another version of ceo presentation _most revised 4-16-hub
TRANSCRIPT
American Express’ Vision
“to become the world’s most respected service brand”
-Ken Chenault
American Express, CEO
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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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The Following Strategies Will Increase American Express’ Future Global Growth
1 • Expand Relationship Care (RC)
2 • Implement Recommend-a-Friend (RAF)
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• Implement Personal Data Management (PDM)
4 • Implement Cloud Computing
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Our Recommended Solutions Will Deliver the Following Competitive Advantages
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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:
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Implement Relationship Care For Global Growth
Start RC Pilot
Start RC Pilot
Start RC Pilot
Next, Apply RC Pilot
RC Program Already
Exits
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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
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≈9% Additional Profit Gains
Due to Increase in Customer Acquisition
Our Robust IMAX Platform Will Reduce Employee Attrition
Increase Productivity and Global Relationship Care
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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
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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
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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
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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 Profitability Projections
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≈3.5% Additional
Profit Gains
Recommend-a-Friend
Creating American Express App Hub Means More Personalized Service For Customers
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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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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
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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.
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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.
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NPV + IRR + ARR= Value =Happy Shareholders
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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
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Any Questions?
KB Consulting Group, Inc “Unlock Your Potential”
Bahareh Seifikabir Founder
Cell#: 909-938-8729
KB Consulting Group, Inc “Unlock Your Potential”
Katerina Hoyo Founder
Cell#: 323-377-2825
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