American Express targets businesses in three segments: merchants, corporations, and small businesses. It has developed distinct marketing programs for each segment.
In the merchants segment, American Express focuses on convincing new merchants to accept the card and on managing relationships with those that already do. For larger corporate customers, the company offers a corporate card program, which includes extensive employee expense and travel management services. It also offers this segment a wide range of asset management, retirement planning, and financial education services.
Finally, for small business customers, American Express has created the OPEN: Small Business Network, “the one place that’s all about small business.” Small business cardholders can access the network for everything from account and expense management software to expert small business management advice and connecting with other small business owners to share ideas and get recommendations.
Gender Segmentation
Research by American Express revealed that women viewed credit card as a male-specific product. In an effort to expand its cardholder base, American express focused on women as the most promising target market, so they initiated an advertising campaign to attract new female cardholders. The approach succeeded. Now, almost 50 percent of new American Express cardholders are women, compared to 29 percent when the campaign began.
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