American Express continues to build out its Amex Offers program by providing a unique return on investment (ROI) for brands, as business partners have a better chance of their offer leading to a transaction, versus a click or view.
The company is looking to expand the programs by adding offers with a seasonal focus like summer or Valentine's Day.
With tightening budgets and marketing dollars being scrutinized, marketers are extra mindful of where they invest. There were more than 2,000 offers available in 2022. Hundreds of offers from 1,000 brands were engaged in the program.
The program leverages closed-loop aggregate data from American Express cardholders, according to Erin Frankcombe, vice president and general manager of Amex Offers and business insights at American Express. The company issues credit cards and acts as the merchant acquirer.
“The data helps merchants figure out how to best target card members to drive growth for their business,” Frankcombe said.
Savings per merchant partner continues to grow. The average amount of redeemed saving per partner continues to grow. In 2021, globally it was $28 per partner, up to $33 per partner today.
The merchant participating in Amex Offers only pay when customers spend. Last year, Amex Offers drove 13 billion impressions.
The program served 1.5 billion impressions in December 2022. The program isn’t new. It launched in 2012.
And despite its growth, some cardholders have not heard of the program. The biggest challenge—tying the name of the program — Amex Offers — to the offers on its cardholder website.
American Express has about 120 million cardmembers. All have access to the program. The offers, which are personalized, range from travel, entertainment and high-end luxury retail, to quick service restaurants and fine dining, and more.
Consumers click on the offers, which are added to a virtual wallet. When the consumer makes the purchase, American Express sends an email stating that the offer has been redeemed.
The technology looks at spend paths. It analyzes the data in aggregate and personalizes offers.
Consumers participating in the program spend online. In fact, one-fifth of their total spend is online. Of those who participate in the program engage 82X more per month with the Mobile App than Non-Amex Offers Engaged Card Members. About 49% are under the age of 45.
Frankcombe said if a high-end retailer wants to drive greater spend from customers in the store, it may offer merchant rewards points for customers spending more than $500. A grocery might open in a new location and want to target specific consumers who have not spend with that retailer.