Most American Express card members use their Amex cardsfor travel expenses and business entertaining. In a retail
store – or online – they almost automatically reach for a Visa or
MasterCard.
Retailers would like to keep it that way, because
American Express's discount rate to merchants is higher
than the other two cards. So many stores which actually
accept the American Express card never put the Amex
decal on their doors. Instead, when a customer presents
a maxed-out Visa or MasterCard, they discretely mention
that they take American Express as well.
A BrainPosse member developed a marketing and promotion
program to get Amex decals on stores' doors and get
customers used to using the card at retail.
The mall-based program offered incentives to card
members who presented receipts for purchases made from
qualified mall merchants with the American Express card.
The incentives ranged from gift certificates redeemable
at mall stores accepting the card to admission to
concerts at malls after closing time on Sundays.
Because only merchants with American Express decals on
their doors qualified to participate in the promotion,
decals went up all over the malls.
The program generated $700 million in increased charge
volume – and over $30 million in revenue for American
Express – at a cost of less than $17 million.The result:a $13 million profit and an ROI of 76.5%.
