Business Model
Whether you are new to financial services or an experienced industry leader, you will find that American Express approaches its business model differently. Within our payment businesses, we call this the spend-centric model which focuses on "Card Member Spending".
Our spend-centric model starts with the most attractive customer base and because we offer more value to customers, they buy more with our products. Therefore, we deliver higher spending card members to merchants, for which we earn a premium discount rate. This higher discount rate generated from merchants enables us to invest more heavily in rewards, products and services to create premium value for our customers to drive higher spending, and so on.
American Express Brand Promise and History
Over 60,000 employees. Millions of customers and business partners.
One promise: World-Class Service. Personal Recognition.
We have gone through many changes, but a brand focused on excellent service has remained consistent since the company began in 1850 as an express delivery business, transporting goods for frontiersmen seeking adventure and opportunity in the American West. American Express made good on any loss in transit, and we quickly earned a reputation as a service company that could be trusted.
SECURE PAYMENT PRODUCTS
The Travelers Cheque was introduced in 1891 to meet the needs of customers visiting countries outside the U.S., and American Express pioneered safer and more secure forms of payment – to send money internationally, pay bills and exchange currency – and opened offices overseas.
TRUSTED TRAVEL SERVICES
In 1914, as World War I broke out, more than 150,000 Americans were stranded abroad. Banks had ceased to pay against foreign letters of credit or any other form of foreign paper, but tourists crowded American Express offices to cash their Travelers Cheques. American Express employees, as always, focused on customer needs and performed many invaluable services, booking tickets on U.S.-bound steamships and securing and forwarding the thousands of pieces of luggage that had been abandoned to make room for more passengers. The travel business was born.
LAUNCH OF THE CARD
American Express evolved again in the 1950s. Although Diners Club had issued a credit card domestically, the American Express Card was the first worldwide product to give customers the security of Travelers Cheques with the freedom of credit.
GROUNDBREAKING REWARDS PROGRAM
Listening to our customers in the late 1980s and early 1990s – when they were gravitating toward cards with loyalty programs for airline miles – prompted us to create our own unique rewards program. Launched in 1991 as Membership Miles (and renamed the Membership Rewards® program in 1995) our program focused on providing more redemption options than any competitor. Despite early concerns that rewards would dilute American Express’ premium positioning, today the Membership Rewards® program continues to be the industry standard and a key driver of Cardmember loyalty and spend.
TRUE TO OUR BRAND
As our industry rapidly evolves, we will continue to reinvent ourselves by entering new business areas and taking an innovative approach to service. In this environment, it is more important than ever that we remain true to our brand, using it as our guide as we write the next chapter of American Express history.
(Source: The Square)