Marketing the
American Express Charge Card to Millenials
American
Express is a leading global payments, network and travel company backed by one
of the world's most recognized brands. American Express is unique in the
payments industry as an issuer of cards as well as a worldwide network that
processes millions of merchant transactions daily. In 2008, consumers and business spent $683
billon on American Express cards, the most of any card issuer. There are about
92 million American Express cards in the marketplace around the world, which
are accepted by millions of merchants in more than 200 countries and
territories.
Project
Overview
The
U.S. Consumer Card Services Group of American Express is placing additional focus
on the opportunity to attract Millennials (age 22-29) to the American Express
Charge Card as their payment vehicle of choice.
Millennials are actively taking steps in their lives to set and achieve
personal and financial goals that allow them to create and experience personal
fulfillment. They see themselves as
creators and feel entitled to express themselves, their opinions and
beliefs. Millennials tend to be cynical
about marketing, but appreciate brands who let them have a voice and facilitate
transparent participation.
Key
questions include:
- Characterize the
competitive marketplace for emerging Millenial credit card users.
- How and where should
American Express communicate with Millennials who do not carry an American
Express Card?
- What Card acquisition
channels, both traditional and innovative, should American Express pursue
to attract Millennials?
- What types of
incentives should American Express pursue to encourage Millenials to take
and use the Charge Card over the product they are using today (competitive
credit card or debit)?
- What other
tactics (partnerships, events, etc…) are important to pursue to reach this
generation?
- For each recommended
action, what are the projected risks and benefits?
The
Practicum team will:
- Review current credit card
programs aimed at the Millenial segment
- Research the actions, motives,
and credit card consumption behavior of affluent Millenials
- Interview relevant at American
Express and appropriate vendors
- Conduct focus group interviews of
target Millenials who are not currently American Express users
Deliverable:
- Present a full
acquisition marketing plan that outlines target market, channel mix,
incentives, marketing tactics, and success metrics.