American Express is a company thriving in a difficult industry with strong competitors such as MasterCard and Visa. However American Express plans to provide excellent service to gain trust, loyalty and brand engagement, while others are primarily focusing on technological advancement.
American Express is attempting to form a value proposition which focuses on generating gain creators. This is exemplified by the increase in spending for advertising and “experiences”. By giving special offers for concerts and restaurant experiences card members feel valued. Customers relish in having exclusive offers only available to them and are drawn to a company that can provide them with these benefits. This results with social gains that lead to happier customers who are provided with positive social outcomes.
This coupled with American Express’s ability to connect services directly to their users greatly impacts the customer’s value and trust of the company. The company is recognizing how important customer loyalty is for success. By providing this exceptional service, new customers will be more drawn to American Express because the will be ensured of excellent treatment. This treatment also ensures that previous customers stick with American Express as they can continue to reap the benefits exclusive to them. This strategy is necessary in a industry filled with tough competitors all vying for the attention of consumers.
Sources:
Articles: http://www.theglobeandmail.com/report-on-business/amex-appealing-to-customer-needs/article21427902/
Images: http://www.coloribus.com/adsarchive/prints/american-express-petrol-15269505/