the final selection of winning projects, but the public also have a say by voting online for their favorites. here’s a snapshot of the program to date.

K i c K o F F

2 0 0 6t o ta l a m o u n t p l e D g e D

$ 5. 5 m i l l i o nover 5 years

lo c at i o n s > san Franc isco > chicago > new or leans

t o ta l a m o u n t F u n D e D t o D at e

$ 2 . 4 m i l l i o n

t o ta l n u m b e r o F p r o J e c t s a w a r D e D g r a n t s

3 3t o ta l v o t e s c a s t

4 1 4 , 3 9 9p o p u l a r v o t e w i n n e r s> First church of christ scientist in berkeley (san Francisco)> on leong merchant association bui lding /pui tak center (chicago)> st. James african methodist episcopal church (new orleans)** The public were invited to tell their stories online about their favorite nominated landmarks but were not asked to vote.

this year, we also took partners in preservation to sydney, australia, where we joined with the national trust of australia. grants totaling $136,000 (aus) were awarded to three sites: waverly cemetery gates (popular vote winner), mosman’s clifton gardens pool and wireless house in glebe. american express also donated 20 cents (aus) for every cardmember transaction at partici-pating merchants.

Update: American Express Partners in Preservation

Fi rs t c h u rc h o f c h r i s t s c i e n t i s t

s t . J a m e s a f r i c a n m e t h o d i s t e p i s c o p a l c h u rc h

o n le o n g m e rc h a n t

a s s o c i a t i o n b u i l d i n g / pu i ta k

c e n t e r

wa v e r l y c e m e t e r y g a t e s

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How can you switch your behavior to be more eco-friendly? Try these five actions recommended by the U.K. SWITCH team:

1. Switch off your monitor when leaving your desk to save more than 60 percent of the total energy used by your PC.

2. Eliminate paper “desk drops,” saving thousands of sheets of paper each year.

hAmish Alex AnderManager, Planning and Cross Channel Acquisition, International Consumer Card and Small Business Services/London

3. Don’t print unless you really need to. And then, print double-sided and in draft mode.

4. Say no to plastic bags. Bring your own reusable bag for lunch and skip the bag at check out.

5.Drink smart by using your own reusable mug or water bottle.

making the switch

a trip to the priStine Brazilian rain forest ignited Hamish Alexander’s passion for protecting the environment. Alexander is now putting that passion to work with the U.K. “SWITCH” team, a grassroots group formed to create greater eco-awareness among employees across the U.K. and help reduce the com-pany’s impact on the environment.

“The SWITCH team is about changing our behav-ior and switching off unnecessary power, like idle computers and lights in empty meeting rooms,” says Alexander. “When we come together as an American Express community, we realize we have the ability to help reduce our impact on the environment.”

Under Alexander’s lead and with support from senior leadership, SWITCH team members are working with AXP partners to pilot the use of biodegradable cleaning products for the office. The team is also working with partners to source renewable, or “green”, energy and source recycling facilities for our U.K. offices.

Employees are responding not only by turning off idle monitors and reducing their paper usage, but more than 50 people across the U.K. have asked to join the team and help drive SWITCH. —stacey orange

at st. James ame church in new orleans, the homeless find shelter, families come together to worship, and a community is enriched by the much-needed services this beloved landmark offers. that all changed after hurricane Katrina. the sanctuary has been closed, the congregation displaced and vital services hindered because of severe damage to the church from this violent storm. now, thanks to the latest american express partners in preservation initiative, st. James and four other historic sites are getting a new lease on life. american express, in partnership with the national trust for historic preservation, has awarded a total of $400,000 in grants for restoration projects in the city. the sites were chosen not only for their historic and cultural significance but also for the crucial role they play in bringing people together in neighbor-hoods hardest hit by hurricane Katrina. the stories people shared online (www.partnersinpreservation.org) reveal what these places truly have meant to the community.

/ g r e e n s c e n e /

In New Orleans, Community Matters

t h e F o l lo w i n g l a n D m a r K s w e r e a w a r D e D g r a n t s F o r s p e c i F i c repairs at each site

1) st. James african methodist episcopal church

2) st. alphonsus art & cultural center

3) st. augustine parish hall

4) odyssey house louisiana

5) lafayette cemetery no. 1

shorts

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6 , 0 0 06 , 0 0 06 , 0 0 0points .................

malaria treatmentsfor 1 person

1 , 5 0 0Healthy Rewardscardmembers in Japan enjoy popular membership rewards redemption items, such as electronics and dining vouchers, as much as anyone. but many of them are also using their mr points to help others. this year, 17 percent of all redemptions have been for charity, with polio vaccines for children as the top redemption choice among non-airline mr categories. through programs run by médecins du monde, an international humanitarian organization and a new mr partner, cardmembers can also use points to help provide malaria treatments and plastic surgery malaria treatments and plastic surgery malaria treatments and plastic surgery for children with facial deformities.for children with facial deformities.for children with facial deformities.

points .................

polio vaccines for 3 children

points .................

plastic surgery for 1 child

* 100,000 pts = 10,000,000 yen (approx. US$100,000)

1 0 0 , 0 0 0 *1 0 0 , 0 0 0 *1 0 0 , 0 0 0 *1 0 0 , 0 0 0 *1 0 0 , 0 0 0 *points1 0 0 , 0 0 0 *

points

1 7 %of total redemptions

go to charity

In Japan…

3 2 %of redemptions for 6,000 points and

under are for charity

PAGE _4

shorts

Six yearS ago, when Joy Savage’s daughter and

then future son-in-law took her to her first

NASCAR event, she had no idea what was in store. “With NASCAR, you either love it or hate it,” Joy

says. One look at Joy’s cubicle in Greensboro leaves no doubt which camp she’s in now. That first event

not only got Joy hooked on the sport, but it also made her an avid fan of driver Tony Stewart. Mugs,

photos, key chains, model cars — you name it, and Joy probably has it among the 50-plus items in her

collection of Stewart memorabilia. And that number keeps growing. Joy’s coworkers often return from

trips with a trinket or two to add to her display.

NASCAR event, she had no idea what was in store. “With NASCAR, you either love it or hate it,” Joy

fIrst purchase

An autographed Tony Stewart baseball cap

most prIzed possessIon

A photo of Stewart snapped by her daughter at Joy’s first event and signed by the man himself

most recent addItIon

An official replica of Stewart’s new Home Depot Toyota car

My work Space

Joy sAvAge, Director, Compliance and EthicsGreensboro, North Carolina

fIrst purchase most prIzed possess

on top of the Worldreaders of travel + Leisure picked Bangkok as best city and the Galapagos as best island for the magazine’s 2008 ravel + Leisure picked Bangkok as best city and the Galapagos as best island for the magazine’s 2008 ravel + LeisureWorld’s Best l ist. this was the first time both destinations won top honors. Last year ’s winners – florence and Bali – dropped to number five and number two, respectively. here are some highlights of the world’s best:

Best city Bangkok, thailandBest island Galapagos, ecuador

Best hotel singita sabi sand, south africa

Best international airline singapore airlines

Best domestic airline Virgin americaBest car-rental agency hertz

Best hotel for $250 or less domaine des hauts de Loire, france

for the full list go to www.travelandleisure.com

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It ’s the emotIon. that’s what struck me the most about the letters. We talk a lot at American express about the “special relationships” we have with our cardmembers. When you hear something often enough, it can lose meaning. But in their letters, the deep and genuine feelings cardmembers have for American express is undeniable. ¶“#1 My wife. #2 My American Express Card. Can’t get passionate about anything else.” ¶ What makes this comment especially gratifying is that it was written by one of the 12,000 cardmembers who have been with us since 1958. We plan to tell the stories of these very special people as we mark the 50th anniversary of the American express Card. so we asked them to share their experiences and proudest moments with us. And even though we didn’t ask, many who wrote in told us how passionately they feel about the Card and what American express has meant to them for 50 years. their comments — a few of which are included here — really bring to life the expression we use so often: “our legacy of service.” ¶While we have a lot to be proud of, that doesn’t mean American express knows everything about great service. We strive for courteous, personal attention that goes beyond cardmembers’ expectations, but we’re not perfect. We don’t always get it right. We know that consumers are more discriminating about where they place their loyalty, and it’s tougher than ever to win them over. that’s an even greater

i remember wel l reading about american express coming

out with a special type of card. i immediately appl ied and

was accepted. i have been extremely sat isf ied since then.

the world has changed and is now loaded with credit

and charge cards. to name one th ing that makes the

american express card superior to any other card is s imply

S e r v i c e . i f you have one of those other cards

. . . they don ’ t g ive a rat ’s behind.

Fifty years is a long t ime to belong to anything, but i fe l t that having the american express card always

made me feel as premium as the card is, and i s incerely thank american express for helping me

a c h i e v e my american dream.

my father was a charter cardmember. he believed in american express and passed down

his card to me. every time i paid for something he always said,

“ G o d b l e S S A m e r i c A n e x p r e S S.” my two daughters now use that expression, too.

Editor’s Note

PAGE _6PAGE _6

one day during my travels, i was reading an ad promoting a credit card . . . to pay hotel and restaurant bi l ls. i thought this was one

of the greatest ideas i had ever heard of. that is why 50 years ago i s igned up for the american express card. i t has been a

L o N G R E L AT i o N S H i P.i have put a lot of a ir l ine mi les and charged a lot of hotels and meals on the card.

i have cer tain ly enjoyed the service and relat ionship with american express.

amex has always been there for me. i was wintering in Florida a year ago, and the magnetic strip on my atm card wore out. my bank didn’t have a branch there and was of no help to me. i couldn’t get cash. amex took care of it in an instant. recently, on two occasions, i called and my request was greeted with “you are a charter member” and was

g i v e n s p e c i a L c a r e . you’re great and i love being a member.

thanks to american express for accepting this l i tt le country boy as a char ter member in 1958. i t has been a most

p l e A s A n t J o u r n e ywith no end in s ight .

challenge today as a bleak U.s. economy heightens consumers’ anxieties. ¶ over the past few years, we’ve been taking an even closer look at how we care for our customers to find out what great service means to them and what we need to improve. of course, that’s not just the responsibility of our frontline employees. As Ken Chenault and other senior leaders remind us, each of us needs to understand how the work we do ultimately affects our customers. ¶ this issue of Context begins with a look at what’s behind consumers’ higher expectations and how some other companies known for great service do what they do best. We then turn to how different American express teams are thinking about creating a great experience for their customers. next, the story behind the BmW consumer and corporate card win in Germany and Austria spotlights the many types of expertise and the overall coordination required to serve customers well. the second in our Brand Power series explores some of the ways we are honing the services we provide to merchants. Finally, two of our customer care professionals, an American express veteran and a newer employee, give us their take on the customer experience. ¶ For those moments when we all could use a little inspiration, here are some words of thanks from our Members Since 1958, to the people of American Express:

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Sources : Accen tu re 2007 G l oba l Cus tomer Sa t i s f ac t i on Su rvey Repor t ; Soc i e t y f o r New Commun ica t i ons 2008 s tudy : Exp l o r i ng t he L i nk Be tween Cus tomer Ca re and Brand Repu ta t i on ; Bus i ness Week , “Cus tomer Se rv i ce S tandou ts , ” Feb . 2 1 , 2008 . Bus i ness Week , “Cus tomer Se rv i ce S tandou ts , ” Feb . 2 1 , 2008 . Bus i ness Week

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royal treatmentAt American Express, viewing service through the lens of the total “customer experience.”b y J o n a t h a n S a p e r s

When rohit Bery thinks of extraordinary service, he thinks of ritz- carlton. during a dinner at one of the chain’s upscale hotels years ago, Bery, vice president, customer experience, told his waiter how much he liked the french fries. “they are the best french fries I’ve ever had,” he remembers saying.

from then on, every time he ate at a ritz-carlton, he always received — unsolicited — a 14-inch plate of fries, even in Bali where he went for his honeymoon. “That was incredible, it was really ridiculous — and i mean that in a good way,” Bery says.

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Top service providers know the sort of personalized attention Bery received

makes a lasting impression on customers, and also one they are highly likely

to share with everyone they know. Or even those they don’t know. Consider the

vast number of virtual communities where consumers can sing the praises of

— or do a hatchet job on — a company for how they are treated. With informa-

tion about products and services only a click away, consumers are much more

informed, which means that many expect much more from companies vying

for their business.

People already expect the extraordinary from American Express. And while

it’s nothing but a plus to be perceived in such a light, here’s another way to

look at it — we have to keep elevating our performance just to meet expecta-

tions. This is especially relevant now, as a stagnating U.S. economy creates

more anxiety for many cardmembers.

Over the past few years, we’ve been viewing service with a more critical eye

to find out where we need to improve, what counts as great service among

different kinds of customers, and how to best deliver the kind of differentiated

value and care that breeds loyalty.

T h e w h o l e ex p e r i e n c eAs Bery’s title suggests, our definition of service has expanded in recent

years to the broader concept of the customer “experience,” an appreciation

that there’s a lot more to service than a smooth transaction or courteous

interaction. Bery is part of a U.S. Service Delivery Network team led by

Senior Vice President Rosa Sabater that is charged with deconstructing the

customer experience and thinking about how all the pieces — everything

from offer development to customer outreach to billing — fit together.

“We’ve always been a company committed to being there for our custom-

ers, and that’s been part of our DNA for more than 150 years,” says Jim

Bush, executive vice president, U.S. Service Delivery Network (SDN). “What

we’re focused on today is making sure we understand how our customers’

needs and expectations evolve, and empowering our people to deliver for

them, at every point in their relationship with us.”

We’re on a similar quest in our international markets, where we have the

added challenge of understanding myriad cultures, regulations and issues

in each of the 21 markets we serve. “We need to be the eyes and ears of our

customers for our international business,” says Cynthia Valles, executive

vice president, Customer Service International (CSI). “In every market

and across every business, we are working with our business partners to

address issues and deliver extraordinary service that will distinguish our

brand in the marketplace.”

What follows is just a taste of some of the actions we’re taking in differ-

ent areas of our business to give customers a consistently great experience

with American Express.

B e n c h m a r k i n g t h e b e s tPart of our work in the U.S. has involved

researching other companies outside of

payments that are highly regarded for

their service — companies such as

Ritz-Carlton, Federal Express, Starbucks,

Southwest Airlines and Singa pore

Airlines. Learning more about how these

industry leaders care for their customers has helped confirm our own

thinking about improving the customer experience.

“One theme we’ve found is that service professionals are held in the highest

regard as the ‘voice of the company,’” says Rosa Sabater, who also heads the

SDN’s Learning Network. “And there’s a focus on removing the barriers that

prevent them from creating the best possible experience for the customer.”

Ritz-Carlton employees, for example, have the discretion to resolve a

guest’s problem regardless of their area of responsibility and are allowed

$1,000 each day per guest to make it right. Southwest Airlines employees

have something they call “two-level-up decisioning,” according to Aline

Kassabian, a director on Sabater’s team. “If you think your boss’ boss would

make a decision, you should make it. And if it turns out to be the wrong

decision, leadership will come and explain to you why it was the wrong

decision. You don’t get penalized,” she says.

Brand imagery is omnipresent in the workplaces of other service leaders.

Model airplanes with distinctive Southwest tails hang from the ceiling in

the lobby of that company’s headquarters, while each floor of Starbucks’

central offices has a coffee station, and new hires begin work with a shot of

a choice coffee. Messages reverberate. At Ritz-Carlton, employees from the

front lines to the executive suites can recite their customer principles.

American Express is highly regarded for service quality, and the pride

our employees feel in representing the company’s brand and values is

well-known. But by digging deeper into specific measures of satisfaction,

we also found room for improvement. Many of the other top service

companies across industries ranked higher than we did in areas such as

speed of resolving issues, ease of doing business and consistency of service.

Japanese cardmembers were embarrassed when they encountered a problem at the point of sale and had to discuss the issue over the merchant’s telephone. With merchant services, the team implemented a new process where we contact customers directly on their mobile phones.

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“Our benchmarking has helped us shape some of our service initiatives,

such as better supporting our customer care professionals so they feel moti-

vated and equipped to resolve cardmember issues on their own, without the

need to consult someone higher up,” Sabater says.

Customer care principles, which were introduced across the SDN last year,

help guide our service professionals in building relationships with custom ers.

We survey customers after every interaction to find out how satisfied

they were with the service they received and whether they’d recommend

American Express to a friend. Low ratings and customer complaints are

investigated to better understand the issues and help improve the customer

experience. And more customers are telling us they’d recommend American

Express to friends and family, which is the ultimate measure of success.

Both the SDN and CSI have also been making changes to improve work-

place flexibility, compensation and career-development opportunities, as

well as recognition and rewards that emphasize the importance of the role

of our customer-facing professionals. On tap for service professionals this

year: training that focuses on customer treatment and relationships as the

basic tenets of extraordinary customer care.

c u s t o m e r s s p e a k ; we l i s t e nAcross international markets, one of every two customers who complete

our satisfaction survey writes in a comment about their experience. These

comments provide the basis for improving our products, policies and service,

and for identifying ways to innovate. A year ago, CSI formalized a process for

gathering feedback, which it calls Voice of Customer. It has proven to be a

very effective method for raising issues that dissatisfy customers and giving

us a structured approach for resolving them.

The effort reinforced how cultural

differences require flexibility

from country to country. Japanese

cardmembers, for example, were

embarrassed when they encountered

a problem at the point of sale and

had to discuss the issue using the

merchant’s telephone.

“With our partners in Merchant Services, CSI implemented a new process

where we contact customers on their mobile phones instead of calling the

merchant. The customer can speak privately and not ‘lose face’ in front of

others,” says Nancy Carlin, vice president, CSI Customer Experience.

Working with partners in marketing, merchant servicing, risk manage-

ment and technologies, CSI colleagues are identifying and resolving the

biggest “pain points” of the customer experience in every market.

“The customer experience is not only about service over the phone but

about how we handle every touch point with the customer, including how

our products, policies and procedures actually work. Are they easy to under-

stand, and do they enable our customers to do what they desire, or are they

complicated and limiting?” Valles asks. Through Voice of Customer, we’re

listening and responding, and the results show it — more than a third of the

key issues identified have been resolved or improved.

T h i n k i n g l i ke c o n s u l t a n t sNo matter where they are or what they do, American Express cardmembers

all expect great service, but they have different ideas of what that looks like.

Small business customers, for example, are often on seasonal cycles, meaning

they may require more flexibility with credit. OPEN has tailored products for

them, such as the Plum Card, that offer options for paying sooner and getting

discounts, or deferring payments in months when cash flow is slower.

Customer care professionals who serve OPEN cardmembers receive special-

ized training so they can better understand the specific needs of, and solutions

for, small businesses. For example, asking an established customer to provide

additional financial information when applying for a credit increase can some-

times be a difficult conversation, according to Bery. “We’re making sure that

our service professionals know how to have this more consultative conversa-

tion. So they can help the cardmember understand what they need to do and

how it benefits them, as well as why we need the information.”

From small businesses to larger corporate and business travel clients,

serving our customers means finding ways to help them grow and prosper.

“Especially in today’s uncertain economy, our corporate clients need us more

than ever to help them be successful,” says Kelly Fisher, vice president, Global

Strategic Partnerships, Global Commercial Card.

Often, that means customizing solutions, such as analyzing and packaging

data that companies are required to report, or even providing guidance on the

best way to improve business operations.

Fisher sees every challenge a client presents as an opportunity to differenti-

ate our services. “Because we treat these relationships like partnerships, we’re

not successful if they’re not successful,” she adds.

smal l business customers are often on seasonal cycles, meaning they may require more f lex ib i l i ty with credi t . oPEN has tailored products for them that offer options for paying sooner and gett ing d iscounts,or deferr ing payment in months when cash f low is s lower.

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M a k i n g l i fe e a s i e r fo r b u s i n e s s t rave l e r sOur B2B client companies have high

expectations of American Express,

and so do their employees, who are

the end users of our products and

services. Business travelers today

often have more complex, multi-

country itineraries. Travel counsel-

ors need to be familiar with more

destinations than ever before, and

documentation requirements for

each country can challenge even the most seasoned traveler.

“Online booking tools are not particularly effective for complex, interna-

tional travel,” says Julie Bottner, senior vice president and general manager,

Global Operations for American Express Business Travel. “So it’s an opportu-

nity to differentiate American Express through the premium services of our

travel counselors. This has exponentially increased their skill requirements,

which is a challenge for us but also exciting for them.”

To meet that need, Business Travel is developing more sophisticated train-

ing and orientation programs to enhance travel counselors’ skills, both in

terms of booking expertise and destination knowledge.

Travelers are also dealing with more frequent disruptions as the airline

industry has cut flights and staff due to financial pressures. “Customers don’t

know all the reasons why things happen. All they know is that they need to

get to their destination, and they count on us to get them there,” Bottner adds.

Business Travel is working with airline partners to understand their inter-

nal operations and better coordinate logistics when flight disruptions occur.

“We want to know exactly what they will do and in what order. So when the

traveler calls us, we are in sync and can provide the best possible service to

our mutual customers,” Bottner says.

D r e a m s p e c i a l i s t sThe same is true in consumer travel, though here the challenges can be different.

“Many of our customers come to us to help plan their dream vacations,” says

Laurie Farquhar, vice president, Customer Experience and Service Capabilities,

Consumer Travel Network (CTN). “We spend a lot of time with them, either on

the phone or in person, and travel arrangements can be quite complex, requiring

a number of follow-ups. That relationship the travel counselor develops with the

customer is so critical to the overall American Express brand.”

The business has developed travel options tailored to customer tastes,

ranging from simple transactions that can be done online to exclusive luxury

escapes complete with private jets, yachts and villas. CTN is also piloting a

program for Centurion cardmembers that gives them access to a team of 10

to 15 travel counselors, each with a defined specialty.

“Our customers expect our counselors to know every place in the world,”

Farquhar says. “A travel counselor may be booking a trip to somewhere

they’ve never been, like Dubai, for example. But their teammate has just

returned from an extensive tour and has the expertise that’s needed.”

The ultimate goal is to create lifelong advocates and customers of American

Express. “It’s not just about travel — it’s about creating an unequaled and

memorable experience for customers from start to finish.”

T h e j o u r n ey c o n t i n u e sOur focus on improving the customer experience is already yielding

measurable results. Around the world, the percent of customers who rate

our service as excellent (and who would recommend American Express to a

friend) is significantly higher, retention of frontline employees is at industry-

leading levels, and operating expenses as a percentage of revenue are lower.

And feedback from our customer-facing professionals indicates they are

feeling more supported and engaged in their work.

We’re also hearing good things from independent sources. Last year,

American Express led all credit card issuers in customer satisfaction in a

J.D. Power survey. More recently, an MSN-Zogby survey of U.S. consumers

listed American Express among the top 10 service providers across a range

of industries.

“All of us at American Express identify deeply with our brand, and we’re

proud of our reputation for the way we take care of our customers,” says Jim

Bush. “At the same time, the vision of our company is to be the world’s most

respected service brand, not the world’s most respected credit card brand or the

world’s most respected financial services brand. We still have plenty to strive for.”

Cynthia Valles emphasizes, “Every interaction we have with our cardmem-

bers is an opportunity to influence the customer’s experience and reinforce

our brand. With the commitment of all of our International employees, CSI

is at the center of making this happen.”

So what will “service” look like down the road? Rohit Bery sees a day

when OPEN is routinely viewed by its customers as a key business advisor.

Laurie Farquhar has a vision of the CTN seamlessly anticipating customers’

vacation desires online, on the phone and in person. Julie Bottner imagines

delivering up-to-the-minute information right to travelers’ mobile devices.

Rosa Sabater adds that “this process of focusing on the end-to-end

experience really opened my eyes to what more we could do for our

company and our customers. I tell people all the time that I’m just awed

by the possibilities.”

a pilot program for centurion cardmembers gives them access to a team of 10 to 15 travel counselors, each with a defined specialty.

PAGE _13

PAGE _14

4

Both the BMW consumer

and corporate card

projects were intricate,

all-consuming efforts that

required the expertise

and coordination of many

American Express colleagues

in Germany and Austria.

Pictured, clockwise from

top: Simone Fischer,

manager, Membership

Rewards; Martin Ehret,

director, Acquisitions,

who led the consumer

cobrand project; and Heike

Hilf, director, Customer

Relationship Management.

PAGE _15

Last August, when BMW decided to discontinue its cobranded consumer card with MasterCard

and Visa and partner with American Express, it was a major win for the Blue Box in Germany and

Austria. The signing significantly boosted our market share in a highly competitive, lucrative region.

“It was difficult to grow in this market without the dominant player, Lufthansa, as an airline

partner,” says Werner Decker, vice president and general manager for Germany and Austria. “With

the existing Visa and MasterCard portfolio, and the prospect of reaching the entire BMW customer

base, this deal now opens the door to a sizable opportunity for us.”

And while the sales coup is impressive, the real story is how many colleagues at American

Express worked together to beat a highly competitive field for the BMW win and, ultimately, deliver

the kind of superior customer experience that both brands are known for.

“Everyone at American Express in Germany and Austria at some point worked on the BMW card

project,” says Martin Ehret, the Frankfurt-based director who led the project. “It was an intricate,

all-consuming effort.”

For more than a year, these American Express colleagues, some client-facing, most not, got to see

a lot of each other at frequent meetings, both at their offices and at BMW’s headquarters in Munich.

DRiviNG SUccESSTwo ToP GLoBAL BRANDS coLLABoRATE oN A cARD PRoGRAM BUiLT ARoUND THE cUSToMER EXPERiENcE. b y J u l i e M o l i n e

Besides the scale of the migration — the term for transitioning Visa or MasterCard card-

holders into BMW/American Express cardmembers — the project involved a considerable

amount of customization, which in turn required significant adjustments in technology, mar-

keting and fulfillment before the first card could be embossed.

The complexity was as daunting as it was exciting, Ehret says, especially since the

migration of more than 100,000 cards in Germany was expected to be completed only four

months after signing. “To BMW, one of our advantages is our expertise in process manage-

ment,” he explains, “so they were confident we could pull it off. Another advantage was that our

partner is a German manufacturing company, which approaches everything it does with the

mind-set, and precision, of an engineer.”

A network of project teams formed to address every aspect of the program and transition:

branding, manufacturing, integration, communications, marketing, Membership Rewards

(MR), finance, risk, legal, compliance, customer service, sales and relationship management.

Early in the program development stage, the network added a Global Commercial Card team

when BMW expressed interest in a cobranded corporate card (see sidebar on page 18).

Ph

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PAGE _16

Aligned brAnds, coordinAted strAtegy

Both American Express and BMW have customers of sim-

ilar backgrounds, and both have strong brand reputations

— factors that made the card partnership a good fit. But it

was American Express’ approach to the customer experi-

ence that especially intrigued BMW.

For BMW, the customer isn’t just a person who drives

a fast, gorgeous car. The customer drives an emotional

relationship with the automaker. “The car is a particular

point of pride for owners,” Ehret says. “And anything with

BMW branding, whether it’s a keychain or a credit card, is a

reminder of what the brand stands for: superb engineering;

a product someone is proud to have and use every day; a

statement about lifestyle and taste.”

In essence, BMW was looking for a card that was an

extension of all of those things. That’s why the end product

would have to be more than a traditional loyalty or store

payment card, especially since BMW was looking to be

an active partner in everything from customer service to

experiential marketing.

Convincing BMW of American Express’ expertise was

one thing. Convincing potential customers of the merits

of the card was another, largely because most of the BMW

cardholders were being asked to switch over to a provider

they hadn’t originally opted for. In Austria, there was an

additional hurdle since cardholders needed to apply for the

card before they could be migrated.

BMW expected some push-back, Ehret says. Some

customers might be concerned about whether their cards

would be welcomed in as many places. Some would simply

be resistant to change. Some would resent paying a higher

annual fee for an American Express card than for a Visa or

MasterCard. Whatever hurdles BMW foresaw, it was up to the

American Express team to devise a way to surmount them.

custom everything

Creating the optimal customer experience for the BMW/

American Express cardmember began with the plastic itself.

Since the accounts belonged to existing BMW customers,

BMW got the predominant branding. Instead of the words

American Express taking center stage, a close-up of the cir-

cular BMW logo dominates the card face, and the Blue Box

is in the lower right-hand corner. “It was important to put

aside the natural tendency to want to make the branding

more about us and recognize that the new cardmembers

would identify with BMW first,” Ehret explains.

Modifying the card design took some doing, since it

required sign-off from both the American Express branding

team and senior management, and this kind of “partner first”

imagery required an exception from our standard policy.

refining product elements

One of the biggest challenges for cobrand developers

was determining the features and benefits that would

appeal especially to drivers — and BMW car lovers

in particular.

For example, the team created a schutzbrief — schutz

means protection in German — to enhance the insurance

offer for the premium cards (Silver, Gold and Carbon). If

a cardmember’s BMW gets a flat tire or breaks down, they

can call for fast and free roadside towing to the closest

dealer for repair. And, in a nod to a country where speeds

on the autobahn often exceed 160 kph (100 mph), another

perk is legal liability insurance, so if a cardmember is

involved in an accident and the case comes to court, then

the insurance company will pay for legal representation.

The teams also took special care to leverage Member-

ship Rewards, according to Simone Fischer, MR manager.

“We spent quite a bit of time determining what the BMW

customer would especially appreciate,” and that also would

benefit BMW (through customer loyalty), its network of

independent dealers (through relationship building with

drivers) and American Express (through spend stimulation).

To begin with, that meant switching the focus away from

frequent-flier rewards and toward frequent-driver rewards.

“We couldn’t just duplicate the MR program for the Gold

Card,” she said. “It had to connect the card’s value proposi-

tion to the BMW product, the car.”

That’s why cardmembers get double points for spending

related to fuel, car washes and parking. It’s also why the MR

team worked directly with BMW dealers to establish mean-

ingful offers, such as double points on accessories and regular

maintenance visits. Drivers may soon be able to put their

lease payments on their cards as well. (Several customers

have already charged their car purchases on an American

Express card, earning tens of thousands of MR points.)

Another way to connect MR rewards to BMW cardmem-

bers is through BMW-oriented redemptions for things like

accessories and for using points to attend BMW-sponsored

events, from Formula One racing to sailing regattas.

Involving dealers in developing the Membership Rewards

program was a high priority, too. Because they’re indepen-

PAGE _17

Pictured, clockwise from top:

Peter Ostermoeller, director,

Customer Service Delivery for

Germany and Austria; Anita

Pruckner, head of consumer

card marketing for Austria;

and the Global Commercial

Card (GCC) team, BB Roy, vice

president of sales, GCC Europe;

Torsten Schimpf, director,

Sales; and Remco Flipsen,

director, Sales, who led the

commercial card initiative in

Germany.P

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PAGE _18

dent rather than company-owned, each dealership

can decide whether to accept American Express

cards, Ehret says. “It was essential we get their buy-in

to the whole cobrand idea, because it definitely

would have been a problem if a dealer didn’t accept

the American Express card with a BMW logo on it.

But from what the Merchant Services team is telling

us, the dealers are quite pleased.”

Dealers also are an important distribution

channel for new cardmembers. “They are really

part of the BMW owner’s experience, since they

regularly communicate and interact with owners,”

Ehret points out. “Having them promote the card

enhances our credibility and gives dealers a stake in

our success.”

Since the loyalty program is such an essential

part of the customer experience, “there’s a big drive

to encourage migration cardmembers to sign up for

MR right from the start,” Fischer says. That means

including information about Membership Rewards

in virtually every BMW cardmember communica-

tion, as well as coming up with enticing offers — like

valuable vouchers that can be applied to purchases

at dealerships and even an option to redeem points

for a BMW car — to encourage spending on the card

and point redemption.

substAnce … And gloss

Long before the new BMW/American Express card

arrived in a specially designed, glossy jacket, cus-

tomers were well aware of what was coming.

Migrating nearly 100,000 consumers would

require detailed explanations — not just the whys

and wherefores of the switchover, but how the

migration would actually work, what the new card

would offer and why it was so appealing.

BMW was especially concerned about the way the

customers would respond to having their card pro-

vider switched, says Heike Hilf, director, Customer

Relationship Management.

Both partners collaborated closely on the

campaign. “Communication-wise, the effort

has been extraordinarily 360,” Hilf says. “We

ended up creating our own corporate identity

for joint communications from BMW and Amex.

Creative teams from both companies were

Engineered with Precision: THE CORPORATE COMPONENTif signing the consumer card deal was all about brand alignment, the corporate card win was all

about expectation alignment expectation alignment expectation — showing that American express could deliver to bmW precisely

what an outspoken rival said the company could not, and more.

At first, it seemed that adding a corporate card component onto the cobranded consumer

card program was out of the question. bmW had just renewed a five-year contract with

American express’ main corporate card competitor in germany, lufthansa Air plus. “basically,

we were faced with a client who was highly motivated to stay with the incumbent,” says remco

flipsen, director of sales for global commercial card, europe.

convincing bmW that American express could provide a superior customer experience

required deft powers of persuasion. flipsen and his team made the case for American

express’ global reach, an important asset for an organization with operations in more than 30

countries. but what really helped win the client over was the team’s painstaking approach to

understanding bmW procurement and expense management needs.

the American express team examined travel data with the same zeal and rigor that bmW’s

engineers bring to their design process. that meant scrutinizing all of bmW’s corporate

requirements for accounting, finance, tax reporting, staffing, travel management, procurement

and labor relations (highly regulated in germany). members of cross-functional teams

ultimately demonstrated how American express could provide solutions more far-reaching,

and more practicable, than Air plus could ever hope to offer.

When it became clear, for example, that American express needed to custom-design

a software solution to improve the way data is integrated into bmW’s unique accounting

systems, senior management approved the necessary funding — a move that resulted in other

benefits, too, like a new suite of superior information management offerings for the broader

german market, says bb roy, vice president of sales, gcc europe.

“We worked point by point until everyone at bmW agreed that we would be able to match,

deliver and exceed all of its requirements for a corporate t&t&t e card payment system,” flipsen says.

the signing of a longtime holdout was sweet: With 22,000 employees, bmW is an important

new client, not just because of the value of the deal, but because of the automaker’s reputation

for thorough vetting of suppliers.

“bmW wants to know how things work, in detail; they are focused first on perfection and

then on money,” flipsen says. When it came to implementation, that perfectionism meant run-

ning a test to see how the business travel account and card accounts would work.

All that focus on detail and testing paid off with an auspicious beginning to the bmW/American

express relationship — and one that roy says bmW is already interested in expanding.

“it’s truly a partnership,” says philipp Arbter, product manager at bmW financial services.

“the American express team made it quite easy for us to work together. And we’re very

satisfied with the progress we are making and the response from our customers.”

PAGE _19

working from the same set of visual and copy

standards.” For continuity — and authenticity

— BMW gave American Express access to its

images and participated in every key marketing

communication decision.

“We all wanted to be very sure that these cus-

tomers weren’t swamped with information,” Hilf

says. An integrated marketing calendar outlined

the contact strategy for all kinds of cardmembers:

migration or new; an early rejecter of the new card;

a dealer or BMW employee; a cardmember with

a premium card. Then it delineated which party

— BMW Bank, which was relinquishing the card

business, BMW or American Express — would be

sending material.

To make a great first impression, the welcome

package included plenty of enticements. For migra-

tion customers, the carrot was a four-month series

of vouchers for up to 20 euros off purchases made

with the card at 10 upscale merchants. “Besides

the attractive incentive, there was another subtle

message here,” Ehret says. “We were looking for an

elegant way to tell customers about our wide variety

of merchant partners in the market.”

Merchant Services International colleagues

worked with the Customer Relationship Manage-

ment team to select the merchants for the premier

set of vouchers. They identified upscale providers

in categories like travel, sports, fashion, jewelry,

booksellers, dining, theater and department stores

to show cardmembers, rather than tell them, that

American Express is accepted everywhere they

would want to use their cards.

the personAl touch

And what of the customer experience when it comes

to customer service? There was an intense focus service? There was an intense focus service?

on training in the call center in Germany, where

a number of service professionals were added to

handle the additional call volume.

“There was a lot of discussion not just about how

many rings before pickup were allowed, or about

content for scripts, but about the more subjective

aspects of a call,” says Peter Ostermoeller, a director

of customer service delivery for Germany and Aus-

tria. “Tone of voice, level of formality, even how to

say hello and goodbye, and when it is appropriate to

engage the caller in conversation that’s not directly

related to the question or issue one was calling

about — we discussed all of this with our service

professionals, and BMW was very much involved.”

Properly setting the stage at the call center was

especially critical for the migration cardmembers,

who could activate their cards only with the assis-

tance of a service professional. The idea was to begin

the new customer relationship with highly personal-

ized service — making referrals to nearby merchants,

for example, or mentioning special offers.

One challenge to reckon with was that BMW and

American Express don’t measure service quality in

identical ways. Where we typically look at direct

feedback from customers, BMW wants to do the

testing itself — using secret shoppers, or posing

as cardmembers and calling the customer service

line. “In the end, we both made some adjustments,”

Ostermoeller says. “The goal was for the customer

experience to be of the same high quality whether

they are calling us or BMW.”

initiAl results: Wundervoll

While the “customer experience” may be something

of a qualitative concept, in this case, it is helping

drive the kind of hard data needed to measure

success. And, so far, early metrics have comfortably

exceeded projections from both American Express

and BMW. Activation is strong, and more than 70

percent of transferred cards have been used in the

first month. There’s low attrition, high Membership

Rewards opt-ins and healthy spend volume more

than 40 percent above initial expectations.

The new card is also attracting entirely new cus-

tomers, many through the dealer channel. And, already,

MR point fanatics are emerging — another sign that

the program is resonating with consumers, Hilf says.

Martin Ehret still has regular, weekly meetings

with his BMW colleagues. And, he says, this thriving

partnership has paid a bonus dividend: sparking the

interest of other German companies that want to

copy the BMW cobrand card story. “Whenever you

have a win like this, where a team pulls together to

produce a great result, it’s obviously very satisfying

for all involved,” Decker says. “But when we can rep-

licate and build on the experience, that’s invaluable.”

C onsult ing the Cards a new take on doing business with merchants.

By chriStine meyer-oertel

B r a n d P o w e r : T h e n e x T G e n e r a T i o n o f s e r v i c ea context serIes on the unIque capaBILItIes that make amerIcan express

more than Just a payments company.

PAGE _20

PAGE _21

IF YOU WERE A MERCHANT looking to expand your business, you’d probably be asking

yourself some very important questions: Do I really know who my customers are? Do

I fully understand what they most want and need? How much of their business are my

competitors getting — and why?

To help bring the answers to light, you could hire consultants who are marketing

experts. Then again, they may know little about your particular business or customers.

Or you could contact an unexpected resource: your card com-

pany — that is, if you’re a merchant that welcomes American

Express cards.

Last year, the Global Information Insights (GI2) team helped

thousands of businesses learn more about their customers

and their opportunities for growth. The source of these new

insights is a comprehensive set of reports that represent the

next generation of services American Express can provide to

merchant partners.

“We’ve created a unique space in terms of the information

we collect and what we’re able to do with it,” says Vice Presi-

dent Ayesha Almeida, who heads the GI2 team within Global

Merchant Services.

The information she’s referring to comes from four sources

— cardmembers, transactions, merchants and publicly avail-

able sources — and it’s a potent advantage of our closed-loop

network. Since we have relationships with both cardmem-

bers and merchants, we get information from both sides of

a transaction. Information that helps us understand where,

when and how often cardmembers spend, whether with

American Express products or with other forms of payment.

“We still provide marketing tools to help drive customers

to a merchant, as we’ve done for a long time, but the role

we’re now playing adds so much more value — and mer-

chants can see it,” Almeida says.

W h a t m e r c h a n t s w a n t t o k n o wSINCE 2006 , small merchants with a dedicated account

manager have been able to request one of several standard-

W hen Seasons 52, an upscale casual dining chain, was deciding on new locations

for expansion last summer, it turned to American Express for advice. The restau-

rant, which offers a seasonal, lower-calorie, fresh grill menu, had already opened

seven locations in florida and Georgia, and was set to add three new locations a year.

Having selected 15 markets for consideration, the cEo had two questions: where should we

expand, and how should the chain position itself in those new markets? Answering these ques-

tions involved a “full immersion into their operations and their business goals,” says Joe Kosta,

director, Business insights, who led the project.

first, the team looked at existing Seasons 52 restaurants to determine customers’ average

drive time to those locations. This information was the basis for mapping out trade areas, a

perimeter around proposed locations to help determine which have the highest concentration

of potential customers. within each area, they analyzed the number of card accounts most

likely to dine at upscale casual restaurants; the total spending at full-service restaurants near

the proposed locations; and the total spending from local cardmembers in those cities.

The team also analyzed the competition in each market. offering a fresh grill menu, Seasons

52 is not easily categorized, Kosta found. “Because the chain straddles two dining categories,

we mapped two groups of competitors: upscale casual dining and fine dining /steakhouse

restaurants.” This gave Seasons 52 an understanding of which markets could support their

restaurant and which were oversaturated with similar types of restaurants.

The site analysis revealed four cities that offered the best opportunities. it also confirmed

Seasons 52’s upscale marketing strategy with a recommendation to open restaurants near

high-end grocery and clothing stores, since Seasons 52 customers have a high affinity for

these two retail categories. opportunities to develop joint marketing programs between the

restaurant and the upscale retailers were also flagged.

“Seasons 52 valued our suggestions because of American

Express’ brand reputation and the trust we were able to build,”

Kosta notes. The cEo is now reviewing the recommendations with

the board of directors. The positive feedback on this project has

also spread within Seasons 52 parent Darden Restaurants, one

of the world’s largest casual dining chains, which also includes

popular venues such as Red Lobster and olive Garden.

Retailers can analyze profiles of customers who shop “down the street”

and learn how to win more of their business.

seasons 52 a G r a n d o P e n i n G

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PAGE _22

ized reports that offer insights into cardmember spending patterns, industry trends,

effective marketing channels, characteristics of potential customers, and the market-

places that represent the best opportunities for growth.

These reports are available at no charge, in less than 24 hours. Account managers typi-

cally deliver results in person or over the phone.

Large merchants looking for answers to specific questions can take a deeper dive into

the data with a more sophisticated set of customized reports. For example, retailers can

analyze profiles of customers who shop “down the street” and learn how to win more of

their business. Or a merchant with multiple brands can see whether customers have any

affinity, or common attraction, across those brands.

A s k i n g f o r m o r eAS MERCHANTS have become more familiar with our data

capabilities and the insights American Express can provide,

they have asked for even more. Not simply more informa-

tion, but more help in analyzing the specific business issues

they’re facing. And they are willing to pay for that help.

Enter the GI2 Business Insights team, which focuses mainly

on retail, emerging industries, travel and entertainment.

Last year, the team produced custom analyses for 100 U.S.

merchants and more than a dozen merchants outside the

U.S. — and demand is increasing.

To date, team members have advised a major retailer on

where to open a new store, helped an association of mer-

chants understand customer buying patterns and shown a

retail giant how its online customers differ from its in-store

shoppers. The group has also been instrumental in helping

sign and retain merchants. Contracts for both a major super-

market chain and a discount retailer included obligations for

American Express to deliver in-depth customer analyses.

Working closely with client management teams, GI2

concentrates on large accounts — merchants that tend to

have resources dedicated to growth strategies. “They may

be making a $30 million investment to open new locations,

D ata has proven to be a dynamic relationship builder for American Express in Napa val-

ley, california. This region is home to more than 300 wineries, ranging in size from small,

family-owned vineyards to comparatively large-scale operations like Beringer vineyards

and Robert Mondavi winery. Marketing Napa valley as a region for wine experts and a tourist desti-

nation, the Napa valley vintners form a tight-knit community. They’re also aligned in their interest to

know more about their customers and prospects.

in recent years, wine sales directly shipped to consumers, whether bought online or at the winery,

have been expanding across the U.S. American Express Merchant Services recommended Global

information insights to help the vintners better understand their customers and how they purchase.

“Being a nonprofit organization, we don’t have the kinds of resources needed for research,” says

Stacey Dolan capitani, marketing and promotions managing director for the Napa valley vintners

Association. “So this was a fabulous opportunity to get key information that we could pass on to our

members and use to reach customers more effectively.”

The report showed the vintners their top local customer segments and other retail brands that

were attracting the same type of customer — useful information for determining possible joint mar-

keting initiatives.

Although the majority of cardmembers purchased at the wineries, customers who purchased

both on-site and online had a much higher transaction size. These “dual shoppers” represented only

11 percent of the vintners’ client base but accounted for 41 percent of

spending. A targeted marketing campaign directed to those individuals

would make sense, the report concluded.

American Express representatives have since been headliners

at local conferences to share the findings. “At one presentation, we

spoke to about 200 wineries, only about 15 percent of which were

not merchant partners.” Kosta recalls. “it was practically a sales

presentation for them since we were showing them what American

Express can offer.” Since then, many of those vintners now accept our

cards. capitani adds that the study was so well received the association’s

members are eager for even more of this kind of information.

Globalization offers an obvious expansion path. This advance will make it possible to offer merchants a global analysis of their entire American Express spending and opportunity.

napa valley vintnerS aSSociation

a T a s T e o f w i n e c o u n T r y

PAGE _23

for example, and they’re looking to us for advice,” says Ryan Manville, vice president,

Business Insights. “In the past, we might have talked to them about a one-time mar-

keting initiative. Now the scale of what we’re doing is much greater and significantly

more valuable to the merchant.”

As the GI2 effort has expanded in the U.S., there’s also been a steady groundswell

of interest among merchants in other markets, Almeida says. Established last year,

the International team now offers automated reports in 17 markets, with most of the

analytical work supported by a team based in Singapore. The more customized studies

have been limited to select merchants in Australia and the U.K. This will change soon,

as the team expands its technology capabilities.

“We know there’s tremendous opportunity in expanding internationally,” says

Nadine Davey-Rogers, vice president, International Information Insights. “Already,

we’ve seen huge benefits in Australia and the European market.”

O n t h e h o r i z o nFUTURE INITIATIVES point to many more I’s: more informa-

tion, more insights, more international, more innovation.

Data collection and analysis is slated to become more

automated, which will lead to better, deeper information to

feed the core and custom studies. “With continued automa-

tion, we can expand the number of merchants we influence,

focus our people on the most customized of custom products

and deliver strategic consulting,” Almeida says.

Globalization offers an obvious expansion path. This

advance will make it possible to offer merchant partners a

global analysis of their entire American Express spending

and opportunity.

Other ideas that are taking shape include aggregating

data across a specific industry and providing deep analyses

of spending trends that groups of merchants can leverage.

This project, which has received an initial round of funding

from Ken Chenault’s Innovation Fund, is one of many long-

term strategies that aim to enhance the value of our informa-

tion management.

However the expansion projects play out, it’s clear that

our data capabilities are moving from the back office to

the front desk. Analysts within GI2 are doing more than

crunching numbers. They’re helping merchants make sense

of the results, deepening relationships and even creating a

new revenue stream in the process.

“Information management has always been a strong asset

for American Express because of our closed loop,” Almeida

says. “The more we work with our data, the more we realize

that there’s so much more the numbers can tell us — and that’s

really exciting for both us and our partners.”

H aving received an in-depth customer analysis from American Express in 2006, Maybourne

Hotel Group turned to Global information insights once again last fall. its objective: growth

opportunities for premium properties in London, a competitive upscale hotel environment. The

company wanted to ensure it was targeting the right customers, finding opportunities to capture more of

the business of existing American Express customers, and exploring ways to attract new cardmembers.

The international team’s analysis offered detailed demographics for three of the hotel group’s

properties: claridges, The Berkley and The connaught. The results confirmed much of Maybourne’s

internal analysis of its customer demographics, but it also yielded some new insights.

in analyzing the potential for new customers, the team was able to show that the properties were

attracting slightly different client bases. Although guests from the U.S. represented the largest

customer group for all three hotels, The Berkley appealed to a large proportion of guests from Brazil

and Hong Kong. Knowing where its customers are from can help inform how to tailor services, as

well as where to invest in marketing promotions.

“one interesting finding was that their customers tend to be loyal to one property, which is driven

by the character of the hotel,” says christine chia, director of customer insights who supervised the

project. “it reaffirmed for them that there is value in maintaining and marketing that distinct character.”

An analysis of “industry outspend” — where customers spend when they leave those hotels —

indicated a number of retail categories, notably high-end department stores, that are proving to fit

well as promotional partners. The analysis also showed that customers are spending in other local

hotels, so incentives encouraging guests to dine more often or stay longer at one of the Maybourne

hotels might be very effective.

“The insights about customers’ spending with competitors and in other industries have been par-

ticularly valuable,” says Nicki Granger, customer Relationship Management for Maybourne Hotel

Group. “we are about to launch a joint marketing promotion with two of London’s top department

stores, which is something we wouldn’t have been able to do without this research.”

maybourne hotel group

h o T e l a c c o m m o d a T i o n s

PAGE _24

ask me howicare

Two American Express customer care professionals — one long-tenured, one newer to the company — talk to each other about the customer care experience.

MITHOO MALANI Customer Care ProfessionalRisk Customer Servicing NetworkFort Lauderdale, Florida

Mithoo jo ined Amer ican Express in 2005.He works as a cred i t Ana lyst in the R isk customer Ser v ic ing Network, where he makes author izat ion dec is ions to suppor t our cardmembers and the c o m p a ny.

MITHOO: Well, Carmen, I’m curious

to hear about what it was like when

you started at American Express.

What changes have you seen over

the years?

cArmen: in the old days, American

Express had only three products, all

charge cards. Now we have many —

charge, credit, small business cards. i

have to know all of my products inside

out because i never know which one

the cardmember is calling about.

it’s also important to be able to tell

customers what other products or

services may be suitable for them.

Here’s another big difference.

when i started out in the Risk

customer Servicing Network,

everything was paper-based. So

things like setting up a dispute or

removing a hold on an account

or even something as simple as

changing an address took a lot

longer. Now everything is done

online. Say a cardmember calls

to check if a charge has hit their

statement. Before, we would have

to pull the file and send them a copy

of the statement, which could have

taken up to a week or more. Now

i can check their account while

they’re on the phone. i’m able to walk

them through step-by-step to make

sure they have what they need. And

they can print out their statements

whenever they want. Being able to

help them so quickly makes them

happier, more satisfied customers.

MITHOO: Are there any changes

that have been particularly

challenging?

cArmen: one thing we have today

that we didn’t years ago is our

TBASS survey. it ’s sometimes a

challenge to be measured for every

interaction by how satisfied the

customer is, particularly when

you’re dealing with a difficult

situation. in a very short time

frame, we’re expected to get to

know our customers, adapt to

their needs and solve their issues.

Sometimes that doesn’t go as

smoothly as we would l ike. But

it ’s important to do what we can

to make sure our customers are

satisfied. it directly affects the

well-being of our company and

how we can be better than the

competition.

And i can honestly say my past

seven years in customer focused

Sales have been the best time

of my career here at American

Express. Every interaction i have

with a customer is a chance to help

them. And by introducing them to

other products or services that are

beneficial to them, we’re increasing

the l ikelihood that they’l l choose

American Express every time they

pull out their wallet.

PAGE _25

c A r m e n s u A r e z Customer Care ProfessionalCustomer Focused SalesFort Lauderdale, Florida

carmen works in customer focused Sa les, where she he lps h igh-spending cardmembers wi th issues re lat ing to dozens of card products. She has ser ved our customers for 22 years.

c ACustomer Care ProfessionalCustomer Focused SalesFort Lauderdale, Florida

Ph

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PAGE _26

MITHOO: How have you been

able to keep your skills fresh

through the years, without relying

so much on “This is how we’ve

always done it”?

cArmen: change can be difficult.

i think it’s important to keep an open

mind. That’s the only way you can

continue to grow. in my job, the

more i know, the more successful

i am. if i don’t know my products

and their benefits, or don’t under-

stand how a change is import ant —

not only to the company but to

the customer — then i’m not doing

my job.

MITHOO: I had a fair amount of

work experience before coming to

American Express, and possibly

have been in the workforce longer

than you. But whenever you move

to a new company, you’re always

looking for someone who can

show you the ropes. You started

out in credit operations where

I am now, so you know what it’s

like and how it has changed. If

you were my mentor, what advice

would you give me to help me be

more effective?

cArmen: when you’re dealing with

customers every day, you’re faced

with such a variety of personalities in

sometimes stressful situations. And

different customers have different

expectations. You have to learn to

adapt to each person and really

listen to what they need. That’s such

an important factor to the success

of the call.

The customer has to know that we

empathize with them and value their

business whether times are good or

bad. when they are having difficulties,

we want to show them that we are

willing to work with them. we want to

keep the relationship strong. when

you’re in the situation where you’re

collecting money, whether it’s a bad

check or the account is late, it’s

likely that customer may have other

accounts that are overdue. By making

a connection with them and helping

them, hopefully they will want to pay

their American Express bill first....and

ultimately still have that card in their

wallet when their situation is better.

MITHOO: That’s a good point.

It’s very important to keep the

business relationship with our

cardmembers especially when they

are going through a difficult time.

That’s so true in today’s economy

when more people are having trou-

ble paying their bills. However,

even though we understand there

are reasons for their situation

and will work with them, we still

have a responsibility to collect the

funds. It’s important they show us

they are making a good faith effort

to pay us.

cArmen: what i have found has

helped me is to remember that i’m

also a cardmember and to try to look

at the situation like a customer. i

might say, “i have an account, too.

i know exactly how you feel right

now. i’ve had this happen before.

we want to help you, but you also

have to realize that we have to

make decisions that are best for

the company as well. So you need

to show us that you are will ing to

work with us.” i think the best thing

we can do is let them know we

are on their side and to help them

understand what they need to do to

correct the situation.

MITHOO: Yes. And I really appreci-

ate the authority I have to make

decisions about how to help the

customer. Cardmembers call us

when they have a problem using

their card. They don’t really

care if the system is down or if a

payment hasn’t hit their account

yet. They want to know how soon

they will be able to make that

purchase. I can authorize a one-

time charge for a cardmember

even though there is a hold on the

account. Maybe the cardmember

is trying to rent a car to get to an

important meeting. I can allow

that charge to go through if I

think it’s appropriate. It makes

me feel good to be able to do that.

You said earlier that you try to

adapt to each cardmember and

really listen to their needs in

order to best help them. Have you

found that humor comes in handy

in a difficult situation?

cArme n: i ’m not comfortable being

the one to initiate humor, because

you never know how the customer

is going to take it. But when the

cardmember interjects humor,

i really enjoy it and i’ l l reciprocate.

i find those to be the best calls you

can have in a day.

MITHOO: I try to use humor as

much as I can when it’s appropri-

ate. I might have a cardmember

who is angry, and I still have to

update their account information,

their phone numbers, their

e-mail, as well as collect their

payment. However, they just want

to get off the phone once they

have authorized their payment.

So it helps to use some humor to

make them willing to take the

time to update their information.

I really appreciate the authority I have to make decisions about how to help the customer. Cardmembers call us when they have a problem using their card. If I think it’s appropriate, I can authorize a one-time charge even though there is a hold on the account. It makes me feel good to be able to do that.” — mithoo malani

when you’re dealing with customers every day, you’re faced with such a variety of personalities in sometimes stressful situations. and different customers have different expectations. you have to learn to adapt to each person and really l isten to what they need. that’s such an important factor to the success of the call.” — carmen suarez

“

‘‘

PAGE _27

I’ll say, “Wow, you and I make a

good team. Look how much we’ve

accomplished together. You can

use your card, and your informa-

tion is now current. Thanks.”

I also speak different languag-

es. If I detect that the cardmem-

ber is from India, for example, I

can talk to them in several differ-

ent dialects. It helps make them

feel more comfortable, especially

if they’re distressed. And I speak

Spanish as well.

cArmen: Mithoo, when you think

about the training you’ve gotten at

American Express, what stands out

the most for you? what’s been the

most helpful?

MITHOO: I was very lucky when I

started at American Express. The

trainer I had really enjoyed what

he was doing and was very knowl-

edgeable. That made it easier to

learn from him.

Overall, what impressed me the

most was the amount of time the

company invests in training from

the beginning. We all go through

an extensive training program

over a three-month period. The

company wants to make absolutely

sure we’re fully prepared to serve

the customer. That showed me

that American Express not only

cares about the cardmember, but

it cares about me and wants me to

succeed. And training and learn-

ing is a continuous process. As a

matter of fact, I’ll be in another

training session tomorrow.

It’s a constant learning process,

and things are always changing.

Have you found that our custom-

ers’ expectations have changed

over the years? Do they expect

more from us?

cArmen: Absolutely. it’s a very tough

marketplace out there with so many

offers from so many competitors.

More than ever, we have to prove

ourselves to our customers every

day by providing excellent service.

And bad news travels faster than

good news. So we always want to

leave a customer with a memorable

experience that they’re going to

share with family and friends.

MITHOO: My experience at

American Express is that we’re

willing to explore new avenues or

new solutions. We regularly ask

our cardmembers and employees

for their feedback, and we invest

a lot of resources in honestly

evaluating what they have to say

to make the appropriate changes.

You hear about companies all the

time that have been resistant to

change. From what I’ve seen and

experienced at American Express,

change is the norm. We’ve been

around for more than 150 years,

and that kind of longevity has

been possible because we’re

willing to take risks and make

changes.

cArme n: oK, now you sound like a

true American Express veteran!

meet our customer care Professionals

cArmen suAre z / carmen began her career at American Express 22 years ago. Today, in

customer focused Sales (cfS), she helps high-spending cardmembers with issues related to

dozens of different charge and lending products. She is also responsible for enhancing our

relationships with cardmembers by offering them additional products and services. carmen

has been recognized as a cfS top performer for quality and sales, and has won the Achievers’ circle Award

twice. Prior to joining cfS in 2001, she held several positions in credit operations. carmen is married, with

two daughters. She enjoys spending time with her family, travel and spin cycling at the gym.

MITHOO MALANI / Mithoo embarked on a second career when he joined American

Express as a customer care professional in 2005. Prior to that, he enjoyed a successful

career in computer and information technology as an engineer, and in product market-

ing and management with U.S. companies in the U.S., Latin America, Europe and India.

Mithoo currently works in the Return Check Department within the Risk Customer Servicing

Network (formerly known as Credit Operations). He has also held positions as a credit analyst with

the High-Spending Cardmember unit and the Deceased Accounts Resolution Team. Mithoo was

born and raised in India. He and his wife, Myriam, have been married for more than 30 years. They

have two grown sons and two grandchildren, with another on the way. Mithoo enjoys travel, chess,

photography and eBay.

ILL

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: Pe

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Ark

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PAGE _28

How NoT to wow the customer

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i f yo u h e a r o u t t h e c u s t o m e r ’s g r i eva n c e w i t h d u e a t t e n t i o n .i f yo u h e a r o u t t h e c u s t o m e r ’s g r i eva n c e w i t h d u e a t t e n t i o n .

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a m i e l r o s a r i o S y d n e y , A u s t r a l i awh a t i re a l l y h a t e a re a u t o m a t o n s . i ’m t a l k i n g a b o u t t h o s e w h o j u s t s ay a n d d o t h i n gs o u t ’m t a l k i n g a b o u t t h o s e w h o j u s t s ay a n d d o t h i n gs o u t o f re f l ex w i t h o u t re a l l y m e a n i n g a ny o f i t . T h ey s ay, “ t h a n ks , ” s a n s eye c o n t a c t , o r wo rs e , o f re f l ex w i t h o u t re a l l y m e a n i n g a ny o f i t . T h ey s ay, “ t h a n ks , ” s a n s eye c o n t a c t , o r wo rs e , “ H ave a g o o d d ay, ” a n d i t ’s 8 p . m . !

J i l l w a l t h e w L o n d o n i ’ve h a d t h e ex p e r i e n c e o f wa i t i n g i n l i n e , g e t t i n g t o t h e c o u n t e r, a n d t h e n t h e a s s i s t a n t ’ve h a d t h e ex p e r i e n c e o f wa i t i n g i n l i n e , g e t t i n g t o t h e c o u n t e r, a n d t h e n t h e a s s i s t a n t t u r n s away t o a n swe r t h e p h o n e . P r i o r i ty s h o u l d b e g i ve n t o yo u r fa c e - t o - fa c e c u s t o m e rs . t u r n s away t o a n swe r t h e p h o n e . P r i o r i ty s h o u l d b e g i ve n t o yo u r fa c e - t o - fa c e c u s t o m e rs . N ow i j u s t p u t b a c k my p u rc h a s e s a n d l e ave i f t h i s h a p p e n s .

Thanks to everyone who took part in the discussion. To read everyone’s comments or to add your Thanks to everyone who took part in the discussion. To read everyone’s comments or to add your own, head over to In the Loop on AmexWeb.

to the customer

LooK who’s

we all have them. those pet peeves about poor service we’ve experienced in shops and restaurants, and on the phone. in a discussion on in the loop, we asked you to tell us what bugs you the most. here’s what you had to say.

Ta l K i n GTa la l

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AustrAliA_luisa s megale

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indiA_vibha B Bajaj

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itAly�_luciana B strippoli

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office 336.668.5824 Fax 336.668.5696

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pho�enix, Az_mindy J Adams

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sAlt lAKe City�, ut_steve Allnatt

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