American Express 2013 Annual Report Download - page 12

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We have been putting the building blocks in place. Two years ago, we
launched our Serve software platform with the simple idea that
consumers needed a better way to move their money. Since then,
we have improved the technology that powers both Serve and Bluebird.
This enabled us to add an array of new money management capabilities
in 2013, including direct deposit, bill pay, mobile check capture, and a
“set aside” account for savings.
It’s still very early in the life of these alternative payment products and
we have a long way to go to build scale, but we are encouraged. Both
Serve and Bluebird are making our brand more relevant and welcoming
to younger customers who may not have considered American Express
before. We’ve also seen a halo effect on existing Card Members—those
who know about Bluebird rate us higher for brand attributes such as
relevance, innovation and respect.
REACHING NEW CUSTOMERS: On the subject of reaching new
customer groups, you might be surprised to know which part of our
company has brought in the most new consumer relationships over the
last three years. The answer is Loyalty Partner. When we acquired this
loyalty coalition business in 2011, it had about 34 million customers.
Three years later, that base has nearly doubled to 60 million people,
most of whom did not have a prior relationship with American Express.
The heart of this business is a closed-loop network powered by data
analytics. In each of the five countries where it operates, Loyalty
Partner brings together multiple merchants to participate in a single
loyalty program with a common rewards currency. Enrolled consumers
can earn and redeem rewards from participating merchants, while
the merchants gain access to a powerful customer loyalty platform
and analysis that can make their marketing efforts more effective.
This model complements American Express’ strength in rewards
management, deepens our relationships with merchants, and provides
an additional path to growth in key international markets.
Operating under the brand name PAYBACK, we now have loyalty
coalitions in Germany, India, Mexico, Poland and Italy. The Italy
launch just took place in January of 2014. We plan to take PAYBACK
to additional countries in the coming years.
AMERICAN EXPRESS COMPANY
10