Recommended Reading: AMEX Rex no more

Devin Leonard and Elizabeth Dexheimer have an interesting feature-length article about the decline of American Express aka “AMEX.”

I am surprised at some of the umbrage attributed to American Express personnel in the article. They apparently think their business existing for over 150 years is reason enough to continue to exist. Certainly, service and quality matter. However, in a world where every point of cost is scrutinized backwards and forwards to justify its existence, why wouldn’t the merchant fees of a credit card company? Too late, it appears they may be realizing that “exclusivity” should mean more than higher prices among decision makers.

Back near the turn of the century, in 1999, American Express rolled out its Blue card, which was targeting young’uns with some new-fangled ideas like no annual fee and waiving the traditional initiation ceremony involving buggy whips.

Hard as it may seem for some readers, I was deemed in that young demographic back then, and so telemarketers tracked me down to conduct an in-depth survey about my impressions of American Express. It was pleasant and the questions they asked were intriguing: AMEX was hoping to change minds with this launch.

As I later recounted to my dad that, despite AMEX’s clear desire to be known as the Cadillac of credit cards, I always thought of it as the Buick. In empathy for AMEX, my dad visibly winced.

I unfairly think of Buick, then as now, as “that company that still makes cars… probably for old people who really want a Cadillac.” Given my dad’s reaction, I’m not the only one (he did not counter my assessment of Buick).

This isn’t to say I dislike American Express. I think of their travelers’ cheques fondly… and their small business efforts via Open and now also with ExpressPay sound like a good plan.

But the high merchant fees always struck me as odd, as if AMEX didn’t understand a fundamental way the economy had evolved to be far more service-oriented. People seek out deals more so than shelter in the embrace of a brand these days. Lord knows if I find service and quality with one brand, I try and keep on coming back, but kicking a brand to the curb is easier than ever unless you have a cable monopoly — and even those folks are beginning to see the end.

So I guess we’ll see how American Express winds up. Re-inventing themselves as the ultimate 21st Century concierge like they seem to be doing with the Centurion Lounges could be a cool way to go.