Welcome to Extreme Investor Network, where we provide you with exclusive insights and expert advice on all things money. Today, we are diving into how American Express CEO Steve Squeri is attracting more Millennial and Gen Z customers to the company.
In a recent interview with CNBC’s Jim Cramer, Steve Squeri shared that Millennials and Gen Z customers made up 60% of new card acquisitions during the last quarter. This demographic is crucial for American Express, as younger cardholders tend to have a higher “lifetime value” than older ones. They are more likely to continue using their American Express cards as they age, creating a long-term relationship with the company.
To attract younger clientele, American Express has focused on offering cards with high value propositions. Squeri mentioned that in the past, the company used to target Millennials and Gen Z with a no-fee card, but realized that it wasn’t enough. By providing cards like the Platinum card, which offers $1400 in value for a $695 annual fee, American Express has been able to capture the interest of younger consumers.
Not only are younger customers attracted to the value proposition of American Express cards, but they are also more likely to use them for everyday purchases. According to Squeri, cardholders under 35 do 70% more transactions at restaurants than other cohorts. Additionally, more merchants now accept American Express cards, making them a convenient option for everyday spending.
As an investor, understanding how companies like American Express are targeting specific demographics can provide valuable insights into their growth potential. Stay tuned for more exclusive content and expert analysis on Extreme Investor Network.
