Context Summer

“thank you.” A mAgAzine providing current content And pertinent context for the people of AmericAn express

another satisfied customer.

summer

2008

“You didn’t just win a customer,

you won a relationship.” “i will alwaYs alwa recommend american express xpress to everYone i know.” “it’s not just about the

power of the american express card but the service and people behind it.”

“FiFty years On, i never Leave HOme witHOut it.”

Service

iS everyone’S job. Frontline employees aren’t the only ones responsible For creating the customer experience. everyone in all areas oF the business plays a part.

W h at pa r t d o you pl ay ?

Summer 2008

in this issue

In Print

1

10

/ On the Road

How American Express teams are working to give customers a consistently great experience.

A XP Shor ts

Cover Art B e r n h a r d t Fu d y m a Design Group Editor Cynthia Aquila Design B e r n h a r d t Fu d y m a Design Group Printer Bannon Group Ltd.

Ken Chenault visits U.S. Service Centers.

/ U pdate:

American Express Partners in Preservation program.

/ G reen Scene

A grassroots team in the U.K. helps “switch” the company’s impact on the environment.

/ H ealthy Rewards

Membership Rewards makes a difference in Japan.

/ M y Work Space

A Greensboro employee displays her NASCAR passion.

/ O n Top of the World

Travel + Leisure readers rate the world’s best destinations, hotels, airlines and more for 2008.

6

Editor ’s Note

Royal Treatment

14

Driving Success Many colleagues at American Express worked together to win BMW’s consumer and corporate card business and create an unsurpassed customer experience.

20

Brand Pow er: The Next Generation of Service

Consulting the Cards This second in a series about American Express’ unique assets looks at how we use information to better serve merchant partners.

24

Ask Me How I Care

8

Two service professionals — a veteran and a newer employee — talk about delivering for customers even in tougher times.

Companies that get service right are the ones that win — and keep — customers.

28

ow Service Breeds H Success

Look Who’s Talking Employees give their take on how not to wow customers.

PAGE _1

On the Road with Ken Chenault recently visited our service centers in Fort Lauderdale, Greensboro and Phoenix to help mark the 50th anniversary of the American Express Card. During each two-day visit, Ken acknowledged our customer care professionals’ dedication to service and presented each center with a J.D. Power Award trophy. There are no better homes for these trophies since the award represents our top ranking in credit card customer satisfaction. Ken also challenged all employees, no matter what job they hold, to be sure to always think about how their work ultimately affects our customers. ken chenault

What Employees Had To Say “Hearing Ken talk about service and leadership really helps me reinforce the importance of those messages with my direct reports. He shows employees that he values our contributions.” —S tuart B erman Service Delivery Leader, AESC -Fort Lauderdale “Ken’s comments on changing customer expectations, and how we have to change as well, really struck me. I think we’re definitely on the right path for doing that. You could also tell that he really understands the challenges our frontline professionals face every day.” —T ina D avis

Service Delivery Leader, AESC -Greensboro

“Thank you for the things you do for our customers each and every day. . . .It shows your passion and commitment to delivering extraordinary customer care.” —K e n C h e nau lt C h a i r m a n a n d CEO Ke n C h e n a u l t t o u r s U . S . ser vice center facilities and greets employees. He was joined by Jim Bush, president, U.S. Service Delivery Network (top right).

shorts

PAGE _2

Update: American Express Partners in Preser vation

First church of christ scientist

Partners in Preservation at a Glance

on leong merchant association b u i l d i n g / p u i ta k center

american express’ partnership with the u.s. national trust for historic preservation helps preserve and increase public awareness about environmental, historic and cultural landmarks. an advisory committee makes the final selection of winning projects, but the public also have a say by voting online for their favorites. here’s a snapshot of the program to date. KicKoFF

2006

t o ta l a m o u n t pleDgeD

t o ta l n u m b e r oF proJects awarDeD grants

33

$over 5. 55 years million

t o ta l v o t e s c a s t

lo c a t i o n s

popular vote winners

> s a n Fra n c i s c o > chicago > new orleans t o ta l a m o u n t F u n D e D t o D at e

$ 2.4 m i l l i o n

41 4 , 3 9 9 > First church of christ scientist in berkeley (san Francisco) > on leong merchant association building /pui tak center (chicago) > st. James african methodist episcopal church (new orleans)* * The public were invited to tell their stories online about their favorite nominated landmarks but were not asked to vote.

this year, we also took partners in preservation to sydney, australia, where we joined with the national trust of australia. grants totaling $136,000 (aus) were awarded to three sites: waverly cemetery gates (popular vote winner), mosman’s clifton gardens pool and wireless house in glebe. american express also donated 20 cents (aus) for every cardmember transaction at participating merchants.

wa v e r l y cemetery gates

st. James african methodist episcopal church

PAGE _3

/

green scene

/

making th e sw i tc h hAmish AlexAnder Manager, Planning and Cross Channel Acquisition, International Consumer Card and Small Business Services/London

t h e F o l lo w i n g lanDmarKs were awarDeD grants For speciFic repairs at e ach site

1) st. James african methodist episcopal church 2) st. alphonsus art & cultural center 3) st. augustine parish hall 4) odyssey house louisiana 5) lafayette cemetery no. 1

ILLUSTRATION: Christine Chan

In New Orleans, Community Matters at st. James ame church in new orleans, the homeless find shelter, families come together to worship, and a community is enriched by the much-needed services this beloved landmark offers. that all changed after hurricane Katrina. the sanctuary has been closed, the congregation displaced and vital services hindered because of severe damage to the church from this violent storm. now, thanks to the latest american express partners in preservation initiative, st. James and four other historic sites are getting a new lease on life. american express, in partnership with the national trust for historic preservation, has awarded a total of $400,000 in grants for restoration projects in the city. the sites were chosen not only for their historic and cultural significance but also for the crucial role they play in bringing people together in neighborhoods hardest hit by hurricane Katrina. the stories people shared online (www.partnersinpreservation.org) reveal what these places truly have meant to the community.

a trip to the priStine Brazilian rain forest ignited Hamish Alexander’s passion for protecting the environment. Alexander is now putting that passion to work with the U.K. “SWITCH” team, a grassroots group formed to create greater eco-awareness among employees across the U.K. and help reduce the company’s impact on the environment. “The SWITCH team is about changing our behavior and switching off unnecessary power, like idle computers and lights in empty meeting rooms,” says Alexander. “When we come together as an American Express community, we realize we have the ability to help reduce our impact on the environment.” Under Alexander’s lead and with support from senior leadership, SWITCH team members are working with AXP partners to pilot the use of biodegradable cleaning products for the office. The team is also working with partners to source renewable, or “green”, energy and source recycling facilities for our U.K. offices. Employees are responding not only by turning off idle monitors and reducing their paper usage, but more than 50 people across the U.K. have asked to join the team and help drive SWITCH. — stacey orange

How can you switch your behavior to be more eco-friendly? Try these five actions recommended by the U.K. SWITCH team:

1.

Switch off your monitor when leaving your desk to save more than 60 percent of the total energy used by your PC.

2.

Eliminate paper “desk drops,” saving thousands of sheets of paper each year.

3.

Don’t print unless you really need to. And then, print double-sided and in draft mode.

4.

Say no to plastic bags. Bring your own reusable bag for lunch and skip the bag at check out.

5.

Drink smart by using your own reusable mug or water bottle.

shorts

PAGE _4

Healthy Rewards

1,500 points .................

polio vaccines for 3 children

cardmembers in Japan enjoy popular membership rewards redemption items, such as electronics and dining vouchers, as much as anyone. but many of them are also using their mr points to help others. this year, 17 percent of all redemptions have been for charity, with polio vaccines for children as the top redemption choice among non-airline mr categories. through programs run by médecins du monde, an international humanitarian organization and a new mr partner, cardmembers can also use points to help provide malaria treatments and plastic surgery for children with facial deformities.

10 0,0 0 0 * points .................

6,000 points .................

malaria treatments for 1 person

* 100,000 pts = 10,000,000 yen (approx. US$100,000)

plastic surgery for 1 child In Japan…

17%

of total redemptions go to charity

32 %

of redemptions for 6,000 points and under are for charity

PAGE _5

shorts

J oy s AvAg e , Director, Compliance and Ethics Greensboro, North Carolina

My wo rk S pace Six yearS ago ,

PhOTOGRAPh: (above) Peter Frank Edwards; ILLUSTRATION: Peter Arkle

when Joy Savage’s daughter and then future son-in-law took her to her first NASCAR event, she had no idea what was in store. “With NASCAR, you either love it or hate it,” Joy says. One look at Joy’s cubicle in Greensboro leaves no doubt which camp she’s in now. That first event not only got Joy hooked on the sport, but it also made her an avid fan of driver Tony Stewart. Mugs, photos, key chains, model cars — you name it, and Joy probably has it among the 50-plus items in her collection of Stewart memorabilia. And that number keeps growing. Joy’s coworkers often return from trips with a trinket or two to add to her display.

fIrst purchase

most p rI zed p ossess Ion

most recent addItIon

An autographed Tony Stewart baseball cap

A photo of Stewart snapped by her daughter at Joy’s first event and signed by the man himself

An official replica of Stewart’s new Home Depot Toyota car

on top of the World

readers of travel ravel + Leisure picked Bangkok as best city and the Galapagos as best island for the magazine’s 2008 World’s Best list. this was the first time both destinations won top honors. Last year’s winners – florence and Bali – dropped to number five and number two, respectively. here are some highlights of the world’s best: Best city Bangkok, thailand Best island Galapagos, ecuador

Best hotel singita sabi sand, south africa

Best international airline singapore airlines

Best domestic airline Virgin america Best car-rental agency hertz

Best hotel for $250 or less domaine des hauts de Loire, france

for the full list go to www.travelandleisure.com

PAGE _6

Fifty years is a long time to belong to anything, but I felt that having the American Express Card always made me feel as premium as the card is, and I sincerely thank American Express for helping me

achieve my American dream.

Editor’s Note

I remember well reading about American Express coming out with a special type of card. I immediately applied and was accepted. I have been extremely satisfied since then. The world has changed and is now loaded with credit and charge cards. To name one thing that makes the American Express Card superior to any other card is simply

S ERVICE .

If you have o n e o f t h o s e o t h e r c a rd s . . . t h ey d o n ’t g i ve a ra t ’s b e h i n d.

That’s what struck me the most about the letters. We talk a lot at American Express about the “special relationships” we have with our cardmembers. When you hear something often enough, it can lose meaning. But in their letters, the deep and genuine feelings cardmembers have for American Express is undeniable. ¶“#1 My wife. #2 My American Express Card. Can’t get passionate about anything else.” ¶ What makes this comment especially gratifying is that it was written by one of the 12,000 cardmembers who have been with us since 1958. We plan to tell the stories of these very special people as we mark the 50th anniversary of the American Express Card. So we asked them to share their experiences and proudest moments with us. And even though we didn’t ask, many who wrote in told us how passionately they feel about the Card and what American Express has meant to them for 50 years. Their comments — a few of which are included here — really bring to life the expression we use so often: “our legacy of service.” ¶While we have a lot to be proud of, that doesn’t mean American Express knows everything about great service. We strive for courteous, personal attention that goes beyond cardmembers’ expectations, but we’re not perfect. We don’t always get it right. We know that consumers are more discriminating about where they place their loyalty, and it’s tougher than ever to win them over. That’s an even greater I t ’ s t h e e m o t i o n.

My father was a charter cardmember. He believed in American Express and passed down his card to me. Every time I paid for something he always said,

“ G o d b l e ss A m e r i c a n E x p r e ss.” My two daughters now use that expression, too.

PAGE _7

One day during my travels, I was reading an ad promoting a credit card . . . to pay hotel and restaurant bills. I thought this was one of the greatest ideas I had ever heard of. That is why 50 years ago I signed up for the American Express Card. It has been a

l o ng relat i o nsh i p.

I have put a lot of airline miles and charged a lot of hotels and meals on the card. I have cer tainly enjoyed the ser vice and relationship with American Express.

challenge today as a bleak U.S. economy heightens consumers’ anxieties. ¶ Over the past few years, we’ve been taking an even closer look at how we care for our customers to find out what great service means to them and what we need to improve. Of course, that’s not just the responsibility of our frontline employees. As Ken Chenault and other senior leaders remind us, each of us needs to understand how the work we do ultimately affects our customers. ¶ This issue of Context begins with a look at what’s behind consumers’ higher expectations and how some other companies known for great service do what they do best. We then turn to how different American Express teams are thinking about creating a great experience for their customers. Next, the story behind the BMW consumer and corporate card win in Germany and Austria spotlights the many types of expertise and the overall coordination required to serve customers well. The second in our Brand Power series explores some of the ways we are honing the services we provide to merchants. Finally, two of our customer care professionals, an American Express veteran and a newer employee, give us their take on the customer experience. ¶ For those moments when we all could use a little inspiration, here are some words of thanks from our Members Since 1958, to the people of American Express:

AmEx has always been there for me. I was wintering in Florida a year ago, and the magnetic strip on my ATM card wore out. My bank didn’t have a branch there and was of no help to me. I couldn’t get cash. AmEx took care of it in an instant. Recently, on two occasions, I called and my request was greeted with “You are a charter member” and was

given special care. You’re great and I love being a member.

Thanks to American Express for accepting this little countr y boy as a char ter member in 1958.  It has been a most

Pleasant Journey w i t h n o e n d i n s ig h t .

PAGE _8

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Graphic: Lon Tweeten

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Royal Treatment At American Express, viewing service through the lens of the total “customer experience.” by Jonathan Sapers

When Rohit Bery thinks of extraordinary service, he thinks of RitzCarlton. During a dinner at one of the chain’s upscale hotels years ago, Bery, vice president, Customer Experience, told his waiter how much he liked the french fries. “They are the best french fries I’ve ever had,” he remembers saying. From then on, every time he ate at a Ritz-Carlton, he always received — unsolicited — a 14-inch plate of fries, even in Bali where he went for his honeymoon. “That was incredible, it was really ridiculous — and I mean that in a good way,” Bery says.

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Top service providers know the sort of personalized attention Bery received makes a lasting impression on customers, and also one they are highly likely to share with everyone they know. Or even those they don’t know. Consider the vast number of virtual communities where consumers can sing the praises of — or do a hatchet job on — a company for how they are treated. With information about products and services only a click away, consumers are much more informed, which means that many expect much more from companies vying for their business. People already expect the extraordinary from American Express. And while it’s nothing but a plus to be perceived in such a light, here’s another way to look at it — we have to keep elevating our performance just to meet expectations. This is especially relevant now, as a stagnating U.S. economy creates more anxiety for many cardmembers. Over the past few years, we’ve been viewing service with a more critical eye to find out where we need to improve, what counts as great service among different kinds of customers, and how to best deliver the kind of differentiated value and care that breeds loyalty.

ILLUSTRATION: Peter Arkle

The whole experience As Bery’s title suggests, our definition of service has expanded in recent years to the broader concept of the customer “experience,” an appreciation that there’s a lot more to service than a smooth transaction or courteous interaction. Bery is part of a U.S. Service Delivery Network team led by Senior Vice President Rosa Sabater that is charged with deconstructing the customer experience and thinking about how all the pieces — everything from offer development to customer outreach to billing — fit together. “We’ve always been a company committed to being there for our customers, and that’s been part of our DNA for more than 150 years,” says Jim Bush, executive vice president, U.S. Service Delivery Network (SDN). “What we’re focused on today is making sure we understand how our customers’ needs and expectations evolve, and empowering our people to deliver for them, at every point in their relationship with us.” We’re on a similar quest in our international markets, where we have the added challenge of understanding myriad cultures, regulations and issues in each of the 21 markets we serve. “We need to be the eyes and ears of our customers for our international business,” says Cynthia Valles, executive vice president, Customer Service International (CSI). “In every market and across every business, we are working with our business partners to address issues and deliver extraordinary service that will distinguish our brand in the marketplace.” What follows is just a taste of some of the actions we’re taking in different areas of our business to give customers a consistently great experience with American Express.

Japanese cardmembers were embarrassed when they encountered a problem at the point of sale and had to discuss the issue over the merchant’s telephone. With Merchant Services, the team implemented a new process where we contact customers directly on their mobile phones.

Benchmarking the best Part of our work in the U.S. has involved researching other companies outside of payments that are highly regarded for their service — companies such as Ritz-Carlton, Federal Express, Starbucks, Southwest Airlines and Singa­­pore Airlines. Learning more about how these industry leaders care for their customers has helped confirm our own thinking about improving the customer experience. “One theme we’ve found is that service professionals are held in the highest regard as the ‘voice of the company,’” says Rosa Sabater, who also heads the SDN’s Learning Network. “And there’s a focus on removing the barriers that prevent them from creating the best possible experience for the customer.” Ritz-Carlton employees, for example, have the discretion to resolve a guest’s problem regardless of their area of responsibility and are allowed $1,000 each day per guest to make it right. Southwest Airlines employees have something they call “two-level-up decisioning,” according to Aline Kassabian, a director on Sabater’s team. “If you think your boss’ boss would make a decision, you should make it. And if it turns out to be the wrong decision, leadership will come and explain to you why it was the wrong decision. You don’t get penalized,” she says. Brand imagery is omnipresent in the workplaces of other service leaders. Model airplanes with distinctive Southwest tails hang from the ceiling in the lobby of that company’s headquarters, while each floor of Starbucks’ central offices has a coffee station, and new hires begin work with a shot of a choice coffee. Messages reverberate. At Ritz-Carlton, employees from the front lines to the executive suites can recite their customer principles. American Express is highly regarded for service quality, and the pride our employees feel in representing the company’s brand and values is well-known. But by digging deeper into specific measures of satisfaction, we also found room for improvement. Many of the other top service companies across industries ranked higher than we did in areas such as speed of resolving issues, ease of doing business and consistency of service.

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“Our benchmarking has helped us shape some of our service initiatives, such as better supporting our customer care professionals so they feel motivated and equipped to resolve cardmember issues on their own, without the need to consult someone higher up,” Sabater says. Customer care principles, which were introduced across the SDN last year, help guide our service professionals in building relationships with custom­ers. We survey customers after every interaction to find out how satisfied they were with the service they received and whether they’d recommend American Express to a friend. Low ratings and customer complaints are investigated to better understand the issues and help improve the customer experience. And more customers are telling us they’d recommend American Express to friends and family, which is the ultimate measure of success. Both the SDN and CSI have also been making changes to improve workplace flexibility, compensation and career-development opportunities, as well as recognition and rewards that emphasize the importance of the role of our customer-facing professionals. On tap for service professionals this year: training that focuses on customer treatment and relationships as the basic tenets of extraordinary customer care.

Customers speak; we listen Across international markets, one of every two customers who complete our satisfaction survey writes in a comment about their experience. These comments provide the basis for improving our products, policies and service, and for identifying ways to innovate. A year ago, CSI formalized a process for gathering feedback, which it calls Voice of Customer. It has proven to be a very effective method for raising issues that dissatisfy customers and giving us a structured approach for resolving them. The effort reinforced how cultural differences require flexibility from country to country. Japanese cardmembers, for example, were embarrassed when they encountered a problem at the point of sale and had to discuss the issue ­using the merchant’s telephone.

Small business customers are often on seasonal cycles, meaning they may require more flexibility with credit. OPEN has tailored products for them that offer options for paying sooner and getting discounts,or deferring payment in months when cash flow is slower.

“With our partners in Merchant Services, CSI implemented a new process where we contact customers on their mobile phones instead of calling the merchant. The customer can speak privately and not ‘lose face’ in front of others,” says Nancy Carlin, vice president, CSI Customer Experience. Working with partners in marketing, merchant servicing, risk management and technologies, CSI colleagues are identifying and resolving the biggest “pain points” of the customer experience in every market. “The customer experience is not only about service over the phone but about how we handle every touch point with the customer, including how our products, policies and procedures actually work. Are they easy to understand, and do they enable our customers to do what they desire, or are they complicated and limiting?” Valles asks. Through Voice of Customer, we’re listening and responding, and the results show it — more than a third of the key issues identified have been resolved or improved.

Thinking like consultants No matter where they are or what they do, American Express cardmembers all expect great service, but they have different ideas of what that looks like. Small business customers, for example, are often on seasonal cycles, meaning they may require more flexibility with credit. OPEN has tailored products for them, such as the Plum Card, that offer options for paying sooner and getting discounts, or deferring payments in months when cash flow is slower. Customer care professionals who serve OPEN cardmembers receive specialized training so they can better understand the specific needs of, and solutions for, small businesses. For example, asking an established customer to provide additional financial information when applying for a credit increase can sometimes be a difficult conversation, according to Bery. “We’re making sure that our service professionals know how to have this more consultative conversation. So they can help the cardmember understand what they need to do and how it benefits them, as well as why we need the information.” From small businesses to larger corporate and business travel clients, serving our customers means finding ways to help them grow and prosper. “Especially in today’s uncertain economy, our corporate clients need us more than ever to help them be successful,” says Kelly Fisher, vice president, Global Strategic Partnerships, Global Commercial Card. Often, that means customizing solutions, such as analyzing and packaging data that companies are required to report, or even providing guidance on the best way to improve business operations. Fisher sees every challenge a client presents as an opportunity to differentiate our services. “Because we treat these relationships like partnerships, we’re not successful if they’re not successful,” she adds.

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A pilot program for Centurion cardmembers gives them access to a team of 10 to 15 travel counselors, each with a defined specialty. Making life easier for business travelers Our B2B client companies have high expectations of American Express, and so do their employees, who are the end users of our products and services. Business travelers today often have more complex, multicountry itineraries. Travel counselors need to be familiar with more destinations than ever before, and documentation requirements for each country can challenge even the most seasoned traveler. “Online booking tools are not particularly effective for complex, international travel,” says Julie Bottner, senior vice president and general manager, Global Operations for American Express Business Travel. “So it’s an opportunity to differentiate American Express through the premium services of our travel counselors. This has exponentially increased their skill requirements, which is a challenge for us but also exciting for them.” To meet that need, Business Travel is developing more sophisticated training and orientation programs to enhance travel counselors’ skills, both in terms of booking expertise and destination knowledge. Travelers are also dealing with more frequent disruptions as the airline industry has cut flights and staff due to financial pressures. “Customers don’t know all the reasons why things happen. All they know is that they need to get to their destination, and they count on us to get them there,” Bottner adds. Business Travel is working with airline partners to understand their internal operations and better coordinate logistics when flight disruptions occur. “We want to know exactly what they will do and in what order. So when the traveler calls us, we are in sync and can provide the best possible service to our mutual customers,” Bottner says.

Dream specialists The same is true in consumer travel, though here the challenges can be different. “Many of our customers come to us to help plan their dream vacations,” says Laurie Farquhar, vice president, Customer Experience and Service Capabilities, Consumer Travel Network (CTN). “We spend a lot of time with them, either on the phone or in person, and travel arrangements can be quite complex, requiring a number of follow-ups. That relationship the travel counselor develops with the customer is so critical to the overall American Express brand.”

The business has developed travel options tailored to customer tastes, ranging from simple transactions that can be done online to exclusive luxury escapes complete with private jets, yachts and villas. CTN is also piloting a program for Centurion cardmembers that gives them access to a team of 10 to 15 travel counselors, each with a defined specialty. “Our customers expect our counselors to know every place in the world,” Farquhar says. “A travel counselor may be booking a trip to somewhere they’ve never been, like Dubai, for example. But their teammate has just returned from an extensive tour and has the expertise that’s needed.” The ultimate goal is to create lifelong advocates and customers of American Express. “It’s not just about travel — it’s about creating an unequaled and memorable experience for customers from start to finish.”

The journey continues Our focus on improving the customer experience is already yielding measurable results. Around the world, the percent of customers who rate our service as excellent (and who would recommend American Express to a friend) is significantly higher, retention of frontline employees is at industryleading levels, and operating expenses as a percentage of revenue are lower. And feedback from our customer-facing professionals indicates they are feeling more supported and engaged in their work. We’re also hearing good things from independent sources. Last year, American Express led all credit card issuers in customer satisfaction in a J.D. Power survey. More recently, an MSN-Zogby survey of U.S. consumers listed American Express among the top 10 service providers across a range of industries. “All of us at American Express identify deeply with our brand, and we’re proud of our reputation for the way we take care of our customers,” says Jim Bush. “At the same time, the vision of our company is to be the world’s most respected service brand, not the world’s most respected credit card brand or the world’s most respected financial services brand. We still have plenty to strive for.” Cynthia Valles emphasizes, “Every interaction we have with our cardmembers is an opportunity to influence the customer’s experience and reinforce our brand. With the commitment of all of our International employees, CSI is at the center of making this happen.” So what will “service” look like down the road? Rohit Bery sees a day when OPEN is routinely viewed by its customers as a key business advisor. Laurie Farquhar has a vision of the CTN seamlessly anticipating customers’ vacation desires online, on the phone and in person. Julie Bottner imagines delivering up-to-the-minute information right to travelers’ mobile devices. Rosa Sabater adds that “this process of focusing on the end-to-end experience really opened my eyes to what more we could do for our company and our customers. I tell people all the time that I’m just awed by the possibilities.”

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Both the BMW consumer and corporate card projects were intricate, all-consuming efforts that required the expertise and coordination of many American Express colleagues in Germany and Austria. Pictured, clockwise from top: Simone Fischer, manager, Membership Rewards; Martin Ehret, director, Acquisitions, who led the consumer cobrand project; and Heike Hilf, director, Customer Relationship Management.

4

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Last August, when BMW decided to discontinue its cobranded consumer card with MasterCard and Visa and partner with American Express, it was a major win for the Blue Box in Germany and Austria. The signing significantly boosted our market share in a highly competitive, lucrative region. “It was difficult to grow in this market without the dominant player, Lufthansa, as an airline partner,” says Werner Decker, vice president and general manager for Germany and Austria. “With the existing Visa and MasterCard portfolio, and the prospect of reaching the entire BMW customer base, this deal now opens the door to a sizable opportunity for us.” And while the sales coup is impressive, the real story is how many colleagues at American Express worked together to beat a highly competitive field for the BMW win and, ultimately, deliver the kind of superior customer experience that both brands are known for. “Everyone at American Express in Germany and Austria at some point worked on the BMW card project,” says Martin Ehret, the Frankfurt-based director who led the project. “It was an intricate, all-consuming effort.” For more than a year, these American Express colleagues, some client-facing, most not, got to see a lot of each other at frequent meetings, both at their offices and at BMW’s headquarters in Munich.

DRiviNG SUccESS

PhOTOGRAPhY: Gaby Gerster

Two ToP GLoBAL BRANDS coLLABoRATE oN A cARD PRoGRAM BUiLT ARoUND THE cUSToMER EXPERiENcE. b y J u l i e M o l i n e Besides the scale of the migration — the term for transitioning Visa or MasterCard cardholders into BMW/American Express cardmembers — the project involved a considerable amount of customization, which in turn required significant adjustments in technology, marketing and fulfillment before the first card could be embossed. The complexity was as daunting as it was exciting, Ehret says, especially since the migration of more than 100,000 cards in Germany was expected to be completed only four months after signing. “To BMW, one of our advantages is our expertise in process management,” he explains, “so they were confident we could pull it off. Another advantage was that our partner is a German manufacturing company, which approaches everything it does with the mind-set, and precision, of an engineer.” A network of project teams formed to address every aspect of the program and transition: branding, manufacturing, integration, communications, marketing, Membership Rewards (MR), finance, risk, legal, compliance, customer service, sales and relationship management. Early in the program development stage, the network added a Global Commercial Card team when BMW expressed interest in a cobranded corporate card (see sidebar on page 18).

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Aligned brands, coordinated strategy

Both American Express and BMW have customers of similar backgrounds, and both have strong brand reputations — factors that made the card partnership a good fit. But it was American Express’ approach to the customer experience that especially intrigued BMW. For BMW, the customer isn’t just a person who drives a fast, gorgeous car. The customer drives an emotional relationship with the automaker. “The car is a particular point of pride for owners,” Ehret says. “And anything with BMW branding, whether it’s a keychain or a credit card, is a reminder of what the brand stands for: superb engineering; a product someone is proud to have and use every day; a statement about lifestyle and taste.” In essence, BMW was looking for a card that was an extension of all of those things. That’s why the end product would have to be more than a traditional loyalty or store payment card, especially since BMW was looking to be an active partner in everything from customer service to experiential marketing. Convincing BMW of American Express’ expertise was one thing. Convincing potential customers of the merits of the card was another, largely because most of the BMW cardholders were being asked to switch over to a provider they hadn’t originally opted for. In Austria, there was an additional hurdle since cardholders needed to apply for the card before they could be migrated. BMW expected some push-back, Ehret says. Some customers might be concerned about whether their cards would be welcomed in as many places. Some would simply be resistant to change. Some would resent paying a higher annual fee for an American Express card than for a Visa or MasterCard. Whatever hurdles BMW foresaw, it was up to the American Express team to devise a way to surmount them. Custom everything

Creating the optimal customer experience for the BMW/ American Express cardmember began with the plastic itself. Since the accounts belonged to existing BMW customers, BMW got the predominant branding. Instead of the words American Express taking center stage, a close-up of the circular BMW logo dominates the card face, and the Blue Box is in the lower right-hand corner. “It was important to put aside the natural tendency to want to make the branding more about us and recognize that the new cardmembers would identify with BMW first,” Ehret explains.

Modifying the card design took some doing, since it required sign-off from both the American Express branding team and senior management, and this kind of “partner first” imagery required an exception from our standard policy. Refining product elements

One of the biggest challenges for cobrand developers was determining the features and benefits that would appeal especially to drivers — and BMW car lovers in particular. For example, the team created a schutzbrief — schutz means protection in German — to enhance the insurance offer for the premium cards (Silver, Gold and Carbon). If a cardmember’s BMW gets a flat tire or breaks down, they can call for fast and free roadside towing to the closest dealer for repair. And, in a nod to a country where speeds on the autobahn often exceed 160 kph (100 mph), another perk is legal liability insurance, so if a cardmember is involved in an accident and the case comes to court, then the insurance company will pay for legal representation. The teams also took special care to leverage Membership Rewards, according to Simone Fischer, MR manager. “We spent quite a bit of time determining what the BMW customer would especially appreciate,” and that also would benefit BMW (through customer loyalty), its network of independent dealers (through relationship building with drivers) and American Express (through spend stimulation). To begin with, that meant switching the focus away from frequent-flier rewards and toward frequent-driver rewards. “We couldn’t just duplicate the MR program for the Gold Card,” she said. “It had to connect the card’s value proposition to the BMW product, the car.” That’s why cardmembers get double points for spending related to fuel, car washes and parking. It’s also why the MR team worked directly with BMW dealers to establish meaningful offers, such as double points on accessories and regular maintenance visits. Drivers may soon be able to put their lease payments on their cards as well. (Several customers have already charged their car purchases on an American Express card, earning tens of thousands of MR points.) Another way to connect MR rewards to BMW cardmembers is through BMW-oriented redemptions for things like accessories and for using points to attend BMW-sponsored events, from Formula One racing to sailing regattas. Involving dealers in developing the Membership Rewards program was a high priority, too. Because they’re indepen-

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PhOTO:Joseph Ford

Pictured, clockwise from top: Peter Ostermoeller, director, Customer Service Delivery for Germany and Austria; Anita Pruckner, head of consumer card marketing for Austria; and the Global Commercial Card (GCC) team, BB Roy, vice president of sales, GCC Europe; Torsten Schimpf, director, Sales; and Remco Flipsen, director, Sales, who led the commercial card initiative in Germany.

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dent rather than company-owned, each dealership can decide whether to accept American Express cards, Ehret says. “It was essential we get their buy-in to the whole cobrand idea, because it definitely would have been a problem if a dealer didn’t accept the American Express card with a BMW logo on it. But from what the Merchant Services team is telling us, the dealers are quite pleased.” Dealers also are an important distribution channel for new cardmembers. “They are really part of the BMW owner’s experience, since they regularly communicate and interact with owners,” Ehret points out. “Having them promote the card enhances our credibility and gives dealers a stake in our success.” Since the loyalty program is such an essential part of the customer experience, “there’s a big drive to encourage migration cardmembers to sign up for MR right from the start,” Fischer says. That means including information about Membership Rewards in virtually every BMW cardmember communication, as well as coming up with enticing offers — like valuable vouchers that can be applied to purchases at dealerships and even an option to redeem points for a BMW car — to encourage spending on the card and point redemption. substAnce … And gloss

Long before the new BMW/American Express card arrived in a specially designed, glossy jacket, customers were well aware of what was coming. Migrating nearly 100,000 consumers would require detailed explanations — not just the whys and wherefores of the switchover, but how the migration would actually work, what the new card would offer and why it was so appealing. BMW was especially concerned about the way the customers would respond to having their card provider switched, says Heike Hilf, director, Customer Relationship Management. Both partners collaborated closely on the campaign. “Communication-wise, the effort has been extraordinarily 360,” Hilf says. “We ended up creating our own corporate identity for joint communications from BMW and Amex. Creative teams from both companies were

Engineered with Precision:

THE CORPORATE COMPONENT if signing the consumer card deal was all about brand alignment, the corporate card win was all about expectation alignment — showing that American express could deliver to bmW precisely what an outspoken rival said the company could not, and more. At first, it seemed that adding a corporate card component onto the cobranded consumer card program was out of the question. bmW had just renewed a five-year contract with American express’ main corporate card competitor in germany, lufthansa Air plus. “basically, we were faced with a client who was highly motivated to stay with the incumbent,” says remco flipsen, director of sales for global commercial card, europe. convincing bmW that American express could provide a superior customer experience required deft powers of persuasion. flipsen and his team made the case for American express’ global reach, an important asset for an organization with operations in more than 30 countries. but what really helped win the client over was the team’s painstaking approach to understanding bmW procurement and expense management needs. the American express team examined travel data with the same zeal and rigor that bmW’s engineers bring to their design process. that meant scrutinizing all of bmW’s corporate requirements for accounting, finance, tax reporting, staffing, travel management, procurement and labor relations (highly regulated in germany). members of cross-functional teams ultimately demonstrated how American express could provide solutions more far-reaching, and more practicable, than Air plus could ever hope to offer. When it became clear, for example, that American express needed to custom-design a software solution to improve the way data is integrated into bmW’s unique accounting systems, senior management approved the necessary funding — a move that resulted in other benefits, too, like a new suite of superior information management offerings for the broader german market, says bb roy, vice president of sales, gcc europe. “We worked point by point until everyone at bmW agreed that we would be able to match, deliver and exceed all of its requirements for a corporate t& t e card payment system,” flipsen says. the signing of a longtime holdout was sweet: With 22,000 employees, bmW is an important new client, not just because of the value of the deal, but because of the automaker’s reputation for thorough vetting of suppliers. “bmW wants to know how things work, in detail; they are focused first on perfection and then on money,” flipsen says. When it came to implementation, that perfectionism meant running a test to see how the business travel account and card accounts would work. All that focus on detail and testing paid off with an auspicious beginning to the bmW/American express relationship — and one that roy says bmW is already interested in expanding. “it’s truly a partnership,” says philipp Arbter, product manager at bmW financial services. “the American express team made it quite easy for us to work together. And we’re very satisfied with the progress we are making and the response from our customers.”

PAGE _19

working from the same set of visual and copy standards.” For continuity — and authenticity — BMW gave American Express access to its images and participated in every key marketing communication decision. “We all wanted to be very sure that these customers weren’t swamped with information,” Hilf says. An integrated marketing calendar outlined the contact strategy for all kinds of cardmembers: migration or new; an early rejecter of the new card; a dealer or BMW employee; a cardmember with a premium card. Then it delineated which party — BMW Bank, which was relinquishing the card business, BMW or American Express — would be sending material. To make a great first impression, the welcome package included plenty of enticements. For migration customers, the carrot was a four-month series of vouchers for up to 20 euros off purchases made with the card at 10 upscale merchants. “Besides the attractive incentive, there was another subtle message here,” Ehret says. “We were looking for an elegant way to tell customers about our wide variety of merchant partners in the market.” Merchant Services International colleagues worked with the Customer Relationship Management team to select the merchants for the premier set of vouchers. They identified upscale providers in categories like travel, sports, fashion, jewelry, booksellers, dining, theater and department stores to show cardmembers, rather than tell them, that American Express is accepted everywhere they would want to use their cards. the personAl touch

And what of the customer experience when it comes to customer service? There was an intense focus on training in the call center in Germany, where a number of service professionals were added to handle the additional call volume. “There was a lot of discussion not just about how many rings before pickup were allowed, or about content for scripts, but about the more subjective aspects of a call,” says Peter Ostermoeller, a director of customer service delivery for Germany and Austria. “Tone of voice, level of formality, even how to say hello and goodbye, and when it is appropriate to

engage the caller in conversation that’s not directly related to the question or issue one was calling about — we discussed all of this with our service professionals, and BMW was very much involved.” Properly setting the stage at the call center was especially critical for the migration cardmembers, who could activate their cards only with the assistance of a service professional. The idea was to begin the new customer relationship with highly personalized service — making referrals to nearby merchants, for example, or mentioning special offers. One challenge to reckon with was that BMW and American Express don’t measure service quality in identical ways. Where we typically look at direct feedback from customers, BMW wants to do the testing itself — using secret shoppers, or posing as cardmembers and calling the customer service line. “In the end, we both made some adjustments,” Ostermoeller says. “The goal was for the customer experience to be of the same high quality whether they are calling us or BMW.” initiAl results: Wundervoll

While the “customer experience” may be something of a qualitative concept, in this case, it is helping drive the kind of hard data needed to measure success. And, so far, early metrics have comfortably exceeded projections from both American Express and BMW. Activation is strong, and more than 70 percent of transferred cards have been used in the first month. There’s low attrition, high Membership Rewards opt-ins and healthy spend volume more than 40 percent above initial expectations. The new card is also attracting entirely new customers, many through the dealer channel. And, already, MR point fanatics are emerging — another sign that the program is resonating with consumers, Hilf says. Martin Ehret still has regular, weekly meetings with his BMW colleagues. And, he says, this thriving partnership has paid a bonus dividend: sparking the interest of other German companies that want to copy the BMW cobrand card story. “Whenever you have a win like this, where a team pulls together to produce a great result, it’s obviously very satisfying for all involved,” Decker says. “But when we can replicate and build on the experience, that’s invaluable.”

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B r a n d P ow e r : T h e N e x t G e n e r at i o n o f s e rv i c e

A Contex t series on the unique capabilities that make American Express more than just a payments company.

C onsulting the Cards

A new take on doing business with merchants. by christine meyer - oertel

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I f you were a merchant looking to expand your business, you’d probably be asking yourself some very important questions: Do I really know who my customers are? Do I fully understand what they most want and need? How much of their business are my competitors getting — and why? To help bring the answers to light, you could hire consultants who are marketing experts. Then again, they may know little about your particular business or customers. Or you could contact an unexpected resource: your card company — that is, if you’re a merchant that welcomes American s e a s o n s 52 Express cards. A G r a n d Op e n i n g Last year, the Global Information Insights (GI2) team helped thousands of businesses learn more about their customers and their opportunities for growth. The source of these new hen Seasons 52, an upscale casual dining chain, was deciding on new locations insights is a comprehensive set of reports that represent the for expansion last summer, it turned to American Express for advice. The restaunext generation of services American Express can provide to rant, which offers a seasonal, lower-calorie, fresh grill menu, had already opened merchant partners. seven locations in Florida and Georgia, and was set to add three new locations a year. “We’ve created a unique space in terms of the information Having selected 15 markets for consideration, the CEO had two questions: Where should we we collect and what we’re able to do with it,” says Vice Presi2 expand, and how should the chain position itself in those new markets? Answering these quesdent Ayesha Almeida, who heads the GI team within Global tions involved a “full immersion into their operations and their business goals,” says Joe Kosta, Merchant Services. director, Business Insights, who led the project. The information she’s referring to comes from four sources First, the team looked at existing Seasons 52 restaurants to determine customers’ average — cardmembers, transactions, merchants and publicly availdrive time to those locations. This information was the basis for mapping out trade areas, a able sources — and it’s a potent advantage of our closed-loop perimeter around proposed locations to help determine which have the highest concentration network. Since we have relationships with both cardmemof potential customers. Within each area, they analyzed the number of card accounts most bers and merchants, we get information from both sides of likely to dine at upscale casual restaurants; the total spending at full-service restaurants near a transaction. Information that helps us understand where, the proposed locations; and the total spending from local cardmembers in those cities. when and how often cardmembers spend, whether with The team also analyzed the competition in each market. Offering a fresh grill menu, Seasons American Express products or with other forms of payment. 52 is not easily categorized, Kosta found. “Because the chain straddles two dining categories, “We still provide marketing tools to help drive customers we mapped two groups of competitors: upscale casual dining and fine dining /steakhouse to a merchant, as we’ve done for a long time, but the role restaurants.” This gave Seasons 52 an understanding of which markets could support their we’re now playing adds so much more value — and merrestaurant and which were oversaturated with similar types of restaurants. chants can see it,” Almeida says.

W

The site analysis revealed four cities that offered the best opportunities. It also confirmed

What merchants want to know

Seasons 52’s upscale marketing strategy with a recommendation to open restaurants near

S ince 2 0 0 6 , small merchants with a dedicated account

high-end grocery and clothing stores, since Seasons 52 customers have a high affinity for

manager have been able to request one of several standard-

these two retail categories. Opportunities to develop joint marketing programs between the

ILLUSTRATION: National Forest

restaurant and the upscale retailers were also flagged.

Retailers can analyze profiles of customers who shop “down the street”

and learn how to win more of their business.

“Seasons 52 valued our suggestions because of American Express’ brand reputation and the trust we were able to build,” Kosta notes. The CEO is now reviewing the recommendations with the board of directors. The positive feedback on this project has also spread within Seasons 52 parent Darden Restaurants, one of the world’s largest casual dining chains, which also includes popular venues such as Red Lobster and Olive Garden.

PAGE _22

ized reports that offer insights into cardmember spending patterns, industry trends, effective marketing channels, characteristics of potential customers, and the marketplaces that represent the best opportunities for growth. These reports are available at no charge, in less than 24 hours. Account managers typically deliver results in person or over the phone. Large merchants looking for answers to specific questions can take a deeper dive into the data with a more sophisticated set of customized reports. For example, retailers can analyze profiles of customers who shop “down the street” and learn how to win more of their business. Or a merchant with multiple brands can see whether customers have any affinity, or common attraction, across those brands.

Asking for more As merchants have become more familiar with our data

D

na pa va l l e y v i n t n e r s a ss o c i at i o n

A Taste of Wine Country

ata has proven to be a dynamic relationship builder for American Express in Napa Valley, California. This region is home to more than 300 wineries, ranging in size from small, family-owned vineyards to comparatively large-scale operations like Beringer Vineyards

and Robert Mondavi Winery. Marketing Napa Valley as a region for wine experts and a tourist destination, the Napa Valley vintners form a tight-knit community. They’re also aligned in their interest to know more about their customers and prospects. In recent years, wine sales directly shipped to consumers, whether bought online or at the winery, have been expanding across the U.S. American Express Merchant Services recommended Global Information Insights to help the vintners better understand their customers and how they purchase. “Being a nonprofit organization, we don’t have the kinds of resources needed for research,” says Stacey Dolan Capitani, marketing and promotions managing director for the Napa Valley Vintners Association. “So this was a fabulous opportunity to get key information that we could pass on to our members and use to reach customers more effectively.” The report showed the vintners their top local customer segments and other retail brands that were attracting the same type of customer — useful information for determining possible joint marketing initiatives. Although the majority of cardmembers purchased at the wineries, customers who purchased both on-site and online had a much higher transaction size. These “dual shoppers” represented only

capabilities and the insights American Express can provide, they have asked for even more. Not simply more information, but more help in analyzing the specific business issues they’re facing. And they are willing to pay for that help. Enter the GI2 Business Insights team, which focuses mainly on retail, emerging industries, travel and entertainment. Last year, the team produced custom analyses for 100 U.S. merchants and more than a dozen merchants outside the U.S. — and demand is increasing. To date, team members have advised a major retailer on where to open a new store, helped an association of merchants understand customer buying patterns and shown a retail giant how its online customers differ from its in-store shoppers. The group has also been instrumental in helping sign and retain merchants. Contracts for both a major supermarket chain and a discount retailer included obligations for American Express to deliver in-depth customer analyses. Working closely with client management teams, GI2 concentrates on large accounts — merchants that tend to have resources dedicated to growth strategies. “They may be making a $30 million investment to open new locations,

11 percent of the vintners’ client base but accounted for 41 percent of spending. A targeted marketing campaign directed to those individuals would make sense, the report concluded. American Express representatives have since been headliners at local conferences to share the findings. “At one presentation, we spoke to about 200 wineries, only about 15 percent of which were not merchant partners.” Kosta recalls. “It was practically a sales presentation for them since we were showing them what American Express can offer.” Since then, many of those vintners now accept our cards. Capitani adds that the study was so well received the association’s members are eager for even more of this kind of information.

Globalization offers an obvious expansion path. This advance will make it possible to offer merchants a global analysis of their entire American Express spending and opportunity.

PAGE _23

for example, and they’re looking to us for advice,” says Ryan Manville, vice president, Business Insights. “In the past, we might have talked to them about a one-time marketing initiative. Now the scale of what we’re doing is much greater and significantly more valuable to the merchant.” As the GI2 effort has expanded in the U.S., there’s also been a steady groundswell of interest among merchants in other markets, Almeida says. Established last year, the International team now offers automated reports in 17 markets, with most of the analytical work supported by a team based in Singapore. The more customized studies have been limited to select merchants in Australia and the U.K. This will change soon, as the team expands its technology capabilities. “We know there’s tremendous opportunity in expanding internationally,” says Nadine Davey-Rogers, vice president, International Information Insights. “Already, we’ve seen huge benefits in Australia and the European market.”

On the horizon Future initiatives point to many more I’s: more informa-

tion, more insights, more international, more innovation. Data collection and analysis is slated to become more automated, which will lead to better, deeper information to feed the core and custom studies. “With continued automation, we can expand the number of merchants we influence, focus our people on the most customized of custom products and deliver strategic consulting,” Almeida says. Globalization offers an obvious expansion path. This advance will make it possible to offer merchant partners a global analysis of their entire American Express spending and opportunity. Other ideas that are taking shape include aggregating data across a specific industry and providing deep analyses of spending trends that groups of merchants can leverage. This project, which has received an initial round of funding from Ken Chenault’s Innovation Fund, is one of many longterm strategies that aim to enhance the value of our information management. However the expansion projects play out, it’s clear that our data capabilities are moving from the back office to the front desk. Analysts within GI2 are doing more than crunching numbers. They’re helping merchants make sense of the results, deepening relationships and even creating a new revenue stream in the process. “Information management has always been a strong asset for American Express because of our closed loop,” Almeida says. “The more we work with our data, the more we realize that there’s so much more the numbers can tell us — and that’s really exciting for both us and our partners.”

m ay b o u r n e h o t e l g r o u p

Hotel Accommodations

H

aving received an in-depth customer analysis from American Express in 2006, Maybourne Hotel Group turned to Global Information Insights once again last fall. Its objective: growth opportunities for premium properties in London, a competitive upscale hotel environment. The

company wanted to ensure it was targeting the right customers, finding opportunities to capture more of the business of existing American Express customers, and exploring ways to attract new cardmembers. The International team’s analysis offered detailed demographics for three of the hotel group’s properties: Claridges, The Berkley and The Connaught. The results confirmed much of Maybourne’s internal analysis of its customer demographics, but it also yielded some new insights. In analyzing the potential for new customers, the team was able to show that the properties were attracting slightly different client bases. Although guests from the U.S. represented the largest customer group for all three hotels, The Berkley appealed to a large proportion of guests from Brazil and Hong Kong. Knowing where its customers are from can help inform how to tailor services, as well as where to invest in marketing promotions. “One interesting finding was that their customers tend to be loyal to one property, which is driven by the character of the hotel,” says Christine Chia, director of Customer Insights who supervised the project. “It reaffirmed for them that there is value in maintaining and marketing that distinct character.” An analysis of “industry outspend” — where customers spend when they leave those hotels — ­indicated a number of retail categories, notably high-end department stores, that are proving to fit well as promotional partners. The analysis also showed that customers are spending in other local hotels, so incentives encouraging guests to dine more often or stay longer at one of the Maybourne hotels might be very effective. “The insights about customers’ spending with competitors and in other industries have been par-

ticularly valuable,” says Nicki Granger, Customer Relationship Management for Maybourne Hotel Group. “We are about to launch a joint marketing promotion with two of London’s top department stores, which is something we wouldn’t have been able to do without this research.”

PAGE _24

ask me how i care

Two American Express customer care professionals — one long-tenured, one newer to the company — talk to each other about the customer care experience.

M I T H OO MA L A N I Customer Care Professional Risk Customer Servicing Network Fort Lauderdale, Florida M i t h o o j o i n e d A m e r i c a n E x p re s s i n 2 0 0 5. H e wo r k s a s a c re d i t A n a l ys t i n t h e R i s k c u s t o m e r S e r v i c i n g N e t wo r k , w h e re h e m a ke s a u t h o r i z a t i o n d e c i s i o n s t o s u p p o r t o u r c a rd m e m b e rs a n d t h e c o m p a ny.

PAGE _25

cArmen suArez

Customer Care Professional Customer Focused Sales Fort Lauderdale, Florida c a r m e n wo r k s i n c u s t o m e r fo c u s e d S a l e s , w h e re s h e h e l p s h ig h - s p e n d i n g c a rd m e m b e rs w i t h i s s u e s re l a t i n g t o d o z e n s o f c a rd p ro d u c t s . S h e h a s s e r ve d o u r c u s t o m e rs fo r 2 2 ye a rs .

Well, Carmen, I’m curious to hear about what it was like when you started at American Express. What changes have you seen over the years? MITHOO:

cArmen:

in the old days, American

Express had only three products, all charge cards. Now we have many — charge, credit, small business cards. i have to know all of my products inside

MITHOO: Are there any changes that have been particularly challenging?

out because i never know which one the cardmember is calling about.

cArmen:

it’s also important to be able to tell

that we didn’t years ago is our

customers what other products or

TBASS survey. it’s sometimes a

services may be suitable for them.

challenge to be measured for every

Here’s another big difference.

interaction by how satisfied the

when i started out in the Risk

customer is, par ticularly when

customer Servicing Network,

you’re dealing with a difficult

everything was paper-based. So

situation. in a very shor t time

things like setting up a dispute or

frame, we’re expected to get to

removing a hold on an account

know our customers, adapt to

or even something as simple as

their needs and solve their issues.

changing an address took a lot

Sometimes that doesn’t go as

longer. Now everything is done

smoothly as we would like. But

online. Say a cardmember calls

it’s impor tant to do what we can

to check if a charge has hit their

to make sure our customers are

statement. Before, we would have

satisfied. it directly affects the

to pull the file and send them a copy

well-being of our company and

of the statement, which could have

how we can be better than the

taken up to a week or more. Now

competition.

i can check their account while

PhOTOGRAPhY: Jeffery Salter

one thing we have today

And i can honestly say my past

they’re on the phone. i’m able to walk

seven years in customer focused

them through step-by-step to make

Sales have been the best time

sure they have what they need. And

of my career here at American

they can print out their statements

Express. Every interaction i have

whenever they want. Being able to

with a customer is a chance to help

help them so quickly makes them

them. And by introducing them to

happier, more satisfied customers.

other products or services that are beneficial to them, we’re increasing the likelihood that they’ll choose American Express every time they pull out their wallet.

PAGE _26

Ca r m e n :

When you’re dealing with

customers every day, you’re faced with such a variety of personalities in sometimes stressful situations. And

How have you been able to keep your skills fresh through the years, without relying so much on “This is how we’ve always done it”?

Mithoo:

different customers have different expectations. You have to learn to adapt to each person and really listen to what they need. That’s such an important factor to the success of the call.

Ca r m e n :

Change can be difficult.

“

I really appreciate the authority I have to make decisions about how to help the customer. Cardmembers call us when they have a problem using their card. If I think it’s appropriate, I can authorize a one-time charge even though there is a hold on the account. It makes me feel good to be able to do that.” — mit h o o m a l a ni

The customer has to know that we

even though we understand there are reasons for their situation and will work with them, we still have a responsibility to ­collect the funds. It’s important they show us they are making a good faith effort to pay us.

time charge for a cardmember even though there is a hold on the account. Maybe the cardmember is trying to rent a car to get to an important meeting. I can allow that charge to go through if I think it’s appropriate. It makes me feel good to be able to do that. You said earlier that you try to adapt to each cardmember and really listen to their needs in order to best help them. Have you found that humor comes in handy in a difficult situation?

I think it’s important to keep an open

empathize with them and value their

mind. That’s the only way you can

business whether times are good or

continue to grow. In my job, the

bad. When they are having difficulties,

more I know, the more successful

we want to show them that we are

I am. If I don’t know my products

willing to work with them. We want to

and their benefits, or don’t under­

keep the relationship strong. When

Ca r m e n :

stand how a change is import­a nt —

you’re in the situation where you’re

helped me is to remember that I’m

not only to the company but to

collecting money, whether it’s a bad

also a cardmember and to try to look

the customer — then I’m not doing

check or the account is late, it’s

at the situation like a customer. I

my job.

likely that customer may have other

might say, “I have an account, too.

accounts that are overdue. By making

I know exactly how you feel right

a connection with them and helping

now. I’ve had this happen before.

them, hopefully they will want to pay

We want to help you, but you also

Ca r m e n :

their American Express bill first....and

have to realize that we have to

the one to initiate humor, because

ultimately still have that card in their

make decisions that are best for

you never know how the customer

wallet when their situation is better.

the company as well. So you need

is going to take it. But when the

to show us that you are willing to

cardmember interjects humor,

work with us.” I think the best thing

I really enjoy it and I’ll reciprocate.

we can do is let them know we

I find those to be the best calls you

are on their side and to help them

can have in a day.

I had a fair amount of work experience before coming to American Express, and possibly have been in the workforce longer than you. But whenever you move to a new company, you’re always looking for someone who can show you the ropes. You started out in credit operations where I am now, so you know what it’s like and how it has changed. If you were my mentor, what advice would you give me to help me be more effective? Mithoo:

‘

That’s a good point. It’s very important to keep the business relationship with our cardmembers especially when they are going through a ­difficult time. That’s so true in ­today’s economy when more people are having trouble paying their bills. However, Mithoo:

When you’re dealing with customers every day, you’re faced with such a variety of personalities in sometimes stressful situations. And different customers have different expectations. You have to learn to adapt to each person and really listen to what they need. That’s such an important factor to the success of the call.” — carmen suarez

What I have found has

I’m not comfortable being

understand what they need to do to correct the situation. Mithoo: Yes. And I really appreciate the authority I have to make decisions about how to help the customer. Cardmembers call us when they have a problem using their card. They don’t really care if the system is down or if a payment hasn’t hit their account yet. They want to know how soon they will be able to make that purchase. I can authorize a one-

I try to use humor as much as I can when it’s appropriate. I might have a cardmember who is angry, and I still have to update their account information, their phone numbers, their e-mail, as well as collect their payment. However, they just want to get off the phone once they have authorized their payment. So it helps to use some humor to make them willing to take the time to update their information.

Mithoo:

PAGE _27

My experience at American Express is that we’re willing to explore new avenues or new solutions. We regularly ask our cardmembers and employees for their feedback, and we invest a lot of resources in honestly evaluating what they have to say to make the appropriate changes. You hear about companies all the time that have been resistant to change. From what I’ve seen and experienced at American Express, change is the norm. We’ve been around for more than 150 years, and that kind of longevity has been possible because we’re willing to take risks and make changes.

MITHOO:

I was very lucky when I started at American Express. The trainer I had really enjoyed what he was doing and was very knowledgeable. That made it easier to learn from him. Overall, what impressed me the most was the amount of time the company invests in training from the beginning. We all go through an extensive training program over a three-month period. The company wants to make absolutely sure we’re fully prepared to serve the customer. That showed me that American Express not only cares about the cardmember, but it cares about me and wants me to succeed. And training and learning is a continuous process. As a matter of fact, I’ll be in another training session tomorrow.

MITHOO:

I’ll say, “Wow, you and I make a good team. Look how much we’ve accomplished together. You can use your card, and your information is now current. Thanks.” I also speak different languages. If I detect that the cardmember is from India, for example, I can talk to them in several different dialects. It helps make them feel more comfortable, especially if they’re distressed. And I speak Spanish as well. cArmen:

Mithoo, when you think

about the training you’ve gotten at American Express, what stands out the most for you? what’s been the most helpful?

It’s a constant learning process, and things are always changing. Have you found that our customers’ expectations have changed over the years? Do they expect more from us? cArmen:

Absolutely. it’s a very tough

marketplace out there with so many offers from so many competitors. More than ever, we have to prove ourselves to our customers every day by providing excellent service. And bad news travels faster than good news. So we always want to leave a customer with a memorable experience that they’re going to

cArmen:

share with family and friends.

true American Express veteran!

cArmen suArez

oK, now you sound like a

/ carmen began her career at American Express 22 years ago. Today, in

customer focused Sales (cfS), she helps high-spending cardmembers with issues related to dozens of different charge and lending products. She is also responsible for enhancing our relationships with cardmembers by offering them additional products and services. carmen has been recognized as a cfS top performer for quality and sales, and has won the Achievers’ circle Award twice. Prior to joining cfS in 2001, she held several positions in credit operations. carmen is married, with

ILLUSTRATION: Peter Arkle

two daughters. She enjoys spending time with her family, travel and spin cycling at the gym.

meet our customer care Professionals

MITHOO MALANI / Mithoo embarked on a second career when he joined American Express as a customer care professional in 2005. Prior to that, he enjoyed a successful career in computer and information technology as an engineer, and in product marketing and management with U.S. companies in the U.S., Latin America, Europe and India. Mithoo currently works in the Return Check Department within the Risk Customer Servicing Network (formerly known as Credit Operations). He has also held positions as a credit analyst with the High-Spending Cardmember unit and the Deceased Accounts Resolution Team. Mithoo was born and raised in India. He and his wife, Myriam, have been married for more than 30 years. They have two grown sons and two grandchildren, with another on the way. Mithoo enjoys travel, chess, photography and eBay.

PAGE _28

T h e r e s a a d k i n s Phoenix

How NoT to wow the c ustomer customer

i would have to say the voice response systems irritate the &%$&* out of me. it is so annoying to have to keep pressing buttons to get where you want to go, when all you really w a n t t o d o i s t a l k t o a H U M A N ! A n d o n c e y o u g e t t h a t h u m a n , f o r g o o d n e s s s a k e , p ra y t h e y have a personality!

J a s o n B u r a k N e w Yo r k i had an experience where the person behind the counter walked away to argue with a c o w o r k e r o v e r w h o h a d / h a d n ’ t c l e a n e d u p a c o u n t e r. S h e t h e n c a m e b a c k , t o o k my o r d e r, ra n g i t u p a n d w a l k e d a w a y a g a i n t o c o n t i n u e t h e a r g u m e n t . S h e c a m e b a c k y e t a g a i n t o c o n f i r m m y o r d e r a n d t h e n w a l k e d a w a y a g a i n t o a r g u e f u r t h e r. A f t e r t h r e e m i n u t e s , i w a l k e d o u t o f t h e s t o r e g l a d i h a d n ’ t p a i d a ny $ . a m o l m e h t a Delhi, india M a ny c u s t o m e r s e r v i c e r e p r e s e n t a t i v e s d o n o t a t t e m p t t o l i s t e n t o t h e c u s t o m e r a n d i n t e r r u p t , b e l i e v i n g t h a t t h e y k n o w w h a t t h e c u s t o m e r w a n t s . To m e , h a l f t h e b a t t l e i s w o n i f y o u h e a r o u t t h e c u s t o m e r ’s g r i e v a n c e w i t h d u e a t t e n t i o n .

r o b i n r a k e s Greensboro, North carolina

we all have them. those pet peeves about poor service we’ve experienced in shops and restaurants, and on the phone. in a discussion on in the loop, we asked you to tell us what bugs you the most. here’s what you had to say.

R e g a r d l e s s o f w h e t h e r i ’m d e a l i n g w i t h s o m e o n e i n p e r s o n o r o v e r t h e p h o n e , i d e t e s t t h e f e e l i n g t h a t i a m s o m e h o w b o t h e r i n g t h e m . R a t h e r t h a n c o p a n a t t i t u d e my s e l f, i t r y t o m a k e t h e p e r s o n a w a r e o f h o w t h e y a r e c o m i n g a c r o s s . i ’ l l a s k i f t h e y ’r e h a v i n g a b a d d a y o r a s k how to pronounce their name as a way to engage them. . . eye contact, a smile, a pulse!

a m i e l r o s a r i o S yd n ey, A u s t ra l i a w h a t i r e a l l y h a t e a r e a u t o m a t o n s . i ’m t a l k i n g a b o u t t h o s e w h o j u s t s a y a n d d o t h i n g s o u t o f r e f l e x w i t h o u t r e a l l y m e a n i n g a ny o f i t . T h e y s a y, “ t h a n k s , ” s a n s e y e c o n t a c t , o r w o r s e , “ H a v e a g o o d d a y, ” a n d i t ’s 8 p . m . !

J i l l w a l t h e w London i ’ v e h a d t h e e x p e r i e n c e o f w a i t i n g i n l i n e , g e t t i n g t o t h e c o u n t e r, a n d t h e n t h e a s s i s t a n t t u r n s a w a y t o a n s w e r t h e p h o n e . P r i o r i t y s h o u l d b e g i v e n t o y o u r fa c e - t o - fa c e c u s t o m e r s . Now i just put back my purchases and leave if this happens.

Thanks to everyone who took part in the discussion. To read everyone’s comments or to add your own, head over to In the Loop on AmexWeb.

Lo o K w h o ’ s

Ta l K i n G

CORRespondents

CONTE X T

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