AMERICAN EXPRESS MODEL

American Express Business Model

[Date of Submission]American Express Business Model

American Express

American express is a global service company with headquarters in the three main financial centres of the world, which include New York, United States of America and Manhattan. The company provides access to customers to certain financial products and services that helps them being in contact with their financial standings and in the creation of their business and making it a success.

The key products of the company include cards like charge cards and credit cards and also traveller's cheque. The company is also known by the name of Amex, which stands for American Express; it is an American Multinational, which owns a large share of the credit cards being used by the consumers in the overall credit card market of the United States of America, an average of twenty four percent of the market share is owned by the Amex group in the market, which is the highest market holding by a single company (Amex ABS Investor, pp. 1-19).

Customer Segments

The customer segments that are being targeted by the Amex are the ones that are mostly belonging to high class or to the corporate sector. Mainly the accounts of Amex include corporate clients, who are mainly relying on their credit cards or debit cards or travellers cheque instead of cash. Therefore, it can clearly be said that the targeted customer segment of American Express is the high end consumers that have a high expense trend through plastic money.

Moreover the company also focuses upon that customer that is not as high end as their other customers but is enjoying an above than average lifestyle and are said to be above than their average customers. Therefore, it can be said that the American Express is following a segmentation approach in which it is targeting the high end customers that precedes the average customer or an average income level person, it can also be said that the customers with high incomes are the target customers, who are mostly the ones relying on the plastic money instead of the actual cash.

Customer Relationships

As the customer segments that are being addressed by the American Express are all high end customers, Amex understands their customers look for exclusive treatment and relationships from their financial services provider. To ensure this, Amex aims to deliver prompt reply whilst providing them with a dedicated personal assistance even on their day to day transactions and related needs as a proactive approach in cases the customers face any problem(s).

Furthermore, another segment of relatively low income customers are catered by Amex but these customers earn more than average and so they prefer to be made feel special by their representatives. Although dedicated personal assistance would be costly in these cases, American Express ensures response to their query(s) to be prompt and attended on a personal note (Campbell et. al, pp. 22-35). They are integrated with the business model of Amex through the increase use of ATMs which is designed so that ...