American Express No

8/13/2019 American Express No

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CUSTOMER SATISFACTION STUDY OF

AMERICAN EXPRESS CARDMEMBERS

FINAL PROJECT REPORT(MARKETING)

BRIJENDRA SINGH DAHIYA

ROLL NUMBER: 991083

PGDBM (FMG WAVE 8

F!"# $%&!!' ! )*+*,#)#+-


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CERTIFICATE OF COMPLETION

Certified that the project report entitled customer satisfaction study of

American E !ress cards"# submitted by $ri%endra &in' a iya# Roll

No. **+,-. , PGDBM pro ramme, is the compilation of !or" done by him

under my o#erall super#ision.

r/ M/ L/ 0arma

(Interna1 'uide)

N*)#: B"./#+ "* S.+,& D*&. *R!'' N!2 991083

D*-#:

P'*%#: N# D#'&.


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TABLE OF CONTENTS

12 E4#%5-.6# $5))*"

72 C5$-!)#" $*-.$ *%-.!+

32 I+ .*+ %"# .- %*" $%#+*".!

2 S.,+. .%*+%# ! - "!/#%-

2 P"!/#%- !;/#%-.6#$


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A%>+! '# ,#)#+-$

I 2ou1d 1i3e to e !ress my 'ratitude to r/ M/ L/ 0arma# my interna1

'uide# for is 3ind mentors i! and 'uidance in assistin' me 2it my fina1

!ro%ect/ 4is academic in!uts !ro5ided me 2it insi' ts t at 2ere

in5a1ua61e for com!1etin' t is !ro%ect/

I 2is to e !ress my dee! 'ratitude and sincere t an3s to American

E !ress $an3 for 'i5in' me t e o!!ortunity to en ance my s3i11s in t e

fie1d of credit card mar3etin'

I 2ou1d a1so 2is to t an3 Mr/ Ra%es aryani# Aut ori7ation ead#

American E !ress for !ro5idin' me 2it 5a1ua61e in!uts re1atin' to t e

functionin' of American E !ress as an or'anisation/


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E8EC9TI0E &9MMAR:

$he credit card industry in %ndia has re istered an encoura in ro!th in recent times, but the

usa e pattern of credit cards remains a point of concern, those in the industry say. $here has

been a se#en&fold increase, !ith the number of cardholders touchin o#er '( la"h. $hese

fi ures point to!ards the fact that the credit card industry in %ndia is ro!in at a bris"

annual rate of ') per cent and is e*pected to ro! at a similar rate in the comin years.

+hile issuin the cards may seem to be easy, the challen e for the ban"s lies in bein able to

mana e their portfolios by "eepin the delin uency le#els at the lo!est and customer

satisfaction le#els at the hi hest. Customer satisfaction is the "ey to success. -ou !ant

customers to be happy !ith the products and ser#ices you pro#ide. %f they feel they ha#e

recei#ed ood #alue for their money, your business !ill prosper. Gettin your customers to

tell you !hat s ood about your business, and !here you need impro#ement, helps you to be

sure that your business measures up to their e*pectations.

/part from attractin potential card users, customer retention is also one of the most

important factor influencin a card issuer s success. /merican 0*press entered the %ndian

Mar"et earlier than most other players present today. /m0* has been able to enerate a lar e

base of cardmembers till date. +ith the influ* of ne! financial institutions in the card mar"et,

people ha#e started usin cards on a more re ular basis. $he le#el of ser#ices pro#ided by

these or anisations is increasin day by day. /m0* needs to "eep pace !ith, if not score o#er

these companies on ser#ice le#els bein pro#ided to the customers. %n order to ensure that the

e*istin customers stay loyal, /m0* has to ascertain !hether its e*istin customers are

satisfied !ith its current ser#ice offerin s.

$his research has tried to study the satisfaction le#els of a sample of 1)) /merican 0*press

cardmembers. $hese respondents each hold /m0* cards, !hich may be of different "inds.

$hese could be any one of the ( different cards offered by /merican 0*press.


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C9&TOMER &ATI&FACTION

Customer satisfaction is the "ey to success. Gettin your customers to tell you !hat2s ood

about your products or ser#ices, and !here you need impro#ement, helps you to ensure that

your business measures up to their e*pectations. No matter !hat type of business you2re in,

sur#eys are a #aluable tool that help you collect the information you need to understand,

e#aluate, and enhance customer satisfaction.

Customer satisfaction sur#eys help to3

1. %mpro#e customer, client, or employee loyalty.

4. React uic"ly to chan es in the mar"et.

'. %dentify and capitali5e on opportunities.

6. Beat the competition.

7. Retain or ain mar"et share.

8. %ncrease re#enue.

9. Reduce costs.

%t ta"es a lot less money to increase your retention of current customers than to find ne!

ones&but % "no! % don2t i#e it as much effort as % should because it does ta"e a lot of ener y

and effort: Customers li"e to interact !ith people !ho do more than process and handle

transactions. $hey often re uire access to technical information and e*pect ood

interpersonal and communication s"ills. $o accomplish these objecti#es, companies need to

share missions, #isions and oals. $hey need to monitor chan in customer e*pectations and

modify the deli#ery of ser#ice and product uality to match these e*pectations on an on oin

basis.


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I+ .*+ C"# .- C*" S%#+*".!

$he credit card industry in %ndia has re istered an encoura in ro!th in recent times, but the

usa e pattern of credit cards remains a point of concern, those in the industry say. ;e#en

years bac", %ndia had a base of around fi#e la"h credit cards. $here has been a se#en&fold

increase, !ith the number of cardholders touchin o#er '( la"h. $hese fi ures point to!ards

the fact that the credit card industry in %ndia is ro!in at a bris" annual rate of ') per cent

and is e*pected to ro! at a similar rate in the comin years. $his fortifies the #ie! that

conser#ati#e purchasin ideas are i#in !ay to the bi in&thin . But it is the usability that

raises doubts.

/ccordin to a sur#ey by the Credit Card < Mana ement Consultancy =CCMC>, 91 per cent

of first time credit card applicants in the country ha#e e*pressed the need for ad#ice on

appropriate card selection despite the plethora of cards a#ailable in the mar"et. $hrou h this

sur#ey it has come to realise a lon felt need of potential and e*istin cardholders for ad#ice

on suitable selection of a credit cards. $he !hole idea behind the introduction of the credit

cards !as to increase the purchasin capacity of the cardholder. +ith this in mind, the

forei n ban"s launched a credit card blit5"rie on the %ndian customer.

$he inno#ations ha#e already be un to sho! their effect. $he ;tandard Chartered Ban" has

seen its credit card base shoot up after the launch of its Global Rupee Card in March last

year.

%t has seen the fresh issuance of lobal card increase by more than one la"h, and the ban"

no! has a base of more than half a billion. But the real challen e for the ban"s is to ma"e the

holder spend more on the card. Goin by estimates, %ndia has a lon !ay to be any!here near

the matured mar"ets. $he mar"ets li"e the ?nited ;tates and 0n land ha#e an a#era e annual

card spend of 1,')) and ',8)) dollars respecti#ely.

$he credit card players !ill ha#e to thin" about simplifyin the forei n e*chan e

transactions. +hen one uses the card, it is entirely his responsibility to ma"e sure thate*chan e controls ha#e been complied !ith. $he ban"s that issue the cards, ha#e made it


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abundantly clear that one has to loo" out for himself. %t is upto him to find out the facts of

re ulatory life. $he real point of !orry is the spendin on the credit cards. /ccordin to

estimates, the a#era e card spendin in %ndia is e#en less than that in %ndonesia. $hose in the

credit card business say that per capita credit card spendin in %ndia is about fi#e hundred

dollars =Rs 41,7))>, !hereas in %ndonesia, it is about 89( dollars =Rs 4@,176>. /t present

there are o#er a do5en players in the credit card mar"et in %ndia, and the fact is the forei n

ban"s are clearly the leaders. $he leaders !ill surely be identified by the inno#ations for the

card users.

But the alarm has been raised for the ban"s by the fi ures that sho! that !hile the a#era eusa e in Malaysia is 49 times annually, in %ndia it is only 11 times. ;ome of the "ey factors

impactin the cards business in %ndia are limited credit, !ide eo raphical spread, limited

telecommunication infrastructure and emer in re ulatory controls. $he other players feel

that the card acceptance base in %ndia has to be !idened. ;u estions include credit card

usa e at petrol pumps and rail!ay boo"in s.

$hey also point out that thou h the cards business has been in the country for lon , but e#entoday the insurance premium cannot be paid by card. $hou h A%C is tal"in about the

introduction of this facility to customers, but its turnin into reality may ta"e time. $here is

tal" of !idenin the card business !ith ne! features, but the present scenario does not paint a

positi#e picture, !ith many loopholes remainin to be plu ed.

f the t!enty million ta* payers in %ndia, more than ten per cent of them are cardholders.

$hose in the industry point out that this fi ure is not bad, considerin the fact that, the cards

business is still in its initial sta es. o!e#er, the players feel that the business has not

reached an optimum le#el to say that they are ma"in money. 0#en the lar est player in the

%ndian mar"et does not still ha#e the economies to ma"e the card business really profitable in

%ndia, despite the fact that it has more than one million credit card holders. Aess than t!o per

cent of pri#ate consumption spendin in %ndia is done on cards.

+hile issuin the cards may seem to be easy, the challen e for the ban"s lies in bein able to

mana e their portfolios by "eepin the delin uency le#els at the lo!est. u e in#estments in


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systems and infrastructure are, therefore, a necessity. $he increase is bein attributed to ne!

ideas such as round&the&cloc" functionin of card issuin ban"s and pullin out all stops e#en

at a loss, to rab a si5eable share of the e*pandin pie. Not to be left behind in this race, e#en

the bi brother, the ;tate Ban" of %ndia in association !ith G0 Capital entered the card

business.

$he spurt in the card business has athered momentum durin the past couple of years. or

instance, the on Eon < ;han hai Ban"in Corporation = ;BC>, !as in the credit cards

business since se#en years, but from 7),))) card holders in 1@@9, it has about three la"h card

holders no!.

%ndia s fastest ro!in credit card company & ;B% Cards 4.7 la"h credit cardsF47 citiesF18

months. $he joint #enture bet!een %ndia s lar est ban" ;tate Ban" of %ndia and one of the

!orld s leadin financial ser#ices companies G0 Capital, ;B% Cards < Payment ;er#ices

=;B% Cards> has issued 4.7 la"h credit cards across 47 cities =the lar est distribution net!or"

in the payment card industry> !ithin 18 months. $hereby achie#in the tar et in the fastest

period seen in %ndia s payment card industry.

;B% Cards < Payments ;er#ices attributed this success to ;B% s enormous brand e uity, and

unparalleled retail branch net!or" coupled !ith G0 Capital s payment card process and

technolo y e*pertise. e also hi hli hted ;peed, ;implicity and ;er#ice as the "ey dri#ers of

ro!th for the ;B% Card. ;peed ?ni ue and e*clusi#e 16&day a#era e turnaround time,

coupled !ith a#ailability of the ;B% Card in 47 cities in just 18 months. ;implicity ;imple

application process !ith minimum documentation. ;er#ice 46 hours a dayH9 days a !ee"

local call access to the ;B% Card elpline across 47 cities. /s a result of the focus on the

;peed, ;implicity and ;er#ice ro!th platform, ;B% Cards today offers the lar est

distribution and !idest cash ad#ance net!or" for %ndia s middle class customers. ;B%

Cardholders can access cash for emer ency purposes from o#er 17( ;B% branches across 8(

locations in %ndia.

INTERME IARIE& 3


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%n their attempt to increase their mar"et share, credit card companies are optin for Direct

;ales / ents. $hese D;/s are paid a flat rate a ainst the appro#ed applications. $hey are

also pro#ided !ith bonuses either in cash or in "ind at re ular inter#al or if they cross a

certain minimum limit. $he D;/ team comprises a ressi#e salesmen !ho #isit different

or anisations and professionals. $hey collect filled forms and produce them to the ban" for

appro#al. /fter cards are issued they also deli#er the same to the indi#iduals.

PROMOTION

$he chan in trends in the payment systems are lobal and e#en in %ndia re#ol#e around the

chan e in customer needs and the e#olution of financial mar"ets. $raditionally %ndians li"e to pay in cash or at the most a#ail the ser#ices of a ban". /s a result credit card companies had

to educate the consumers and spread a!areness of the uses of its products. $he companies

ha#e tried to address this issue throu h promotional campai ns3

Placin of ta"e a!ay firms of credit card at more than a thousand merchant

establishments.

/ppointin of D;/s?sin business ma a5ines and ne!s papers for ad#ertisement.

Mailin of forms alon !ith contests to professionals and middle mana ement e*ecuti#es

etc.

$appin the et member route

Reducin their minimum eli ibility criteria and chan in income documentation

structure.

%ntroduction of photocards.

$yin up !ith durable consumer oods manufacturer = e. . nida, Philips > to sell their

products.

Pro#idin /$M facility to their card holders

$ra#el assistance #ia teleban"in /


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C!) *"*-.6# P!$.-.!+ ! F!"#.,+ B*+>$ .+ I+ .* !" FY 7000 (R$ )+

HSBC CITI STAN ABN BNP DEUB BOA AN?G AMEXIncome 12476 18778 11965 7302 2622 6609 8715 14630 4450Net Profit 1215 2513 1853 1188 215 511 1528 1801 277Net Worth 8373 9915 7170 5760 1973 5432 6867 11323 2579Deposits 87547 102032 50060 34229 10601 21673 25117 84777 14183

Adv nces 43023 66201 43188 38964 6751 17621 36574 42334 8919Investments 49185 42300 31400 27171 10577 20992 13013 48862 12266!pre d "#$ 3%1 4%7 4%8 3%9 2%7 4%8 3%6 3%8 3NPAs & Net'orth "#$ 5%3 7 12%2 2 0%3 17%2 10 0%1 14%

()NW "#$ 14%51 25%35 25%84 20%63 10%90 9%41 22%25 15%91 10%74*A( "#$ 10%3 10%5 9%5 10%1 9%5 10%4 12%9 10%9 10%

C4ARGE CAR &

Char e cards are similar to Credit cards, e*cept that on the due date for payment, you ha#e to

pay the !hole outstandin amount. -ou can2t part settle the amount and pay the rest later.

COMPARISON

&e1ect Card Issuers $rand Card Ty!e Acce!tance

/merican 0*press Gold /me*%nternational

/merican 0*press Green /me*%nternational

Ban" f %ndia %ndia card Master DomesticBan" f %ndia $aj Premium Master Domestic

Canara Ban" Can card Master DomesticCanara Ban" Can card Iisa Domestic


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Citiban" N/ Diner s Club Diner s Domestic?nion ban" of %ndia %ndia card Master Domestic

COMPARISON OF CREDIT CARDS

C*" I$$5#"$ B"*+ C*" T # A%%# -*+%#

/merican 0*press Gold /me* %nternational/merican 0*press Green /me* %nternational/NJ Grindlays Ban" Gold Master Domestic/NJ Grindlays Ban" Gold Iisa Domestic/NJ Grindlays Ban" ;il#er Master Domestic/NJ Grindlays Ban" ;il#er Iisa DomesticBan" f %ndia Gold Na#y Iisa DomesticBan" f %ndia ;tandard Na#y Iisa DomesticBan" f %ndia Iisa Gold Iisa DomesticBennett Coleman $imes Master DomesticBan" f Baroda Bharat Premium Iisa DomesticBan" f Baroda !n B B DomesticBan" f Baroda 0*clusi#e Master DomesticBan" f Baroda Global Iisa %nternational

Ban" f Baroda Gold Iisa DomesticCitiban" N/ GoldHPreferred Master %nternationalCitiban" N/ GoldHPreferred Iisa %nternationalCitiban" N/ %ndian il Master DomesticCitiban" N/ ;il#erHClassic Master %nternationalCitiban" N/ ;il#erHClassic Iisa %nternationalCitiban" N/ +omen Iisa DomesticCitiban" N/ ++ Iisa Domestic

;BC Classic Master Domestic;BC Classic Master %nternational;BC Classic Iisa Domestic

;BC Classic Iisa %nternational;BC Gold Master Domestic;BC Gold Master %nternational;BC Gold Iisa Domestic;BC Gold Iisa %nternational

%C%C% ;olid Gold Iisa %nternational%C%C% ;terlin ;il#er Iisa Domestic%C%C% $rue Blue Iisa Domestic;B% Classic Iisa Domestic;tandard Chartered Classic Master %nternational;tandard Chartered Classic Iisa %nternational;tandard Chartered Cric"et Iisa %nternational;tandard Chartered 0*ecuti#e Master %nternational


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;tandard Chartered 0*ecuti#e Iisa %nternational;tandard Chartered Gold Iisa %nternational

With the credit c rd tr+,- .ecomin/ n intern tion , citi en iss+ers h ve .e/+n

hi/h,i/htin/ the v ,+e dded fe t+res offered ,on/ 'ith the . sic prod+ct% Whi,e

some of them re offerin/ ttr ctive interest r tes others re ,+rin/ c+stomers .-

their re' rd schemes% With p,ethor of choices on offer it is not e s- to come to

decision on n- p rtic+, r c rd%

C!) *".$!+ .+ $#"6.%# ! #".+,:

1% irst there s the %"# .- '.).- % A,, . n s h ve different ,imits set for c+stomers

dependin/ +pon the t-pe of c rd in their possession% ven 'ithin p rtic+, r t-pe

of c rd ,imits m - v r- dependin/ +pon the credit 'orthiness of the individ+ ,%

his depends mon/ other thin/s on the /ross income of the individ+ , nd the

period for 'hich he&she is +sin/ the c rd% o'ever some . n s ,i e *iti. n nd

Americ n press h ve c rds th t h ve no set credit ,imit% Ame h s ch r/ec rd 'hich h s no +pper ,imit nd ,,o's one to spend s m+ch s one ,i es

"provided the ho,der rep -s the mo+nt t one /o$%

2% !econd criteri co+,d .e the '!$- %*" '.*;.'.- % If one is tr ve,,in/ nd h s ,ost

his&her credit c rd then reportin/ the ,oss 'i,, not .e m+ch of pro.,em% !:*

*iti. n !t nch rt nd Ame c n .e re ched from n- corner of the 'or,d for

inform tion on one s c rd s 'e,, s for reportin/ the ,oss% )thers 'i,, m i, rep, cement c rd to the ho,der s m i,in/ ddress 'here s Ame 'i,, rep, ce the

c rd 'ithin 48 ho+rs free of cost% ;i .i,it- for ,ost c rd is ni, for *iti. n !:*

Ame "once the . n is informed .o+t the ,oss$ nd the !t nch rt photo c rd%

o'ever the non photo c rd c rries ,i .i,it- of (s 1 000%

3% No' d -s ,most ,, c rds come 'ith v rio+s ,!! .#$ tt ched% hese inc,+de

ir,ine tic et .oo in/ nd ins+r nce .enefits on ,ost ,+// /e nd ccident ,

de ths% !:* for e mp,e offers disco+nts of 3%5# on domestic irf res nd


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6%5# on intern tion , ones if tic ets re ch r/ed to their c rds% he , test in ,ine

of v ,+e dded fe t+res re the re' rds pro/r ms% ere c rdho,der e rns

cert in n+m.er of points .- spendin/ p rtic+, r s+m of mone-% !t nch rt fore mp,e +ses conversion of (s% 125 "spent in Indi $ or (s% 80 "spent .ro d$

for one point% !:* on the other h nd on,- ,,o's points co,,ected to .e

s


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D#%. .+, !+ - ".,&- C"# .- %*"

+/ 4o2 muc is t e %oinin' fee and t e annua1 fee;

Generally, a card !ith a hi her annual fee enjoys more benefits li"e hi her credit limit,

hi her accident insurance co#er, accessibility to airport loun es, tra#el discounts etc. at

least the used to be the case. +ith cutthroat competition bet!een the card issuin ban"s,

players are ready to !ai#e joinin fees and also one&year membership fees for anyone. Grab

these offers, or ne otiate this for yourself.

and then the normal rates apply. But a ain this is a temporary

solution to a chronic problem.

2> at is t e reac ;

Not an important uestion & most outlets in %ndia accept both the Master card and the Iisa

card, and most credit card companies pro#ide Iisa or Master cards. ;o its fairly simple, and

doesn t need much head scratchin & they2re all more or less the same. ne thin you could

do is to chec" out for the /utomated $eller Machines nearest to your house or !or" place


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=/$Ms & almost all credit card companies no! pro#ide you the facility of !ithdra!in cash

from machines & % uess for thin s that cards just cant buy. $hese machines are called /$Ms,

and are helpfully scattered all o#er the cityHcountryH!orld>. a#in more /$M outlets in

$hailand !ouldn t be of any rele#ance to a person !ho rarely tra#els abroad, thou h it may

certainly be a oal to !or" to!ards after buyin the card. Please also remember that /me*

credit cards are not part of the IisaH Master chain, and ha#e a separate chain of outlets !here

it s accepted.

7.Is it a G1o6a1 card;

No! this could be useful to you if you are an o#erseas tra#eler. / Global card can be used for payin e*penses in forei n currency just li"e you use a credit card to pay in rupees.

No!adays, a Global card is bein issued at the same cost as for a similar domestic one. %t is

better to ha#e a lobal card, especially if there is no premium attached.

8.4o2 usefu1 are 6randed or affinity cards;

/ partnership bet!een a card issuer and the non&profit, social or lifestyle association is !hat

results in an affinity card. $his is for pro#idin financial re!ards to the roup or association.0. . Citiban" +omen s card, Citiban" ++ cards. Citiban" ++ Iisa card donates a

percenta e of the transaction #alue made throu h the card to the ++ fund for its

en#ironmental conser#ation acti#ities. / subscription to such cards helps ease the conscience

thou h it pro#ides no monetary #alue.

/ partnership bet!een a ban" card issuer and a commercial partner result in a co&branded

card. $his entitles the cardholder to lots of freebies, pri5es, discounts on co&branded products.

Ao ic3 %f a customer is loyal to one brand, he !ill !ant to purchase the other. ;o if you !ere

loyal to a particular brand, it !ould ma"e sense oin for those co&branded cards. e. .

Citiban" and % C, Ban" of %ndia and $aj roup of hotels etc.

9. > at"s t e 1ost card 1ia6i1ity L

Most Card issuers mention in the brochures that lost card liability is Rs 1))). Be careful, that

is actually / $0R it is reported to the Ban". $he liability is actually unlimited before

reportin =in cases li"e this, you !ould actually than" the credit limit because thou h the


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liability is unlimited, the ceilin should lo ically be your credit limit, and the outlets

acceptin your stolen card should actually chec" that you =or the person !ho stole your card>

ha#en t e*ceeded your credit limit>. /#oid ban"s that ma"e you liable for card misuse for a

sin le minute after reportin it.

(. Are t ere any free6ies;

Citiban" i#es a Pond s ift hamper free on subscription to its Citiban" +omen card.

Personal accident insurance for /ir, Road or ther!ise is pac"a ed alon !ith the

subscription. /lso Ba a e co#er, Purchase Protection co#er and credit shield is bundled free

of cost alon !ith the card. %f you feel one these parameters are important, then settle for theone that i#es a hi her co#er.

@.Is immediate cas 2it dra2a1 !ossi61e;

Chec" out if the Ban" has any /$Ms near your house or !or"place. $his surely helps in

times of emer ency. $he cost component for a cash !ithdra!al could be classified as

follo!s3 ;er#ice fee =transaction fee> each time you pull out money, and %nterest rate for the

period for !hich you ha#e used the money & until settlement date. %f you are oin to!ithdra! cash fre uently, better !atch out for this cost.

1). 4o2 1on' is t e free credit !eriod;

$he days of credit one ets depends on the statement date and the date of transaction. n an

a#era e, you could assume you2d et around 4) days of free credit. o!e#er, if you buy just

after the statement date, you could end up ettin upto 7) days of credit. Aoo" for cards that

i#e you the hi hest free credit period:

11. Is a 4e1!1ine a5ai1a61e;

/ 46&hour elpline ser#ice from the Card Company helps the cardholders durin the non&

ban"in hours. Reportin of theft, chec"in of a#ailable credit limit and other en uiries can

be made by the cardholder round&the&cloc". %n the end, li"e e#erythin else in life, the card

you !ant is really up to you & !hat matters the most to you & credit, reach, the freebees,

international reach or a combination of parameters. ?se our card cate ory on the left bar to

simply list out the names of the cards, or choose by ban" name and see the cards they offer.


18/86

r loo" for cards offerin the lo!est interest rate. f the lo!est char es on cash !ithdra!al

=belie#e me, it ets to be a serious consideration as one oes alon >. Go to our shortlist card

section, and search for cards based on any criteria that you !ant. appy huntin , and stay

careful & you may li"e to use our section on ho! to use the card carefully to minimi5e the

chance of its misuse by someone else.


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DEBIT CARDS

Debit card is an /$M card on the mo#e. $oday more than 8) million people ha#e debit cards

that carry the lo os of the t!o major payment card companies. $hat number is e*pected to

ro! dramatically as debit cards become increasin ly popular. Many debit cardholders

confuse debit cards !ith standard /$M cards. Not all debit cards are e ual. Debit cards !ith

the lo o of one of the t!o major payment card companies are /$M cards !ith clout. $hey

can be used to obtain cash from /$M machines, and also to ma"e purchases any!here the

lo os on these cards are accepted && o#er 18 million merchants !orld!ide.

Debit Card i#es you the freedom to access your ;a#in s or Current /ccount at merchant

locations and /$Ms. +hene#er you ma"e payments, the amount !ill be instantly debited to

your account. /ll your purchases and cash !ithdra!als !ill be in the currency of the country

you are in, !hile your account !ill be debited in rupees. ;o you needn2t carry tra#eler s

Che ues or forei n e*chan e the ne*t time you tra#el.

$here aren2t many Debit cards in %ndia as of no!. $he D C %nternational Debit Card comes

at an annual fee of around Rs. 47)H&. $his char e is !ai#ed off on one additional card ta"en

on your account. $here are char es in#ol#ed on cash !ithdra!als and balance ueries.

Normally the cash !ithdra!al char es are around Rs 77H& and a mea er char e of Rs.1)H& for

balance. %f you already ha#e a sa#in s or current account !ith the debit card issuer, you

mi ht just ha#e to file an application form. $he company then couriers the card across to you

in around a !ee" s time. %f you don t ha#e an account, you !ill ha#e to open an account firstand re uest for the debit card to be issued to your residence. $he Debit card does ha#e a daily

limit, !hich could be some!here around Rs. 17,))) at /$Ms, and Rs. 1),))) at merchant

locations. $his a ain is subject to the balance a#ailable in your account.


20/86

SIGNIFICANCE OF THE PROJECT

/merican 0*press Ban" has been facin stiff competition from ne! entrants. $hey are all

#yin for a lar e share in the fast ro!in %ndian card mar"et. $he %ndian card mar"et has

been ro!in at the rate of ')K per annum. /m0* needs to "eep pace !ith, if not score o#er

these companies on ser#ice le#els bein pro#ided to the customers. Research has re#ealed

that consumers today are more discernin than e#er before about !hat they !ant from their

credit cards. +hat they are loo"in for in a card issuer is & real #alue, enuine sa#in s ande*ceptionally ood ser#ice le#els.

/part from attractin potential card users, customer retention is also one of the most

important factor influencin a card issuer s success. %n order to pre#ent its cardmembers to

shift to the ser#ices of other %ssuers, /m0* !ants to ensure that their ser#ice establishment is

better than that of the other players in the %ndian mar"et. $herefore, /m0* !ants to find out

the satisfaction le#els of its customers. btainin the accurate data on the satisfaction le#elsof its cardmembers, !ill ensure /m0* to ma"e appropriate chan es in its ser#ice offerin s if

necessary and in turn !ill help /m0* in increasin the amount of customer loyalty. %n order

to ensure that the e*istin customers stay loyal, /m0* has to ascertain !hether its e*istin

customers are satisfied !ith its current ser#ice offerin s.

/merican 0*press !ants to ascertain !hether its ser#ices are upto the mar" and !ants to

pro#ide a means for deli#erin better #alue to its customers. $his project !ill help /m0* in

understandin the satisfaction le#els of its e*istin customers.


21/86

OBJECTIVES OF THE PROJECT

T e o6%ecti5es of t is !ro%ect are?

a> $o ascertain !hether the e*istin customers =cardmembers> of /merican 0*press are

satisfied !ith the ser#ice offerin as re ards the Cards perations di#ision.

b> $o identify the areas of impro#ement and formulatin recommendations for the ser#ice

offerin s of the Cards perations Di#ision of /merican 0*press Ban".

c> /t the corporate le#el, the objecti#e of this project is to ascertain !hether the ser#ice

offerin s of /merican 0*press Cards perations Di#ision are upto the mar" and to

pro#ide a means for deli#erin better #alue to its customers.

d> /t the academic le#el, the objecti#e of this project is to i#e insi hts to the students on

ho! to ascertain the le#el of satisfaction of a ser#ice or anisation.

Gettin your customers to tell you !hat2s ood about your products or ser#ices, and !here

you need impro#ement, helps you to ensure that your business measures up to their

e*pectations. No matter !hat type of business you2re in, sur#eys are a #aluable tool that help

you collect the information you need in order to understand, e#aluate, and enhance customer

satisfaction.


22/86

A)#".%*+ E4 "#$$ B*+>

" st .,ished 1921$

MISSION STATEMENT

Pro5ide t e 6est as defined 6y t e customer/

At t e 1o2est cost for 5a1ue de1i5ered/

>it t e fastest time to mar3et for ne2 !roducts and ser5ices/

/merican 0*press Company is a di#ersified !orld!ide tra#el, financial and net!or" ser#ices

company founded in 1(7). %t is a !orld leader in char e cards and credit cards, $ra#elers

Che ues, tra#el, financial plannin , business ser#ices, insurance and international ban"in .


23/86

P!$.-.!+ *$ !+ 3120327000 A)!5+- .+ C"!"#$Deposits 161(.'6

Adv nces (@1.@6Net Profit 49.9)

B"*+%$

ot , (+r , !emi@r. n @r. n etro

6 nil Nil nil 6

S-* ot , )fficers *,eric , )thers Women !*&!

(@7 7@1 474 74 N./. N./.

F.+*+%.*' P*"*)#-#"$ 1999@7000Net NPAs& Net

Adv ncesInterest Income & W%

+ndsNon Int% Income

&W% +ndsier I ier II ot ,

@.@1K ).1(K1).)@K 6.'4K 1).@8K 7.16K

)per tin/Profit&W% +nds

(et+rnon Assets

:+siness Per emp,o-ee

Profit Per emp,o-ee

4.9)K 1.)4K 4@).46 lacs '.19 lacs

$ranc es in India Ca1cutta

P Bo* 4'11, 41 emath Basu ;arani = ld Court ouse ;t>, Calcutta 9)) ))1, +est Ben al $el3 @1 ''

46')4'' a*3 @1 '' 46(((@8 $l*3 =@7'> 419796

C ennai

1(9 Mount Rd, Chennai 8)) ))8, $amil Nadu $el3 @1 66 (746'1' a*3 @1 66 (746')8 $l*3 =@7'> )618))8

Mum6ai

9th loor, Ma"er Chambers %I, Nariman Point, Mumbai 6)) )41, Maharashtra $el3 @1 44 4(''4@' a*3 @1

44 4(94@8( $l*3 =@7'> )11('()( Postal /ddress3 P Bo* 7)9, Mumbai 6)) ))1, Maharashtra

Ne2 e1 i

P Bo* 41, amilton se, / Bloc", Connau ht Place, Ne! Delhi 11) ))1 $el3 @1 11 ''498)4 a*3 @1 11

'917'74 $l*3 =@7'> )'18864)


24/86

T4E 4I&TOR: OF AMERICAN E8PRE&&$he istory of /merican 0*press is a fascinatin one, filled !ith interestin and

sometimes uir"y characters !ho throu h a combination of brains, perse#erance

and luc" shaped the company s de#elopment durin the past century and a half.

$heir #ision of !hat /merican 0*press should become has chan ed o#er time,

resultin in a company that has had many faces durin its lon history.

%t all dates bac" to 1(61& to the city of Buffalo, Ne! -or" !hen enry +ellsestablished a ser#ice to carry oods, money, #aluable and financial paper from

the 0ast to the +est Coast of /merica. is first trip too" him and a carpetba &

full of old, sil#er and securities from /lbany to Buffalo. $he trip too" four

days and it brou ht O0*press ser#ice to Buffalo.

%n 1(7), enry +ells !hose firm, +ells and Company had earned a reputation

as an inno#ator in the 0*press trade mer ed !ith its major competitors to form

a ne! entity called /merican 0*press Company. enry +ells !as elected its

President !ith +illiam ar o as its Iice President.

/ fe! years later Qohn But terf ie ld, another founder of /merican 0*press

Company, instituted an additional separate enterprise& $he #erland Mail& !ith

the Pony 0*press& !hich !as to contribute one of the most colorful episodes in

the history of the /merican rontier.

$oday this roup pro#ides ban"in ser#ices outside the ?nited ;tates throu h its

br anc hes and the of fices of su bs idiaries in 47 cou nt ries, and thr ou h mor e than

4))), correspondent ban"in relationships. %mportant acti#ities include e*port&

import and !or"in capital f inance, corporate and project f inance, forei n

e*chan e and operations ser#ice.

Ban"in operations started in %ndia in Bombay in the year 1@44.


25/86

%n the first half of the 4) t h century /merican 0*press continued to ro! rapidly.

%t !as the only company to pro#ide financial ser#ices in some cities durin the

lo! point of the Great Depression.

$hrou hout the 1@7)s, the company !as consistently ro!in in all areas of

bu sine ss interest&$r a#el, $ra#e l Related i nancial ;er#ices and %nternation al

Ban"in . %t !as in 1@7) that /merican 0*press made i ts entry into %ndia s

capital city, Ne! Delhi.

1@7( !as a hallmar" in the history of /merican 0*press. $he /merican 0*press

Credi t Card !as int roduced in ? ; dol la rs and Canadian dol la rs and !on

immediate acceptance =%n 1@8@, the !ord OCredit !as dropped from the name

of the /merican 0*press Card>.

1@8) sa! the emer ence of a ne! mana ement headed by the Company s

se#enth President , o!ard A Clar" . ?nder h is ne! d irec t ion !as p lanned

e*pansion of $ra#el Related ;er#ices and its e*tension into ne! ser#ice areas to

meet the demands of an increasin ly sophisticated and affluent clientele. $he

use of the /merican 0*press $ra#elers Che ue re! phenomenally after 1@8),

lar ely under the impetus of stren thened and inno#ati#e mar"etin .

%t !as in 1@(' that the /merican 0*press $ra#el Related ;er#ices Company,

%nc. came into e*istence as a subsidiary of the /merican 0*press Company.

%D; inancial ;er#ices %nc., a leader in the financial plannin field because a

pa rt of /me rican 0* pr ess in 1@(6. %t of fers ind i#i dua ls and bus ine sses sou nd

financial plans, products and ser#ices to f ulfil those plans.

/mer ican 0*press !as the f ir s t company to ma"e Personal Ban"in and

inancial ;er#ices a#ailable at sea. $his !as done in conjunction !ith Cunard

Aine on board Cunard s fla ship #essel, ueen 0li5abeth %%.

%n May 1@(7, /0%BC !as renamed /merican 0*press Ban" Aimited =/ BA>, to

enable the Company more directly capitali5e on the /merican 0*press name.


26/86

%n 1@(8, for the f i rs t t ime, the company passed the milestone of one bi l l ion

dollars in net income. %n 1@(8, it also relocated to its ne! ead uarters buildin

in Ne! -or" City s +orld inancial Center.

%n Qune 1@(9, the $R; company introduced an e*citin ne! product, the ptima

Card a#ai lable to /merican 0*press Card members in the ?ni ted ; tates . %n

addition to enjoyin the same unparalleled benefits that the /merican 0*press

Card pro#ides, the pt ima Card offers Card members the added faci l ity of

e*tended payments on purchases at an e*tremely attracti#e rate of interest.

%n No#ember 1@(9, the /merican 0*press $R; in %ndia introduced the ?;

Dol la r b il led Corpora te Card to t he %nd ian Corpora te s. $he Card ! as a

re#olution in the then nascent Card mar"et as /merican 0*press !as the only

Card issued in %ndia that could be used o#erseas. $he Card usa e had certain

restrictions as the Card issuance and usa e !as strictly under the Reser#e Ban"

of %ndia uidelines.

%n May 1@@', the %ndian Rupee Personal Card !as introduced. $he Card !as

pr o# ide d to a set of e*c lusi#e cus tome rs and e#en the /d #e rtisin camp ai n that

ran said& O uite fran"ly the /merican 0*press Card is not for e#eryone . $he

Company continued ma"in ne! forays into the re!ards and benefits that the

Card members could enjoy. $his Card and all subse uent Card products billed in

%ndian rupees !ere #alid for use in %ndia. Nepal and Bhutan, thus ma"in the

/merican 0*press Cards the only products to be #alid in Bhutan.

%n /u ust 1@@8, /merican 0*press Corporate Card billed in %ndian Rupees !aslaunched for Corporates in %ndia. $his is a Char e Card Product and does not

ha#e a competi t ion t i ll date in the mar"et. $his product pro#ides e*clusi#e

$ra#el and 0ntertainment benefits to the Corporate $ra#eler.

%n /pril 1@@(, the %ndian Rupee Gold Card !as launched. %n No#ember 1@@(,

the %ndian Rupee OGlobal Re#ol#in Credit Card the GRCC& !as launched.

$he product proposition !as termed the best Mar"etin Proposition for the year.


27/86

%n ctober 1@@@, Global Ialidity !as introduced on all %ndian Rupee billed

Card products.

%n ctober 4))), the /merican 0*press Gold Credit card !as launched. $his

pr od uc t Oredefines Gol d ;t and ards in Credi t Cards in %nd ia .

By contrast, the rou h and tumble frei ht for!ardin businesses that launched

the /merican 0*press story are lon one. ther acti#ities that !ere once the

mainstays of the Company are no lon er its primary lines of business. Chan in

times and chan in customer needs ha#e uided /merican 0*press to rein#ent

itself continually, and that capacity for rein#ention ma"es /merican 0*press

uni ue. %t has demonstrated a remar"able abi l i ty to sur#i#e and e#en thri#e

despi te s i ni fi cant s etbac"s and chan in e*terna l forces& mer e rs and

ta"eo#ers o#ernment inter#entions industry turmoil and consolidat ions

scandals and e#en !ars.

$hrou h this lon journey there is , ho!e#er, one characteris t ic of /merican

0*press that has remained constant its commitment to pro#idin e*traordinary

ser#ice to its customers, no matter !ho or !here those customers may be. %t

!as just as true in 1@16, !hen /merican 0*press !as helpin stranded tourists

in 0urope at the outbrea" of +orld +ar 1, as it !as in 1@@(, !hen employees

!ere assistin customers durin the national c risis in %ndonesia.

$he /merican 0*press Card has no! been in e*istence for o#er 6) year. %n

% ndi a, t he / me ri ca n 0* pr es s C ar d pr es en ce h as be en s inc e 1@ (9 . $h e

r ani5at ional s tructure of the Company #is&Sis Card business has al!ays be en cha n in !ith respe ct to the cha n es in the Com pa ny s ;trate ic

bjecti#es o#er the years.


28/86

T4E AMERICAN E8PRE&& CAR $9&INE&&

T e 9ni@ue O!eratin' Pro!osition

7 core elements distin uish ho! the /merican 0*press Card !or"s to ser#e Card members.

+/ < ours Customer &er5ice

+e offer 46 hrs Customer ;er#ice in 7 cities =Delhi, Mumbai, Chennai, Calcutta

and Ban alore>. +e employ superior technolo y =Call Re&routers> to ser#ice our

Customers in these cities from Delhi.

. $he

char es on the Card are appro#ed on the basis of the financials pro#ided by the

CM initially and the subse uent spendin and the payment patterns.

/ T e C ar'e Card difference

$he /me* Card !orld!ide is predominantly a Char e Card. $he Credit Card

= ptimaHGRCC> ha#e been launched !ell after ') years of bein in e*istence.

ur mainline re#enue is still the Char e Card.

B/ G1o6a1 Tra5e1 &er5ice Office (T&O) Net2or3


29/86

/merican 0*press is the !orld s lar est $ra#el ;er#ice Net!or". +e ha#e o#er

19)) offices in more than 1') countries.

T4E AMERICAN E8PRE&& CAR

o! to et oneL

$o become an /merican 0*press Card member, the prospect must meet the follo!in

criteria

$he prospect must send in an /pplication

Must be abo#e 1( years of a e

Must meet the /merican 0*press Card /ppro#al Criteria

Iarious /me* Cards ha#e different /ppro#al Criteria

$he i ssuance and usa e o f t he Card i s o#erned by the local mar"e t

o#ernin bodies, re ulations and uidelines.

+hen appro#ed, is pro#ided !ith a Card and a Card membership number.

Cards are #alid for ' years

$he Card member can use the Card a t a ll /meri can 0*press ; er#i ce

0stablishments.

4O> O AME8 GET& IT& CAR MEM$ER&;

/m0* sources its Card members throu h the follo!in channels

Mar"etin , ;ales and /d#ertisin

0*ternal ;ales / encies

Direct Mailers

Call&ins

+al"&ins


30/86

$a"e ones

Representati#e offices Rep Get Member

Member Get Member

;taff Get Member

Con#ersions

Cross ;ellin pportunities

AMERICAN E8PRE&& CAR

+orld&!ide pri#ile es

=Many of these pri#ile es may or may not be a#ailable on the %ndian Rupee Card

Products. $here may be other pri#ile es e*clusi#ely for the %ndia mar"et>.

/merican 0*press Cards !orld!ide pro#ide a host of pri#i le es to i ts Card

members. Many of these pri#ile es ha#e o#er the time, ha#e ro!n to be brand

names in themsel#es&li"e the Money ram. $hey not only pro#ide immense #alue

to our 66 million Card members, they ha#e also in the past acted as life sa#ers

for many /merican 0*press Card members& l i"e Global /ssis t that pro#ides

Doctors&on&call to the card members.

$he #arious pri#ile es that the /me* Card pro#ides to its Card members are3

+/ Assumed 4ote1 Reser5ations

+hen a CM boo"s h is ot el room ! ith t he /me* Card a s t he Payment

%nstrument, he is assured of the follo!in .

$he room reser#ation is uaranteed and is held till 14))hs the ne*t day.

%f upon the arri#al of the CM, the hotel does not ha#e a room for him, the

hotel pro#ides him !ith similar accommodation in a hotel !hich is !ithin the


31/86

same district of the city, pays for his transportation to the ne! hotel and pays

for one $elephone Call any!here in the !orld.

$he /ssured otel Reser#ations is a pri#ile e pro#ided by select participatin

hotels under a specific /merican 0*press Mar"etin Pro ram called the ; RP&

;elect otels Rate Pro ram. /ll participatin hotels are bound by the contract to

pr o# ide the se ba sic facilities to all /me* Card me mb ers.


32/86

the CM. $he Ban" sends the payments to /me*. $he CM is thus, sa#ed the

bo the r to fol lo! up on hi s statement s and paym ents.

B/ Emer'ency Card Re!1acement (ECR)

%rrespect i#e of !here they lose the ir Card, /me* promises the los t Card

replacement !ithin 4 business days to the CMs. $his is a major #alue addition

to the pri#ile es that !e offer as !e do not char e for a replacement Card and

also not for the cour ier char es i f !e a re to replace the Card a t a remote

location.

/ Emer'ency C e@ue Cas in' (ECC)

$ra#ellin CMs can a#ail of 0mer ency Che ue Cashin on the card. $hey need

to produce the Card and also !rite a Personal Che ue in order to !ithdra! cash.

$he amount on the che ue is the face #alue of the Cash that they !ithdra! plus

a t ra ns ac ti on f ee s a mou nt . $he a bs en ce of a P er so na l C he ue c an be

compensated by a Counter Che ue that the CM Des" !ould ha#e !ith them.

/ fe! points that ha#e to be remembered durin the 0CC transaction are3

$he 0CC is a#ailable only at the Card members Des" at the /me* $; s.

$he amount that a CM can !ithdra! on his Card is determined and re ulated

by hisHher card issuin mar"et.

$he transaction fees is usually 4.7K of the transaction amount but may #ary

from mar"et to mar"et.

$he personal che ue can be of any ban" in the !orld. %t is presented to the

Cm s Ban" immediately on the sameH ne*t !or" day. /l l bounced personal

Che ues on the 0CC fac il i ty a re i#en prominence for col lect ions and

recei#ables.


33/86

/n authori5ation has to be ta"en from the nearest authori5ations center for

e#ery 0CC transaction.

D/ E !ress Cas

0*press cash is another mode of a#ailin cash on the card. ere the CM does

not need to carry any personal che ue but can !ithdra! the needed cash from an

/$M.

/me* has more than () , ))) /$Ms !orld!ide and !e are in the process of

launchin more /$Ms in %ndia in the near future.

Both currency and tra#elers che ue can be !ithdra!n from the /$Ms. Currency

could be the local currency or in major internat ional currencies. $ra#elers

che ues are in 14 internat ional currencies and at t ract a 1K transact ion fees.

#erall, the /$M transaction attracts 4.7K transaction fees.

-/ E !ress c ec3=in# c ec3=out faci1ity

By the # ir tue of bein an /me* CM, a ll par t ic ipat in hotels in the ; RP

Pro ram pro#ide all /me* CMs !ith an e*press chec" in and chec"out facility.

$he CM just needs to present hisHher /me* Card at the reception upon arri#al

and inform them o#er the phone at the $ime of Departure and the otel ta"es

care of the rest. $his s a#es the CM a lot of #aluable ti me.

*/ E tended Payment P1an (EPP)

%n the ?; and certain other mar"ets , CMs are pro#ided ! i th a facil i ty to pay

their $ra#el and / i rl ine char es at re ular f i*ed inter#als of t ime =!ith an

amount of interest>. $his is essentially under the assumption that the $ra#el and

/ir l ine char es are of non& fre uent cate ory and the 0PP aims to pro#ide a

fle*ibility to repay these char es at inter#als. o!e#er, the rest of the char es

on the CM s statement need to be paid upon receipt of the statement.

+,/ G1o6a1 Assist


34/86

Global / ss is t i s an %nterna tional a ency ! ith i ts off ice in the ? ;, !hich

pr o# ide s Ae a l and Medi cal assistanc e up on re ue st. +he n CM s re ui re any

such assistance, they need to call /me* at the local mar"et 46 hrs number. $he

Global /ssist number is then pro#ided to the CMs !ho et in touch !ith G/.

G/ then leads them to the nearest Doctor or Aa!yer in the mar"et , as they

!ould ha#e databases of such utilities.

++/ Insurance &er5ices

/me* pro#ides a #ariety of %nsurance ;er#ices on all its products. By the #irtue

of bein a CM, an indi#idual is insured a ainst Personal /ccident. +hen /me*

CMs buy / i rl ine t ic"ets on the card, they et addit ional Personal /ccident

%nsurance. $ra#elers che ue purchases ets more insurance. +hen CMs tra#el,

!e also assist them !ith Medical %nsurance ;er#ices.

%n all such cases of /ccident, the CMs deal directly !ith the %nsurance / encies

and not !ith /me*.

+


35/86

/ l l /me* Basic CMs =the primary Card /ccount olders> can pro#ide cards to

their spouses, friends and relati#e sand near and dear ones. $he policy on the

scope of the supplementary card membership #aries from mar"et to mar"et. /

ba sic CM can i #e as many as @@ supp leme ntary cards on hisH her accou nt .

o!e#er, the basic CM is responsible for all payments on the card account.

+B/ Transfer Out (Con5ersions)

CMs mo#in from one mar"et to the other /me* mar"et can easily con#ert the

currency of the ir card . $his faci li ta tes a smooth t ransfer of DebitH Credi t

ba lanc es if any on the pr e#i ous card accou nt !hi ch are then con #e rted and

bi lled in the local currenc y in !h ich the CM has no ! ac u ired the card.

o!e#er, all such transfers of card currencies !ould be dependent on the local

mar"et card issuance policies.

+ / >or1d 2ide tra5e1 assistance

%rrespect i#e of !hich mar"et issues the card, al l /me* CMs !orld!ide are

ent it led to +or ld c la ss t ra#e l s er#i ce f ac il it ie s a t o#e r 19) ) o !ned and

representati#e offices of /merican 0*press $R; in more than 14) countries in

the !orld.

+D/ Mem6ers i! Re2ards (MR)

ne o f t he mos t r e! ardin benef it s o f t he /me* Card membership, t he

membership re!ards is a pro ram of /me* re!ardin the CMs for spendin onthe card. 0ach ?; dollar =con#erted into the local currency> spent on the card

and paid bac", earns the CM, one MR point. $hese points can then be redeemed

a ainst a host of retail and leisure purchases from a list of such options that the

card mar"etin team "eep)s modifyin !ith time.

+-/ Limited 1ia6i1ity

%n an e#ent of the loss of the card, /me* pro#ides the CM the benefit of limitedhisH her liability on the card. Before the report of the loss of the card, the CM is


36/86

liable to an amount of %NR 1))) =or other amounts, !hich are product specific>.

%n case the card is misread after the report of loss of the card, the CM is not

liable to pay anythin . $he limits differ on cards issued in #arious mar"ets.

AMERICAN E8PRE&& CAR PRO 9CT& IN IN IA

$he #arious card products that /merican 0*press issues in %ndia are3 %NR personal card %NR old card %NR corporate card Corporate purchasin card

%NR GRCC =Green and Gold> ?; dollar corporate card Co&branded cards =M$NA> /ffinity cards.

C4ARGE CARAmerican Express

CardAmerican Express

GreenGlobal Validity Yes YesLaunch Date 1988 1993

F##$ IHRJoining Basic Rs. 1500 Rs.1 000!nnual Basic Rs. 3100 Rs. 100"u##le$enta%y !nnual Rs.1500 Rs.950&R'()* (%ee (%ee&R()* Rs.+00 Rs.+00!nnual (ee ,ai-e% 'o 'o&a i$u$ 'o. o/ su##s 'o li$it $a 99 'o li$it $a 99&in. indi-idual inco$eRe2d.

Rs. 00 000 Rs. 100 000

Delin2uency cha%ges 3.54 o% Rs.100hiche-e% is highe%

3.54 o% Rs. 100hiche-e% is highe%

Di%ect debit6standinginstant

Yes Yes

Lost ca%d liability Be/o%e %e#o%ting lossRs.1000 a/te% %e#o%tingloss7nil

Be/o%e %e#o%ting lossRs.1000 a/te% %e#o%tingloss7nil

D%o#bo locations inndia

8 ac%oss 8 cities 8 ac%oss 8 cities

+ ou% custo$e%se%-ice

Yes Yes

:o$$ission /%ee t%a-elche2ue

Yes Yes


37/86

Du#licate "*! Yes /%ee o/ cha%ge

Yes /%ee o/ cha%geY;"*: Yes Yes&onthly :& &ag'e slette%

Yes Yes

&ail o#tion hate% Yes Yes)%a-el se%-ices Yes Yes'o. o/ t%a-el o//ices Yes th%ough 8 o ned

)"*s and Re# o//ices in+ cities

Yes th%ough 8 o ned)"*s and Re# o//ices in

+ cities!)& net o%< access Yes YesInsurance!ccidentaldeath6disability

!i%7+ && 'on7ai%7300< !i%7+ && 'on7ai%7300

=u%chase #%otection ?#to Rs.150 > /o% 90days

?#to Rs.150 > /o% 90days

Baggage loss insu%ance ?#to Rs. 5000 ?#to Rs. 5000:%edit li/e insu%ance Yes u#to Rs.5000 Yes u#to Rs.5000;$e%gency $edical @Legal !sst.

Yes Yes

Re#lace$ent6Lost ca%d/acility

Yes +8 ou%s Yes +8 ou%s

Gua%anteed otel%ese%-ations

Yes Yes

; #%ess chec< in 6out Yes Yesotel6t%a-el discounts Yes Yes

!i%#o%t6Business lounges Yes Yes!//inity o% Aoint ca%d 'o 'oBed che2ues Rs. 150 Rs. 150Re a%ds #%og%a$$e Yes Yes(ee %e/und on #%oductchange

*n a #%o%ate basis *n a #%o%ate basis


38/86

CRE IT PRO 9CT& COMPARI&ONProduct Gold

GRCCCitibank

GoldSCB Gold HSBC Gold Green GRCC Citibank

classicHSBC

classic

V :;"6R; ? R;&;') "

:a%ds Gold Gold Gold G%een :lassic :lassic

': Date 00 1993 199 1998 1991 199

!nnual B!" : 000 000 1500 C50 500

!nnual"u##le$enta%y

1000 1000 500 350 00

Product Gold GRCC Citibank Gold SCB Gold HSBCGold

Green GRCC Citibankclassic

HSBCclassic

& i ni $u $ no . o/ su # #s ' o l i$ it a -a il ab le tos#ouse and

de#endent /a$i ly$e$be%s

&a i$u$ o/ &a . o / 'o l i$i t a-ai lable tos#ouse and

de#endent /a$i ly$e$be%s

&a o/ &a o /

& i ni $u $ i nd i- id ua li n co $ e % e 2 ui % ed # e %annu$

"ala%ied Rs.150 000"el/ e$#loyed Rs.100 000

"ala%ied Rs.15E 000"el/ e$#loyed

Rs. 15E 000

R s 1 C5 0 0 " al a% ie dLa%ge 6 &': F30 7C >3073579E>*the%s 9E>H"el/ e$#loyed =%o/ F30 C >

"ala%ied C 000"el/

e$#loyed9E 000

Rs.C 000


39/86

BiI "-es 9E>*the%s 9E>

&onthly inte%est %ate ) ie%17)ie% 7 90

nt%o B)7 1.C9

9 59 5

5 09 0

)ie%1 C9)ie% 90

nt%o B).C9

9 59 5

C 5C 5

nte%est %a te #ay$en t* D

1 days 0 days 0 days 1 days 0 days 0 days

!-e%ages Rs. 100 o% 3.54hiche-e% is $o%e

.955 o% Rs. 100 in$onth one .95 4

o% Rs. 150 in

$onth t o

Rs. 100 o% 3 .54hich e-e% is $o%e

Rs. 100

&onthly ne sle tte% Yes Yes Yes Yes 'o 'o)%a-el se%-ice Yes Yes7th%u

alliance itht%a-el housein 10 cities

Ye s

'o. o / t%a-e lo//ices

Yes7th%uo ned 8

)"* s @ Re#o//ices in +

citiesK

)%a-el ouselocations 10

cities

"ita t%a-els in cities and )ho$as

coo< in C cities

Yes7th%u o ned8 )"* s @ Re#

o//ices in + cities

)%a-el ouselocations in 10

cities

"ita )%a-elocations i

citie

!d-ances 'R 04 o/ L*: Rs . 10 000 inyea% one andE04 o/ L*:

a/te% yea% one

?#to E04 o/ L*: 104 o/ L*:

'et o%< !ccess 31 in C cities/o%

&aste%:a%d itis 150 ac%oss

1 cities

35in C ci ti%es 31 in C ci ties 35 in Ccities

:%edi t /ac il ity ?#to .5ti$es $onthly

sala%y

?#to .5 ti$es$onthly sala%y

?#to .5 ti$es$onthly sala%y

?#to .5ti$es

$onthlysala%y


40/86

! c c id e nt a l d e a th 6liability

!i% &&

'on !i% 300>

=e%$anentDisable$ent

100>

!i% &&

'on !i% 00>


' L

!i% 1.0 &&

'on !i% 300>

=e%$anentDisable$ent ' L

!i% 1.0 &&

'on !i% 00>

=e%$anentDisable$ent ' L

!i% 0.5 &&

'on !i% 100>


' L

!i% 0.E&&

'on !i% 00>

=u%chase#%otection 'R ?#to Rs. (o%90 days Rs. +0 000/o% 90 days ?#to Rs. 50 00/o% 180 days ?#to Rs. 50 000/o% 90 days ?#to Rs.15 000 /o% 90days

";RV :;"6R; ? R;&;')"

:%edi t l i /e insu%ance'R ,ai-e% o/ o6s

u#on :& de$ise

'o =%e$iu$cha%ged Rs.50 /o% u#toRs. 50 000

(%ee u#to Rs.+0000

'o =%e$iu$cha%ged7Rs. 50

/o% u#to Rs.50 000

(%eeu#to Rs.

0000

;$e%gency legal and&edical assistance

'! 'o )h%oughV;"=6&aste%

!ssist

'! 'o 'o

Re#lace$ent6Lost:a%d (acility

+8 hou%sbiI

days

+87C hou%s +87C hou%s Rs.10 0

+8 hou%s biIdays

+87C hou%s

G ua %a nt ee d ot elRese%-ations

Yes, R=6"

R=

Yes th%oughB):

do$estic

Yes Yes, R=6" R=

Yes th%ough B):do$estic

Ye s

; #%ess chec< in6out Yes, R=6"

R=

Yes Yes Yes, R=6" R=

Yes 'o

otel6)%a-el Disc. Yes, R=6"

Yes th%oughB):

Yes Yes th%ough B):


41/86

R= do$estic , R*=6" R= do$estic

!i%#o%tlounges6businesslounges

C in ndia C in ndia 1 C in ndia ' ! ' !

";RV :;"6R; ? R;&;')"

! // in it y o % A oi ntca%ds

'! '! '! ndian *il &aste%:a%d =hili#s

Visa6&aste%ca%dndian

!i%/o%ce6!%$y,o$en s :a%d

Visa

"ho##e% s"to#

&aste%ca%dndian

!i%/o%ce6!%$y ,o$en s

:a%d Visa

Bad che2ues 'R Rs. 15067 Rs. 10067 Rs.15067 Rs.10067

Re a%ds =%og%a$$e '! '()*7(%ee()* (%ee

!-ailable only/o% /ee

%ede$#tion

'()*(%ee ()*

'()* (%ee

()* (%ee

!-ailable only/o% (%ee

%ede$#tion

&in.%e#ay$ent!& )

54 o% Rs.10067

hiche-e% is$o%e

54 o% Rs. 10067hiche-e% is

$o%e

54 o% Rs.10067

hiche-e% is$o%e


$o%e


$o%e

54 o% Rs.10067

hiche-e%is $o%e

: a%d l ia bi li ty B e/ o% e %e #o %t

o/ loss 1000!/te% %e#o%ting

loss ' i l

Be/o%e %e#o%t o/

loss ?nli$ited!/te% %e#o%ting

loss 1000

Be/o%e %e#o%t

loss?nli$ited

!/te%%e#o%tingloss ' i l

Be/o%e %e#o%t o/


loss 1000

Be/o%e %e#o%t o/


loss 1000

Be/o%e

%e#o%t o/loss

?nli$ited


42/86


43/86

/merican 0*press Credit Card not only offers reat #alue, but also pro#ides a !ide ran e of

pri#ile es, ser#ices and re!ards.

/t 1.67 percent for the first si* months and 1.@@ percent thereafter, the ne! card s interest rate

!as si nificantly lo!er than the 4.@7 percent char ed by most other credit card issuers. /nd the

balance transfer feature !as the first of its "ind in %ndia. ther card benefits included access to

the a!ard&!innin Membership Rewards pro ram, free tra#el insurance and related tra#el

ser#ice benefits, Purchase Protection, limited loss liability, cash ad#ances at /$Ms, card

acceptance at as stations and, as al!ays, 46&hour customer ser#ice.

%t s %ndian operations ha#e sta ed a turnaround durin the year ended March '1, 4))), postin a

net profit of Rs 49.9 crore, a three&fold rise o#er the pre#ious year s net profit of Rs (.4 crore.

$he ban" s operatin profit durin the year stood at Rs 96.9 crore, a 47 per cent increase o#er the

pre#ious year s correspondin fi ure of Rs [email protected] crore. /me* s total income durin the year

ho!e#er dropped four per cent to Rs 667.1 crore from Rs 681 crore in 1@@(&@@, lar ely on

account of a 16 per cent drop in interest income to Rs ')4.@ crore =Rs '67.' crore>. Non&interest

income durin this period rose 4' per cent to Rs 164.4 crore from Rs 117.( crore the pre#ious

year. %nterest e*penses durin the year fell by ') per cent to Rs [email protected] crore from Rs 476.6 crorethe pre#ious year. $he sharp fall in the ban" s interest e*penses !as mainly on account of the

drop in its deposit base durin the year. peratin e*penses durin the year !ere hi her by 1(

per cent at Rs 196 crore =Rs 169.1 crore> !hich included Rs 11.6 crore relatin to the ban" s

#oluntary retirement and se#erance scheme announced in 1@@@.

Durin the year ended March '1, 4))), /me* total deposits fell 44 per cent to Rs 1,61(.' crore

from Rs 1,9''.4 crore the pre#ious year. /d#ances also fell ei ht per cent to Rs (,@[email protected] crore

from Rs @,816.7 crore in 1@@(&@@. /merican 0*press Ban" s net non&performin assets durin

the year increased to 6.'4 per cent from 4.'4 per cent the pre#ious year.

%t is !idely percei#ed that Citiban" is the most established player in the credit card business in

the country so !hen a tra#el&related ser#ices company li"e /merican 0*press, !hich is only

6'


44/86

into char e cards in %ndia till date, claims it is the lar est card issuer in %ndia today, it merits a

second loo". /m0* bases its claim on the fact that cardmember spendin is a more realistic

measure of the #olume of business than the number of cards && plastics && issued. %n other !ords,

plastics cost money !hereas increased spendin by cardmembers ets you money. /nd that2s

also the basis of /m0*2s claim of bein the !orld2s lar est card issuer !ith billin s of o#er ?;D

4)( billion.

;ince /m0* introduced the rupee&billed Green Card in 1@@' and the rupee& billed corporate card

in 1@@8, its business in terms of billin s has ro!n by 97 per cent a ainst an industry a#era e of

o#er 6) per cent. +hat the company doesn2t say so e*plicitly is that a> since /m0* cards are

char e cards positioned as a lifestyle product and ha#e a membership profile of fre uent tra#elers

and hi h spenders on entertainment, the return from each card !ould be that much hi her and b>

since other cards a#ailable in the mar"et are lar ely credit cards !ith a re#ol#in credit facility

tar eted more at the middle class user, the returns !ould accrue on a lon er term. urther, the

fi*ed income from a card in terms of annual subscription fee is more than double for an /m0*

personal card compared to that of a normal credit card.

%ts offerin s already positioned as lifestyle products, /m0* has just introduced the Gold Card,clearly for the hi h&income spenders. $here are other Gold cards in the mar"et. $hou h /m0*

pioneered the Gold Card concept lobally, most other leadin players in the card business in

%ndia already ha#e their old cards. But the difference is that brand /m0* in %ndia already has a

hi h&end premium ima e on account of its e*clusi#e card operations instead of routin them

throu h Iisa or MasterCard, li"e other card issuers do. ;o penetration for a product that

consolidates its premium ima e could be easier. Ai"e other cards from /m0*, the Gold Card is

a ain a char e card, !ith no pre&set spendin limit and !ith !orld class ser#ices.

ne /m0* card that could possibly shed the premium ima e is the corporate card, !hich a client

or company issues to its employees !ho tra#el e*tensi#ely on business. $he employees & from a

sales e*ecuti#e to a senior mana er & ha#e to necessarily use the card because the company2s

tra#el and entertainment e*penses are monitored throu h the spendin on the card. ;ince its

66


45/86

introduction in 1@@8, o#er 8)) small and lar e business houses in %ndia ha#e one in for the

/m0* Corporate Card.

$appin such potential li"e /m 0* does, means offerin competiti#e, if not the best ser#ices.

$he mar"etin efforts of the company are t!o&pron ed ? First is to ac@uire t e ri' t customer

and t e second is to ensure customer 1oya1ty/ /nd this has to be practiced in a scenario !here

the mar"et is ettin increasin ly se mented on price, usa e purpose and the con#enience

platforms.

67


46/86


47/86

R$I'. 68) 1@89

=).1> =).8>6. Money at call 7916) 6(766

=19.9> =16.(>7. Balances !ith 86'1 167@=4.)> =).6>

/ In5estments *- . +.,

8./. %n#estments in %ndia @(6'6 1')444=i> Go#ernment securities 89477 94847=ii> ther appro#ed securities & &=iii> ;hares 41' 41'=i#> Debentures and bonds 4@)1' 6)179=#> ;ubsidiaries and joint #entures & &=#i> thers 1@76 19449

8.B. %n#estments outside %ndia & &=i> Go#ernment securities & &=ii> ;ubsidiaries and joint #entures & &=iii> thers & &

D/ Ad5ances +,., + * + B='4.)> [email protected]>

9.1. Bills purchased and discounted (4(7 161)89.4. Cash credits, o#erdrafts < loans 94418 891769.'. $erm loans 4476) 16((7

Priority sector


48/86

-ear 1@@( 1@@@I/ .< , . B %nterestHdiscount on ad#ancesHbills 16@'' 1'8'8

6(


49/86

b> %ncome on in#estments 1''79 1744)c> %nterest on balances !ith '771 6')@

RB% and other inter&ban" fundsd> thers (4) 1'8'

II/ Ot er + Commission, e*chan e and bro"era e 889' 9'97

b> Net profit on sale of in#estments 4))1 9(8c> Net profit on re#aluation of in#estments & &d> Net profit on sale of land, =97> =94>

buildin < other assetse> Net profit on e*chan e transaction '8'@ '68)f> Miscellaneous income '6( 4@Tota1(I II)

B< +,BE !enditure HIII/ Interest thers 4@( '68@

I0/ O!eratin' ++* Payments to and pro#isions for

employees6)'' 7878

b> Rent, ta*es and li htin 1)@6 146'c> Printin and stationery 481 '9(d> /d#ertisement and publicity 988 117)e> Depreciation on ban"2s property ('9 @@7f> Directors2 fees, allo!ances and e*penses 4 1

> /uditors2 fees and e*penses 41 44h> Aa! char es 76 1@i> Posta e, tele rams, telephones, etc. 1746 19@7

j> Repairs and maintenance 668 778"> %nsurance 11@ 16)l> ther e*penditure 4989 4(6'

0/ Pro5isions B, *Tota1 ..*- ,


50/86

RE&EARC4 E&IGN

/ ood desi n is often characteri5ed by objecti#es li"e fle*ible, appropriate, efficient,

economical and so on. Generally the desi n that minimi5es biases and ma*imi5es reliability of

the data collected < analysed is concerned a ood desi n. $he desi n that i#es the smallest

e*perimental error is supposed to be the best desi n in many in#esti ations.

$his research intends to hi hli ht #arious aspects related to ser#ice offerin s of /merican

0*press Cards perations Di#ision. $he factors li"e customer perception, their attitude to!ards

ser#ice offerin s of /m0* and their card preferences ha#e been analysed to jud e the

satisfaction le#els of /merican 0*press cardmembers.

ATA COLLECTION MET4O ?

Data collection for this research !as done primarily throu h fillin up of uestionnaires. /

sample of 1)) /merican 0*press customers !ere chosen for this research. $he data for this study

!as collected in a manner that is ualified for the follo!in eneral ualities of data3

Ialidity3 %t measures !hat it is supposed to measure.Reliability3 Repeatin the same methods produced the same results.

Pace3 Data !as collected uic"ly enou h and at an affordable cost.

%n this research, the major emphasis !as on unra#elin the cardmembers perception about the

ser#ices associated !ith /m0*, in order to "no! their le#el of satisfaction. ;pecial emphasis !as

laid on collectin e*tremely rele#ant specific data, in order to meet the objecti#es effecti#ely.

$he data collection needs that can be classified more or less under the follo!in cate ories3

Facts? $hese include measurement of anythin that actually e*ists or has e*isted. $he types

of facts co#ered for this study !ere beha#ioral that co#ered the data related to the /m0*

cardmembers perception about the ser#ices and other benefits associated !ith /m0*.

7)


51/86

O!inion? %t co#ered the most important data that !as critical in understandin the beha#ior

of /m0* cardmembers to!ards the ser#ice offerin s of /m0* and the Cardmembers

e*pectations from /m0*.

&ECON AR: ATA

$he research re uired a lot of information about the Credit Card mar"et, status of Credit Card

mechanisms in %ndia, trends in the mar"et and about the competition. $he sources of obtainin

this secondary data !ere the %nternet and the /m0* manual

PRIMAR: ATA

Primary data for this research !as collected by !ay of the uestionnaire method. erein,

structured uestionnaires !ere distributed to /m0* cardmembers.

$he sample for this research consisted of +,, e istin' customers of /m0* that included

0*ecuti#es and Professionals.

$he samplin techni ue used !as the Non=Pro6a6i1ity samplin . $his is so because the data

about the 1)) e*istin customers of /m0* !as obtained from the company s

database.

$he primary data that !as collected, consisted of the customer perception re ardin /m0* cards

and their le#els of satisfaction.

LIMITATION& OF T4E PRO ECT

$here are t!o basic limitations of this project. $hey are3

1. $his research is restricted only to the National Capital Re ion.

4. %n this research, emphasis is on theoretical interpretations. nly a eneric analysis of data has

been done. No uantitati#e techni ues ha#e been used.

71


52/86

RESULTS OF THE SURVEY

74


53/86

J9E&TION +? >4IC4 AMERICAN E8PRE&& CAR O :O9 O>N;

n bein as"ed !hich /merican 0*press card the respondents o!ned, the reply !as as follo!s3

IN( person , c rd 16 respondents

IN( /o,d c rd 24

IN( corpor te c rd 10

*orpor te p+rch sin/ c rd 05

IN( >(** ">reen B >o,d$ 15

@! Do,, r *orpor te c rd 10

Affinit- c rds 16

*o .r nded c rds " N;$ 04

7'


54/86

J9E&TION


55/86

!:I 43

J9E&TION ? O0ERALL# 4O> &ATI&FIE ARE :O9 >IT4 :O9R

AMERICAN E8PRE&& CAR ;

er- s tisfied 22 respondents

!ome'h t s tisfied 53

Ne+tr , 17

!ome'h t diss tisfied 08

er- diss tisfied 00

J9E&TION B? O0ERALL# 4O> &ATI&FIE ARE :O9 >IT4

AMERICAN E8PRE&&" C9&TOMER &ER0ICE;

er- s tisfied 33 respondents


Ne+tr , 08

!ome'h t diss tisfied )9

77


56/86

er- diss tisfied 00

J9E&TION ? 4O> LIKEL: >O9L :O9 $E TO RECOMMENAMERICAN E8PRE&& CAR & TO OT4ER&;

er- ,i e,- 28 respondents

!ome'h t ,i e,- 57

Not s+re 03

!ome'h t +n,i e,- 12

er- +n,i e,- 00

J9E&TION D? TO >4AT E8TENT OE& AMERICAN E8PRE&&

C9&TOMER &ER0ICE E8CEE :O9R E8PECTATION&;

er- /re t e tent 00 ( !P)ND N !

>re t e tent 37

!ome e tent 43

;itt,e e tent 20

78


57/86

er- ,itt,e e tent 00

J9E&TION -? >4IC4 OF T4E FOLLO>ING &TATEMENT

ACCOR ING TO :O9 MO&T REPRE&ENTATI0E OF AMERICAN

E8PRE&&/

A tot , of 145 st tements 'ere se,ected .- the 100 respondents

here e,pf+, nd riend,-% 46 R0;P ND0N$;

here po,ite cheerf+, nd re no',ed/e .,e oper tors '8

In t+ne 'ith the needs of its c,ients 4(

Prompt in de ,in/ 'ith c+stomer comp, ints 4(

@n'i,,in/ to /o the e tr mi,e for its c+stomers 1@

Poor c+stomer phone s+pport ))

=o+ re often p+t on ho,d for ,on/ time 10

79


58/86

J9E&TION *? 4O> &ATI&FIE ARE :O9 >IT4 T4E EFFICIENC:

OF CALL 4AN LING >4EN PLACING CALL& TO AMERICAN

E8PRE&&;

er- s tisfied 29 ( !P)ND N !


Ne+tr , 27

!ome'h t diss tisfied 03

er- diss tisfied 00

J9E&TION +,? AMERICAN E8PRE&& 9N ER&TAN & M: &ER0ICE

NEE &/

!tron/,- /ree 00 ( !P)ND N !

A/ree 77

Ne+tr ,&Not s+re 18

Dis /ree 05

7(


59/86

!tron/,- dis /ree% 00

J9E&TION ++? >4AT ARE T4E A E $ENEFIT& :O9 >I&4 TO

ACJ9IRE FROM T4E CAR /

Accept .i,it- 18 ( !P)ND N !

;on/er credit period 32

i/her credit ,imit 59

;esser ch r/es 10

:etter offers 16

7@


60/86

J9E&TION +


61/86

!:I 09

!t nd rd *h rtered 06

ANALYSIS OF RESULTS

81


62/86

J9E&TION +? >4IC4 AMERICAN E8PRE&& CAR O :O9 O>N;

/s is #isible, the sample includes /merican 0*press customers of all types. $his research has not

stressed on only one particular type of card li"e the credit card but e#en on char e cards.

$hrou h this research, customer feedbac" has been enerated from all different types of /m0*

cardmembers

84

A)E4 C5$-!)#"$

16#

24#

10#5#15#

10#

16#4#

IN( person ,c rdIN( /o,d c rd

IN( corpor tec rd*orpor tep+rch sin/ c rdIN( >(**">reen B >o,d$@! Do,, r


63/86

J9E&TION


64/86

f the 1)) /m0* customersHrespondents, (6K of them use other branded cards also. nly 18K

of them use just /m0* cards. $his trend "eeps on increasin as ne!er entrants come

into the mar"et. $his pie chart sho!s that only 18K of the respondents are hard core

/merican 0*press loyalists. Rest of them opt for other brands also. $his may be

because of dissatisfaction !ith the ser#ice offerin s or because of better ser#ice

offerin s by competitors.

J9E&TION .? >4IC4 OT4ER CAR & O :O9 O>N

86


65/86

/ccordin to this sur#ey, '4 K of the /m0* customers o!n Citiban" cards also. 4)K of them

o!n ;B% cards, 17K o!n ;tanchart and :6 K o!n ;BC Cards. ther brand cards hold 41K

share of this chun". $his i#es a brief o#er#ie! of the threat posed by other card issuers to

/m0* cardmembers.

J9E&TION ? O0ERALL# 4O> &ATI&FIE ARE :O9 >IT4 :O9R AMERICANE8PRE&& CAR ;

87

OTHER BRANDS OWNED

32#

14#6#0#

15#

7#

1#5#

20#

*iti. n

8!:*

: n of : rod

: n )f Indi

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I*I*I


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$his research sho!s that at least 97K of the /m0* cardmembers are satisfied !ith their cards.

nly (K of the respondents feel some!hat dissatisfied !ith their /m0* card, and 19K are

neutral about their feelin s. /lthou h the customers are satisfied !ith the cards, !hat is

important is the satisfaction !ith the customer ser#ice of /m0* as a !hole.

J9E&TION B? O0ERALL# 4O> &ATI&FIE ARE :O9 >IT4 AMERICAN

E8PRE&&" C9&TOMER &ER0ICE;

88

SATISFACTION WITH AMEX CARDS

22#

53#

17#8# 0#

Der- s tisfied

!ome'h ts tisfiedNe+tr ,

!ome'h tdiss tisfiedDer- diss tisfied


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$he data sho!s that 9(K of the customers are satisfied !ith /merican 0*press ser#ice

offerin s. ut of these, ') K are #ery satisfied and 6(K are some!hat satisfied and

only 8K are some!hat dissatisfied !ith the ser#ice offerin s of /m0*. $his sho!s

hi h customer satisfaction le#els as re ards the

J9E&TION ? 4O> LIKEL: >O9L :O9 $E TO RECOMMEN AMERICAN

E8PRE&& CAR & TO OT4ER&;

89

SATISFACTION WITH AMEX

SERVICES

30#

48#

16#6# 0#

Der- s tisfied


!ome'h tdiss tisfiedDer- diss tisfied


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n bein as"ed !hether they !ould recommend /merican 0*press cards to others, 79K of them

said that they !ere some!hat li"ely to recommend to others. 4(K said that they !ere #ery li"ely

to recommend to others. +hile only 14K said that they !ere some!hat unli"ely to recommend

/m0* cards to others. $his sho!s that at least (7K of the respondents !ere !illin to

recommend /m0* cards to others.

8(

RECOMMENDATION

28#

57#

3#

12# 0#er- ,i e,-

!ome'h t ,i e,-

Not s+re

!ome'h t+n,i e,-

er- +n,i e,-


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J9E&TION D? TO >4AT E8TENT OE& AMERICAN E8PRE&& C9&TOMER

&ER0ICE E8CEE :O9R E8PECTATION&;

$he data sho!s that '9K of the respondents felt that /m0* ser#ices surpassed their e*pectations

to a reat e*tent. 6'K felt that the ser#ices surpassed e*pectations to some e*tent. /nd 4)K felt

that /m0* ser#ices surpassed their e*pectations to a little e*tent. $his analysis sho!s that

ho!e#er /m0* ser#ice offerin s surpassed the respondents e*pectations, yet it !as on an

a#era e not to a #ery reat e*tent. /m0* needs to impro#e its ser#ice offerin s in such a !ay

that it surpasses the customer s e*pectations to a reat e*tent.

8@

EXPECTATIONS SURPASSED

0#

37#

43#

20#

0#

er- /re t e9tent>re t e9tent!ome e9tent;itt,e e9tent

er- ,itt,e e9tent


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J9E&TION -? >4IC4 OF T4E FOLLO>ING &TATEMENT ACCOR ING TO :O9

MO&T REPRE&ENTATI0E OF AMERICAN E8PRE&&/

+hen as"ed to tic" the statements that !ere most representati#e of /m0*, 197 felt that

people at /m0* are elpful and riendly. 47K felt that people at /m0* are polite, cheerful

and are "no!led eable operators. 1@K felt that /m0* is in tune !ith the needs of its clients.

/nother 1@K felt that /m0* is prompt in dealin !ith customer complaints.

1@K felt that people at /m0* are un!illin to o the e*tra mile for its customers. /nother

1)K felt that they !ere often put on hold for a lon time. /m0* needs to modify its ser#iceofferin s in such a manner that the customers retain no ne ati#e feelin s about their ser#ice

offerin s.

9)

REPRESENTATIVE STATEMENTS

17#

25#

19#

19#

13#

0#

7#e,pf+,

Po,iteIn t+nePrompt@n'i,,in/Poor s+pportP+t on ho,d


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J9E&TION *? 4O> &ATI&FIE ARE :O9 >IT4 T4E EFFICIENC: OF CALL

4AN LING >4EN PLACING CALL& TO AMERICAN E8PRE&&;

#erall, the satisfaction le#els re ardin the call handlin ser#ices of /merican 0*press are

hi h. 9)K of the respondents !ere satisfied !ith the call handlin ser#ices of /m0*. ut of

these, 61K !ere some!hat satisfied, 4@K !ere #ery satisfied, 49K !ere neutral and 'K !ere

some!hat dissatisfied !ith the call handlin ser#ices of /m0*.

/m0* needs to con#ert the opinions of these ')K !ho !ere either neutral or dissatisfied, by

impro#in their call handlin ser#ices.

91

CALL HANDLING

29#

41#

27#

3# 0#er- s tisfied


!ome'h tdiss tisfied

er- diss tisfied


72/86


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J9E&TION ++? >4AT ARE T4E A E $ENEFIT& :O9 >I&4 TO ACJ9IRE

FROM T4E CAR /

$his uestion pertains enerally to the /m0* credit card. 66K of the respondents !ant /m0* to

pro#ide them !ith a hi her credit limit. 46K !ant a lon er credit period. 1'K!ant acceptability.

14K !ant /m0* to pro#ide better offers and 9K !ant lesser char es to be applied to their cards.

9'

EXTRA BENEFITS

13#

24#

44#

7#12#

Accept .i,it-

;on/er creditperiod

i/her credit ,imit

;esser ch r/es

:etter offers


74/86

J9E&TION +


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Majority of the respondents i.e. more than 6)K of them percei#ed /merican 0*press as the

second most preferred card issuer. /nother 4@K of them percei#ed Citiban" as the second most

preferred card issuer in %ndia.

Considerin both the charts, at least 9) K of the respondents percei#ed /m0* to be amon st the

top t!o most preferred Card&issuers. $his fi ure may sound ood but the fact here is that all the

respondents are /m0* users. /nd still for 9)K of them it is not the most preferred card. $his

perception amon st the customers could pro#e to be dan erous for /m0*. /m0* !ill ha#e to

ta"e some stron measures to reinforce its superiority in the minds of its customers.

97

SECOND RAN

05

101520253035404550

A m 6 9

* i t i .

n 5 8 !

: *

! t n

* h r t ! : I

P E R C E N T A

G E

!eries1


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DEMOGRAPHICS

39# of the respondents 'ere .et'een the /e of 20 30

36# of them 'ere .et'een the /e of 30 40

21# of them 'ere .et'een the /e of 40 50

)n,- 4# of them 'ere .ove the /e of 50

98

AGE

0 10 20 30 40 50

20 30

30 40

40 50

A:)D 50


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14# of the respondents h d income .et'een (s%15 000 25 00021# of the respondents h d income .et'een (s% 25 000 40 000

17# of the respondents h d income .et'een (s% 40 000 60 000

04# of the respondents h d income .et'een A.ove (s%60 000

99

INCOME

0 10 20 30 40 50 60

15 000 25 000

25 000 40 000

40 000 60 000

A.ove 60 000


78/86

RECOMMENDATIONS

9(


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STEPS NEEDED TO BE TA EN BY AMERICAN EXPRESS IN ORDERTO STRENGTHEN ITS CUSTOMER SATISFACTION:

1. OFFER 4ELPF9L &9GGE&TION&/ /m0* call handlers should offer helpful su estions

to their callers since it ma"es customers feel better informed.

4. COMM9NICATE REG9LARL: . ;tayin in touch !ith customers lets them "no! youare thin"in about them, not ta"in them for ranted. /m0* should send helpful information

and not just ad#ertisin material. Customers li"e to "no! !hat you are thin"in , not just

!hat you are sellin . $his !ill help in brin in the customers closer to their business.

'. GENERATE ENT49&IA&M IN T4E EMPLO:EE&/ /merican 0*press should train its

employees in the call centers in such a !ay that their interaction !ith the customers remains

enthusiastic and the perception of un!illin ness to help be remo#ed.

6. RE&PON PROMPTL:/ /m0* should try and reduce the time the customer is put on

hold. / prompt response means someone cares and a delayed one tells the opposite story.

7. CREATE F9N AN E8CITEMENT/ Dull dri#es customers a!ay. $he !ay to do more

business is to ma"e it fun.

8. MAKE IN0OICE& &IMPLE# CLEAR AN EA&: TO REA / $he in#oice is acompany2s most important piece of paper&&and the most ne lected. 0*perts in communication

should desi n in#oices. +hen customers recei#e in#oices, they should feel they recei#ed

more than their money2s !orth. int3 $he description of !hat is purchased should seem

9@


80/86

bi er than the price char ed. %n#oices should be customi5ed to pass the communications

test.

9. PER&ONALI E ALL COMM9NICATION&/ 0#erythin recei#ed by a customer should

be fully personali5ed. No UDear CustomerU letters.

(. AME8 EMPLO:EE& &4O9L $E TRAINE TO $E PROACTI0E RAT4ER

T4AN REACTI0E/ Don2t !ait for the customer to as" ho! to cut costs ta"e the initiati#e.

Be percei#ed as pro&acti#e by sho!in customers !ays to sa#e money. $hey2ll be less li"ely

to bolt to a competitor for a lo!er price because they2ll "no! that you are loo"in out for

them.

()


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ANNEXURES

(1


82/86

J9E&TIONNAIRE

De r (espondent the o.Eective of this st+d- is to no' -o+r s tisf ction ,eve, s

re/ rds the services of Americ n pressF services% Gind,- fi,, the fo,,o'in/

(** ">reen B >o,d$

@! Do,, r *orpor te c rd

Affinit- c rds

*o .r nded c rds " N;$

2% Do -o+ o'n some other .r nd c rds ,soH

= ! N)

3% Which other c rds do -o+ o'nH

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A

American Express No

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