The Internet And American Express - A Case Study
Back in early August, American Express held one of its semi-annual analyst meetings - with one of the focus topics being how the Internet has affected American Express. A copy of Jud Linville's presentation (along with his speech text) are available online and make for some very interesting reading. Linville is Amex's President of US Consumer Card and also responsible for the company's global interactive business development. During the presentation, Linville reviews the three major phases (1.0 - Cost Reduction, 2.0 - Business Accelerant, and 3.0 - Building Our Brand) of Amex's online efforts over the last decade.
According to Linville, "simply put, the Internet has become essential to our business model -- a powerful channel to interact with our affluent customers. And -- one that I trust you will see -- simultaneously reduces costs, drives Cardmember spending, and builds our Brand."
Among some of the more interesting statistics shared by Linville: Amex receives a consumer card application over its web site every 8 seconds, nearly 60 percent of its rewards are redeemed online, and over half the cards in the UK are acquired via the online channel.
He concludes with the remark: "The core characteristics of the web -- speed, massive information processing, dynamic real-time interactions, personalization and cost effectiveness -- help accelerate our business process innovation, drive a true “Network Effect,” and ultimately build, not merely leverage, but build our brand."
If you're interested in the impact of the Internet on financial services - and in the evolution of that impact over time - Linville's presentation makes a delightful case study.
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