American Express Co. is awaiting a patent for its Diverse Marketplace Intelligence analytical system, which it designed to identify and target cultural groups for marketing opportunities.
The system harnesses the many components at Amex's disposal, including information about its cardholders' spending patterns, said Kerrie Peraino, Amex's chief diversity officer. The company gave no further details on the system.
The Diverse Marketplace system helped Amex identify a new cultural group when it began supporting the Stonewall Wall Equality Walk in Brighton, England. The system identified an opportunity to market to the local gay community, which eventually led to Amex's sponsoring the annual summer event. It commemorates standing up to the bullying of gays.
Amex not only sponsored the walk but also blanketed Brighton businesses with posters promoting the event, and was able to sign up new merchants to accept its cards.
"We struck a chord with the community," Peraino said.
"Rather than just focus on Amex being accepted in Brighton, the effort really focused on how important the walk is to the community."
One potential benefit of this type of marketing is loyalty, said Dennis Moroney, the director of research for bank cards at TowerGroup. As Amex found with its support of the Wall Equality Walk, groups often remain loyal to a brand if they feel it supports their community.
"Once you penetrate those markets you find a great loyalty, including less sensitivity to pricing. So attrition is less of an issue," Moroney said.
