American Express 1998 Annual Report Download - page 16

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14
Our Membership Rewards program remains
very popular and is a distinct competitive advan-
tage for us. It is the largest program of its kind
with more than seven-and-one-half million
enrollees around the world. For the second year
in a row, it was voted “Best Affinity Card” by
readers of Business Traveler International. We contin-
ued to expand the range of reward options in the
program, adding Gap, as well as Foot Locker and
The Sharper Image in early 1999. Membership
Rewards is a very successful program, but it is
expensive to maintain. We are exploring ways of
holding down expenses associated with the pro-
gram while maintaining its market advantages.
We also made good progress in providing
additional products and services to Cardmembers.
The number of Cardmembers using American
During 1998 we launched a card that offers
special services and discounts to National
Restaurant Association members. We also
began issuing a cash rebate card, which gives
Cardmembers up to two percent cash back on
their purchases.
Of course, not all of the growth came from
new products. The Platinum Card remains an
outstanding performer, and we saw strong growth
in 1998. An increasing number of customers
want the significant value that this premium
product delivers.
We continue to refine our infrastructure and
improve our ability to customize products and
services to meet Cardmember needs. CustomExtras,
for example, offers unique merchant discounts
directly to Cardmembers on their monthly billing
statements based on past card usage.
Rewards programs help drive spend-
ing and encourage Cardmember loyalty.
We expanded our Membership Rewards program and
launched several new products in the U.S., including
a cash rebate card that offers up to two percent cash
back on purchases; a card that offers special services
and discounts to members of the National Restaurant
Association; and a gift card, which works like an elec-
tronic gift certificate, with merchants such as Chanel.