For many, the American Express card is an indication of success. But as many cardholders in Europe know only too well, Amex is commonly rejected by retailers outside of major cities.
But as the worldwide bank card giant continues to try to achieve a foothold amongst reluctant retailers, it’s betting on attracting young customers with the assistance of the world’s biggest pop stars.
Elizabeth Rutledge, Chief Operating Officer of Amex, said Assets that Generation Z and Millennials now purchase 68% of cards worldwide.
These younger shoppers are hooked on lifestyle amenities like entertainment, dining and travel. Amex is now catering to those needs with a powerful give attention to the entertainment sector.
“It’s about experiencing the excitement of a Formula 1 race or gaining access to exclusive culinary experiences,” said Rutledge.
In the UK, Amex has reached out to young Brits with partnerships at London festivals similar to British Summer Time and All Points East. Cardholders can profit from early access to tickets and receive discounts on site.
The group collaborated with Gen-Z pop superstar Olivia Rodrigo on their successful second album last 12 months. offaland a corresponding sold-out world tour.
Amex hosted a special event following Rodrigo’s concert in Berlin, where cardholders and other fans enjoyed local artists and DJs at an after-party. Fans also had access to special checkouts for limited edition merchandise.
The undeniable fact that nearly 60% of Generation Z reportedly describe themselves as “superfans” of their favorite artists increases the appeal of those perks, in accordance with Rutledge.
In addition, Amex offers card members the chance to take part in exclusive culinary events, including restaurant openings, including Great British menu Winner Dan McGeorge’s latest spot Vetch in Liverpool.
The hope is that attracting younger Amex customers will lead to them remaining loyal to the cardboard as they become older and their income increases.
“They really represent a great potential lifetime value for us as we can accompany them through all of their different life cycles as their needs evolve and change.”
In the US, Amex is pursuing the identical concept: there, the corporate recognized the universal need of Generation Z and Millennials for experiences and started to adapt its rewards.
This marks a shift from the previous give attention to points-based rewards and other advantages that proceed to assist sustain members’ spending. Partnerships with specific products, similar to Disney+, allow users to profit from discounted subscriptions. When shopping at other retailers, similar to RayBan, Amex customers receive cashback opportunities.
Amex has tried various strategies prior to now to draw young customers, but has needed to learn so much along the way in which.
“Until about 10 to 15 years ago, we thought that fee-free cards were the entry point to attract younger customers to the franchise,” said Howard Grosfield, president of U.S. customer support at American Express, Assets in June.
“We’ve learned that this isn’t the right strategy for Millennials and Generation Z. They like brand affiliation. They like to travel and eat out, and they like the special access and experiences that our premium cards bring.”
Amex continues to expect that its younger customers will turn into more accustomed to the standard rewards system as they become older, but within the meantime, it’s proving to be a successful approach to engage Gen Z and Millennials with experiences and keep Amex cards.
However, Europe continues to pose obstacles to the corporate’s growth.
European progress
Compared to its presence within the US, Amex has long lagged in Europe. Retailers and grocers, especially small ones, are reluctant to just accept the cardboard of their stores because transaction fees are too high. They have as a substitute chosen to just accept Amex’s arch-rivals Visa and Mastercard.
The group leverages third-party partnerships, including a take care of PayPal, to enable shoppers to make use of their Amex cards on the continent.
“We are focused on expanding acceptance in key cities where our cardholders live, work and travel,” Rutledge said.
Amex’s rewards programs have long been the corporate’s unique selling point amongst other bank card providers. And as Gen Z and Millennials turn into increasingly hooked on buy now, pay later corporations like Klarna, Amex is banking on perks that the interest-free lender cannot compete with.
However, Amex’s fees proceed to hamper the corporate’s ability to entice Europeans and the tens of millions of Americans who travel to the continent every year to make use of its cards.
In June, eBay banned the usage of Amex on its site, citing “unacceptably high fees,” raising the danger that other retailers could follow suit in the continuing bank card fee war. Customers can still use their Amex card on eBay through PayPal.
“We are certainly disappointed with eBay’s decision to stop accepting American Express cards,” Rutledge said.
“I believe that this will limit customers’ payment options and take away that service and security.”
Rutledge added that eBay accounts for just 0.2 percent of its total network volume.
