Let’s say you run the credit card division at American Express. To build revenue (and profits) for your division, you need to do three things: 1) get more people to apply for and use your card, 2) get more merchants to accept your card, and most importantly 3) make your card the preferred method of payment by both consumers and retailers.
Now let’s talk about the barriers to entry. For consumers, it is the fact that the annual fees for your card far exceed those of the MasterCard and Visa cards they can get at their banks, and the fact that fewer merchants accept the card. And for merchants, the barriers are that the merchant fees are significantly higher than with MasterCard or Visa, and that fewer customers carry the card.
So how do you grow your business? With cards dealt the way they are, clearly it’s going to take more than a clever ad campaign to overcome those significant barriers.
In this case, American Express didn’t create a campaign; they created a...







