The American Express Co. (AmEx) has over the last few years lost grip of its loyal cardholders such as Chris Burch due to its unsatisfactory services. Burch has been a cardholder with the agency since 1979 but opted out after its concierge service failed to give him the dignified customer service that he pays for. He communicated about the same to Mr. Chenault, AmEx’s outgoing CEO, but nothing much was done to change the situation. According to Chris, all he got was an email from an unknown executive that to him read more like a formal letter. Tired of such inconveniences, he has since moved on to J.P Morgan Chase & Co. from where he now holds a Sapphire Reserve Card. Read his views on business related matters, hit on this link on entrepreneur.com.
Christopher Burch is just one among many who are dissatisfied with AmEx. If something urgent is not effected to win back such loyal subscribers, then the agency’s future looks dim. There are a handful of luxury card providers out there waiting to reap from AmEx’s misfortunes including PayPal and J.P Morgan. The effects of this are already evident as its major co-branding partners such as JetBlue and Costco have already chickened out. In US credit card purchase, on the other hand, AmEx’s volume declined by over 3% to 22.9%.
Incoming CEO at AmEx Mr. Squeri has a lot on his shoulders if he is to get Chris Burch and co. back on board. Additionally, he is also facing another challenge of competing with PayPal for the millennial cardholders who to this end have opted for the upstart competitor. Even though Chenault has made several steps towards having its competitiveness back, Squeri will still have to invest in the digitization of its services. He also will have the responsibility of reinventing the American Express Platinum Card and the rewards that come with it. For an additional article, check architecturaldigest.com.
About Chris Burch
Christopher Burch is a serial investor whose base is in New York. His areas of business interest include real estate development, hospitality, and fashion e-commerce. He was the founding CEO of Burch Creative Capital.
Key to Chris’s investment success is his ability to brand and market that brand effectively. His 5-star hotel- Nihiwatu- has taken the hospitality sector by storm and won the best hotel in the world award in 2015. To read more about Nihiwatu, browse on this.
Have an in-depth look at an entrepreneur’s profile on http://www.burchcreativecapital.com/