Another Version of CEO Presentation _most revised 4-16-HUB

Deliver Optimal Value Globally Presented by: KB Consulting Group

American Express’ Vision

“to become the world’s most respected service brand”

-Ken Chenault

American Express, CEO

KB Consulting Group 2

Where Is American Express Currently?

• Operating in over 130 countries around the world 1

• Providing Superior Customer Service 2

• Customer spending is 4 times more than MasterCard and 3 ½ times more than Visa domestically

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4 KB Consulting Group

American Express’ Current Revenue Stream

55%

20%

15%

10%

The Following Strategies Will Increase American Express’ Future Global Growth

1 • Expand Relationship Care (RC)

2 • Implement Recommend-a-Friend (RAF)

3

• Implement Personal Data Management (PDM)

4 • Implement Cloud Computing


Our Recommended Solutions Will Deliver the Following Competitive Advantages


Remain relevant and accessible to new generation of customers on a global scale

1 • Deliver Globally

2 • Deliver Superior Customer Service

3 • Deliver Customer Personalization and Engagement

Objective:


Implement Relationship Care For Global Growth

Start RC Pilot

Start RC Pilot

Start RC Pilot

Next, Apply RC Pilot

RC Program Already

Exits


Our Global Relationship Care Strategy Will Boost Customer Loyalty

Implement Initial program. Constantly

survey employee happiness and RAF

ratio

Survey based on 6 employee value

metrics to evaluate culture specific

employee preferences

Analyze survey results for initial program.

Tailor specific program based on specific

country preferences

Global Relationship Care Maximizes Operating Profits


≈9% Additional Profit Gains

Due to Increase in Customer Acquisition

Our Robust IMAX Platform Will Reduce Employee Attrition

Increase Productivity and Global Relationship Care



Our Robust IMAX Platform: Interactive Employee Portal Means Retaining Competitive Talents

Reviewed On: 4/5/13

Our IMAX Platform Delivers Seamless and Simple Hybrid HR Strategies

KB Consulting Group

Hybrid HR Strategies

• Centralized authority with local empowerment

• Creates a strong system for training and promotion

• The hybrid system has been adopted by popular companies such as IBM, Panasonic, P&G and Nestle

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1. Customer Makes Comment about American Express’ products or brand

in social media forum

2. Comment detected by American Express Call

Center and routed to the best available CCP

3. CCP responds via social media using standard call

center agent desktop

4. Call Center managers use existing routing and

reporting tools to manage the call center

Integrating Call Center with Social Media Will Maximize Customer Engagement

1. Meet customers where they are

2. Proactively manage customer sentiment

3. Great for sales, marketing, support and customer service departments


Purpose

Why

How

Ensure that the American Express customer experience is robust both online and offline, everywhere in the world

• 33% of customers contact a company on the website • 20% of customers contact a company through email • Younger customers are online more, especially Generation Y

• Integrate American Express’ call centers with social media • Implement Recommend-a-Friend program via social media

forums such as Facebook

Integrating Relationship Care with Social Media Adds More Value For Customers


Implementing Recommend-a-Friend Through Social Media Will Increase Profitability

Benefits of Recommend-a-Friend

Relationship Care program is measured using a companywide Recommend-a-Friend metric

85% of customer care professional’s performance is based on the Recommend-a-Friend metric

There is no actual implementation of Recommend-a-Friend program through social media for American Express


Recommend-a-Friend Network

r

r

r

r

r

r r

r

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Recommend-a-Friend Profitability Projections

r


≈3.5% Additional

Profit Gains

Recommend-a-Friend

Creating American Express App Hub Means More Personalized Service For Customers



Integrate PDM Robust Customer Engagement Means More Value Added Service


PDM + Customer Engagement= More Opportunity to Increase Brand Awareness

KB Consulting Group

Implementing Cloud Computing Means Seamless Connectivity to Customers and Employees

1 • Customization and Flexibility

2 • Scalability and Reporting

3 • Rich and Functional Features

4 • Integrated Marketing Tools

5 • Design and Layout Elements

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Cloud Computing Drives Innovation, Competitive Edge, and Mobility

Cloud Computing Reduces Development Time and Boosts Shareholder Value



Apply Relationship Care Model Globally Leverage New Technologies to further

connect with customers and employees

Modify Relationship Care Model to adhere to cultural and social sensitivities

Implement social media such as Facebook as the primary customer touch-point; integrate social media with call center

platform and other online portals

The Following Strategies Will Maximize American Express’ Future Global Growth

r

Cloud, PDM and IMAX Combination Will Provide Added Financial Benefits and Value

Total Initial cost of project is $1,608 Million but the Net Present Value: is $9,134 Million.

If NPV is greater than zero, then this project is considered a valuable investment. The NPV for this project is $9,134 Million, which is > 0.

Internal Rate of Return: is higher than firm's cost of capital, therefore cloud, PDM and IMAX combination project is a good investment. IRR is 224% > 13%

Profitability Index is 6.68, which means for every invested NPV dollar, yields $6.68 in present value inflow. Payback period is in 5 months and 9 days.


Re-evaluate $2.125 billion allocated for future projects and set aside part of the budget for implementing our proposed solutions for future success and growth of company in the global market.

American Express has $7,221 Million in Retained Earnings and a positive FCF of $3,080 Million, therefore spending $1,608 Million in our proposed solution is within the budget and would yield NPV of $9,134 Million.

The Profitability Index of the proposed strategy is $6.68, which means for every NPV dollar invested the project yields $6.68 in profits.

Implementing Cloud, PDM and IMAX project is very sound investment which would increase American Express’ future shareholder value.

1

2

NPV + IRR + ARR= Value =Happy Shareholders

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Time Line for Implementing Our Proposed Solutions


2013 2014 2015 2016 2017

Deliver Innovative Technology Globally

Maximize Your Employees’ Talents Globally

Deliver Optimal Service to Your Customers Globally

CLOUD Computing

IMAX Platform

PDM, RAF and RC

Innovation + Talented Employees + Loyal Customers= Delivers Optimal Value to Shareholders


Any Questions?

KB Consulting Group, Inc “Unlock Your Potential”

Bahareh Seifikabir Founder

[email protected]

Cell#: 909-938-8729

KB Consulting Group, Inc “Unlock Your Potential”

Katerina Hoyo Founder

[email protected]

Cell#: 323-377-2825


Documents

Another Version of CEO Presentation _most revised 4-16-HUB