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Customer Retention

1. American Express focuses on customer retention through treating every customer with importance and providing an elite experience. 2. The company uses a real-time customer success platform in collaboration with Salesforce to provide rapid, dynamic service through real-time information across departments. 3. American Express demonstrates strong global connectivity by replacing a customer's card within days when it stopped working during a business trip abroad.

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Gagan Agarwal
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174 views3 pages

Customer Retention

1. American Express focuses on customer retention through treating every customer with importance and providing an elite experience. 2. The company uses a real-time customer success platform in collaboration with Salesforce to provide rapid, dynamic service through real-time information across departments. 3. American Express demonstrates strong global connectivity by replacing a customer's card within days when it stopped working during a business trip abroad.

Uploaded by

Gagan Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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American Express Customer retention strategies

Customer Retention:
The concept of customer retention in marketing is the process of getting existing customers into
continuing to purchase products and services from your company. It's distinct from the selection
of a consumer or lead generation because you've already sold the client at least once.

Best customer retention tactics allow you to establish long-term relationships with consumers who
will be loyal to the brand. Also, they might even spread the word within their circles of influence,
which could turn them into a brand ambassador(s).
While most businesses traditionally spend more money on customer acquisition because they see
it as a quick and efficient way to increase revenue, customer retention is often faster and costs up
to seven times less than customer acquisition on average. Selling to consumers you already have
a partnership with is often a more efficient way to increase sales because companies do not need
to acquire, train, and retain new ones.
Companies who turn their attention on customer retention also consider it a more productive
approach as they sell to consumers who have already expressed interest in the goods and are
engaging with the company, which makes it easier to build on their sales interactions. Retention
is, in reality, a more sustainable business model, which is a gateway to sustainable growth. The
evidence is in the numbers: according to Bain & Company reports, raising customer retention
by 5% will lead to an increase in earnings of 25%–95%, and the probability of turning a current
customer into a return customer is 60%–70%, whereas the possibility of transforming a new lead
is 5%–20%, at best.
Customer Retention Strategies by American Express

1. Treating every customer IMPORTANT

It's more than 160 years,


American Express has invested
in building one of the most
respected brands in the world.
Since the company's inception
as an express postal service in
1850, consumer health, loyalty,
and comfort have been core
values. This commitment to
cater service has driven
innovations from Travellers
Cheque to the smooth and
iconic credit cards bearing the
words "Member Since." But
today's competitive landscape
is unlike any before, fuelled by rapid innovation and rife with startups bent on disrupting
the status quo.

The onboarding process for American Express is fast and impactful, leveraging multiple
channels. In my experience, the onboarding process was initiated immediately after the
approval process, but even before, I saw my Platinum physical card. This includes
strengthening my Platinum benefits, the ability to enroll in additional services (such as the
Pay Over Time functionality). Online contact also arrives from Platinum sponsors such as
Amazon, highlighting the platinum card's link to the Amazon account and the opportunity
to use AmEx points for Amazon purchases.

Enhancing the feel of financial


service is an art. American Express
uses varied components of value
propositions and offers its
customers an EXPERIENCE. The
entire kit of a credit card given an
elite segment touch and feel to the
service buyers.
2. Real-time Customer Success Platform

In collaboration with Salesforces has initiated to deliver a rich customer experience with
the help of real-time and critical information.
American Express has developed a tool for the sales team named Chatter and Salesforce
1 Mobile App, enabling different departments to collaborate and communicate in real-time
to cater to customer problems. This customer focus initiative, with the help of rapid and
dynamic innovation, empowered more than 60,000 employees of American Express
through real-time information. By turning a chunk of data into knowledge and anticipating
the needs of the customer, American express is enhancing customer expectations.

3. Global Connectivity

American Express is well known for its level of reach within their customers. They give
importance to every minute details of the customer need. A recent experience shared by
Mr. Hitesh Kakkar, COO, CPM India, who is a Gold AmEx cardholder, signifies the reach
of American Express. He was on a business trip to Dubai and found that his AmEx card is
not functioning at the hotel reception on Day1. Subsequently, he reaches out to the online
customer support for help. With great conviction and assurance, he was delivered a
replacement of his card directly to his hotel suite.
This experience is one of a kind. The customer satisfaction was so high that within a few
days, he switched to Platinum card.

4. Social Media Engagements

American Express knows that with its viral "many to many" social connections will create
more and more stories about AMEX than they could ever achieve on their own as those
followers share the content of AMEX including videos, images, and articles in text.

Looking at the key metric on the


"Chat about this" Facebook page
of American Express, the
amount of crowd-sourced
articles at a given moment in
time is 13,406 (this is the number
of actions such as views,
reviews, and tweets from fans of
AMEX).

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