American Express 2003 Annual Report Download - page 13

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We also continued to expand our industry-leading Membership Rewards program, which is an important driver
of cardmember spending, loyalty and profitability.
In 2003, we added new Membership Rewards partners in a range of industries, including Elizabeth Arden Red
Door Salons, Hyatt Hotels and Resorts, Telecharge.com, SeaWorld and Busch Gardens Adventure Parks, Fortunoff
and Escada. We also introduced a new offering called Your Reward that allows enrollees to create their own unique
redemption packages, as well as to select from a diverse menu of ready-made adventures and experiences.
Membership Rewards is only one element of our rewards-based programs, which encompass a wide range of
products linked to loyalty incentives across our card businesses. We continue to see strong growth in the num-
ber of cardmembers who have products linked to rewards. For example, within our U.S. consumer and small
business base, that percentage has increased from more than 30 percent in 1998 to more than 60 percent today.
At the same time, we continued to invest in service quality, which has traditionally been a competitive advantage
for American Express. This focus led to improved customer satisfaction scores for servicing interactions such
as Membership Rewards inquiries, card replacement, credit and disputes.
Expanding Products and Services for Small Businesses
American Express is the leading card provider and one of the top lenders in the small business arena. We serve
our small business customers in the United States through OPEN: The Small Business Network from American
Express. In 2003, the OPEN Network introduced two new card products: the Business Cash Rebate Card and
the Platinum Business Credit Card, which contributed to significant growth in lending balances. We also
expanded our ability to offer line-of-credit products to U.S. small businesses through an innovative new federal
loan program called SBA Express. The program enables the OPEN Network to offer lines of credit backed by
the U.S. Small Business Administration.
We also continued to increase the range of services we provide to small business cardmembers online. In 2003,
we launched Expense Management Reports, a new online tool that helps small business owners track and manage
their business expenses.
(p.11_axp)
MORE CHOICES FOR MORE CUSTOMERS — Charge cards, credit cards, cobrand cards, prepaid cards, financial plans, asset
management — American Express offers them all. The TravelFunds Card, the American Express AeroplanPlus Gold Card for
Canadian consumers, Platinum Business Credit Card for small businesses and Blue Cash for U.S. consumers are just a few of the
card products introduced in 2003. AEFA launched six new mutual funds, the online service Financial Accounts and the ONE
High-Yield Savings Account, among other products.