American Express 2002 Annual Report Download - page 18

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We also launched the American Express Cash Rebate
Card for U.S. consumers. This product carries no
annual fee and offers up to 5 percent cash back, based
on a cardmember’s annual spending and payment
activity.
Following their launch, the new American Express
Rewards Green and Gold cards and the Cash Rebate
Card had good early performance, together accounting
for almost 500,000 new cards in 2002, with most
coming in the fourth quarter.
Rewards-based products not only drive higher spending,
they also have very favorable economics in terms of
cardmember attrition, credit and payment performance.
In addition to these new product launches, we continued
to grow our existing rewards-based lending products
in the U.S., such as our highly successful co-brand
portfolios with Delta Air Lines and Costco.
We also focused on expanding our industry leading
Membership Rewards program — the largest program
of its kind, with more than 9 million cardmembers
enrolled worldwide. About 1,200 redemption partners
now participate in Membership Rewards, which offers
the broadest range of redemption options of any card-
based rewards program. We continued to expand the
array of choices in Membership Rewards in 2002,
signing new partners in retail and entertainment
categories including Banana Republic, Blockbuster,
Broadway.com, Cingular Wireless, Staples, Ticket-
master, The Home Depot and Toys “R” Us.
New Brand, Products and Services for
Small Business Customers
In the small business arena, where American Express
is the leading card provider and one of the top lenders,
we moved to strengthen our business model by re-
launching our small business services organization.
We introduced OPEN: The Small Business Network
from American Express. This network provides a
robust new set of products, services, online account
management tools and partnerships that offer everyday
savings to small businesses. A nationwide advertising
campaign supported this effort, reinforcing American
Express’ commitment to serving small business owners.
I16 AXPI
GLOBAL PAYM ENTS GROWTH_ The Shinsei American Express Card in Japan, Blue from American Express
in Mexico, the American Express Tiger Woods Credit Card in Canada and the American Express-Société
Générale Gold Card in France were some of the more than 100 new proprietary card products launched in
2002 in international markets.