American Express 2010 Annual Report Download - page 12

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or down—based on business conditions and
windows of opportunity. In 2010, we accelerated
our investments to take advantage of our strong
financial performance. As we manage through
2011, we will likely reduce this spending from the
historically high level of the past year. Even so, we
plan to continue making substantial investments.
While we ramped up investments in 2010,
we kept ongoing operating expenses well-
controlled. Across the company, we stress the
link between efficiency and growth. We search
for ways to improve both costs and quality in all
our major business processes. By following this
formula, we continue to generate reengineering
benefits and free up funds to invest in growth.
C R E AT ING M O MENTUM
We are excited about the momentum we
generated in 2010 and the moves designed to
put us in a strong position for the future. Some
examples include our:
Enhanced charge card and premium co-brand
lineup: New products and features have given
our customers more reasons to use our cards. We
launched Centurion, Platinum and Gold cards
in several countries, as well as co-brands with
outstanding partners. As part of our focus on
premium customers, we now have Centurion
cards in 30 countries around the world.
Rewards as a virtual currency: Membership
Rewards, one of the world’s largest loyalty
platforms, has essentially become a virtual
currency. Cardmembers can increasingly redeem
their points online for a broad array of purchases
directly at merchants’ websites. The sheer size
of our points bank, combined with the appeal
of Membership Rewards to our cardmembers
and redemption partners, is fueling this trend.
One example: shop with points on Amazon.com.
10
$713
09080706
$561
$647
$683
$620
BILLED BUSINESS
(in billions)
10
91.0
09080706
78.0
86.4
92.4
87.9
CARDS-IN-FORCE
(in millions)
Billed business rose 15 percent to a record $713 billion on increased spending by consumers, small businesses
and corporations. American Express added 3.1 million cards-in-force on a net basis during the year, while improved
targeting and segmentation led to higher spending by first-year cardmembers.
10
AMERICAN E XPRESS C OMPANY