Human Centered Experience

EP03 - The American Express Paradox


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Why Your Best Customers Won’t Leave When You Raise Prices: The American Express Paradox

American Express has successfully increased its annual fee to $895 by restructuring the value of its Platinum Card, creating a paradox where raising the price increases customer engagement and retention. This is achieved through forced habitual engagement, loss aversion, and a shadow retention layer. The lesson is that price is just a number, but value is a structure.

Chapters

  • 00:00 The American Express Paradox
  • 07:18 Shadow Retention Layer

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Human Centered ExperienceBy Hitesh