American Express 2006 Annual Report Download - page 22

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To make the most of the data that comes to us through our closed-loop network, we
have also invested heavily in refi ning the way we analyze information. This helps us to
better understand and respond to customer preferences. For example, if a cardmember
enrolled in Membership Rewards still favors a competing credit card for most purchases,
we can customize our marketing to remind that cardmember of the rewards that come
with spending on American Express. Or, if we observe that a cardmember doesn’t use
her American Express card for certain categories of spending, like fuel or groceries, we
can work with merchants to create incentives designed to change that pattern.
Our aim is to capture a greater percentage of cardmembers’ total spending, build
business for merchants and earn the loyalty of both. With our information-management
capabilities and marketing expertise, we are able to be more precise in matching the right
offers to the right customers at the right time.
contactless payments
ExpressPay, a contactless payment feature
that uses radio-frequency technology, is a
fast and convenient alternative to cash for
a variety of purchases.
New Ways to Pay. Across the payments spectrum, from quick-serve meals to mortgage
payments, we continued to expand the ways our cardmembers can use their American
Express cards and build rewards points.
ExpressPay, our contactless payment feature designed to be a faster and more convenient
alternative to cash transactions, is now accepted at more than 30,000 places in the United
States, including the top quick-service restaurant, movie theater, drug store and convenience
store chains. This product is well-suited for merchants who need to process a large number
of transactions quickly and securely. ExpressPay, powered by radio-frequency technology,
is available both in a key-fob form and embedded within several card products, including
newly issued Blue and Clear cards and the Starwood Preferred Guest Credit Card.
On the other end of the scale, we are also focused on increasing card acceptance for
large-ticket purchases and recurring charges generally not put on plastic. One example is
the pilot we launched last September with New York real estate developer The Moinian
Group. This program will allow home buyers to put mortgage down payments on their
American Express cards. With the average Manhattan condominium selling for more than
$1 million, the condo buyer who puts 10 percent down on one of our many rewards-based
products earns 100,000 points
—
a powerful incentive to use the American Express card.
We also continued to increase merchant acceptance across a range of everyday spending
locations, a strategy that has been extremely successful for us over the past several years.
letter to shareholders
[ 20 ]