PRESENTED BY: Joanna Macleod

AMERICAN EXPRESS BUSINESS TRAVEL

Adapting to a changing environment – our journey so far

ECEW 14-15th May 2103

AXP Public

AGENDA

• The way we live is continually changing

• The customer service industry has evolved to meet the service demands of our customers

• Virtual networks are now a proven model with American Express transitioning more of its front line travel consultants to a home based network

• Internal and client resistance to the evolving model are focused around four themes

14th May 2013 2

AXP Public

THE WAY WE LIVE IS CONSTANTLY CHANGING

COMPUTING: CONNECTIVITY:

THEN…(Classrooms / Lectures / Reading

Materials)

NOW…(Tablets / Smartphones)

THEN…(Dedicated Camera / Manually Transfer Digital Files / Develop

Films

NOW…(Instagram / Always With You Camera (Smartphone) / Instant Digital Effects /

Share / Sync / Discover)

THEN… NOW…

NOW…(Codecademy / Coursera / Interactive

/ Online / Accessible by Anyone Anywhere Anytime)

PHOTOGRAPHY:

THEN…(Desktops / Notebooks

NOW…(Tablets / Smartphones)

EDUCATION:

14th May 2013 3

AXP Public

GLOBALISATION AND 24/7 DEMAND HAS CHANGED HOW WE SERVICE OUR CUSTOMERS

14th May 2013 4

ConsolidationStandardisation and

centralisation to large centers

Home Based Servicing

Virtualisation model becomes proven and

starts growing exponentially

We need to be more flexible with a global network of skilled customer facing professionals

Adaptive Global NetworkLeveraging Home Base

Servicing, offshoring and local service centers

2000

LocalisedDisparate, non-standardised-

servicing

RealignmentResponding to cost

pressures and demands from customers for

increased quality of service

Offshoring and multi-lingual regional hubs

Leveraging labour arbitrage and achieving

economies of scale

2015

AXP Public

THE TREND FOR CUSTOMER CONTACT EMPLOYEES TO MOVE HOME IS PROVEN

14th May 2013 5

As the US heads towards 63MM home workers by 2016, continued advances in technology and process innovation present additional opportunities globally

20% of current customer contact employees are home based with plans to double that amount by 2014

Participants saw increased results in:• Employee Attendance 74%• Employee Retention 64%• Productivity 58%• Seasonal Staffing 45%• Intraday Staffing 38%

2013 AHCC Benchmarking

0-20 21-40 41+0%

20%

40%

60%

80%% of Customer Contact Team at Home

2013 2014

Connectivity• High speed broadband

Staffing• Desire for flexible shifts

New Hire Effectiveness• Improved Virtual training capabilities

Engagement• Social platforms

Enablers

AHCC = At Home Customer Contacts, AHCC_Benchmarking_Survey_Results2016 increase, Gartner, Hype Cycle for Cloud Computing, August 2012

AXP Public

OUR HOME BASED SERVICING FOOTPRINT NOW EXTENDS ACROSS 13 COUNTRIES

14th May 2013 6

Home Based Servicing Agents as a % of total agents

Potential remains for expansion in both existing and new markets

Global

Singapore

Switzerland

Argentina

Mexico

France

United Kingdom

Netherlands

Belgium

Nordics

Canada

Australia

United States

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

45.4%

3.5%

7.1%

13.8%

21.0%

23.3%

23.5%

24.8%

24.9%

25.3%

56.9%

65.8%

77.8%

2013 Exit 2014 Exit

AXP Public

THE BUSINESS CASE IS STRONG...

14th May 2013 7

Better Services & Solutions

Employee Financial

Client

Engagement & Loyalty Expense Reduction

• Fixed Cost reductions - real estate & related

• Flexible Cost Model

• Work-Life balance

• Work place happiness

• Platform Flexibility

• Crisis Management

• Retain/Attract Best Talent

AXP Public

Q2 2012 Q3 2012 Q4 2012 Q1 2013

Non-Virtual Virtual

2.3 ppt

...and their experience when calling out of hours

GREATER FLEXIBILITY IS CLEARLY BENEFITING OUR CLIENTS

14th May 2013 8

Feb Mar Apr

May Ju

n Jul

Aug Sep OctNov Dec

Jan1

3

Feb13

Mar

13

Trend in Customer Satisfaction

HBS migration

After Hours ServicingCore Servicing

0.7 ppt 1.4 ppt 2.6 ppt

With increases in customer satisfaction during their travel booking experience…

AXP Public

WHAT ARE THE KEY CONCERNS?

1.  Can’t control the home environment from a security perspective

2.  People won’t work as hard at home

3.  Cultural connection weakens at home

4.  Service level slides because people are distracted

14th May 2013 9

AXP Public

QUESTIONS?

14th May 2013 10

Joanna Macleod, GM/VP EMEA Service Delivery