American Express built its brand on elite travel benefits and luxury perks – but now it's shifting to win over a younger audience: Gen Z. In 2023 alone, Gen-Z and Millennials accounted for 75% of Amex's new Platinum and Gold card accounts. In this article, we explore how Amex is using experiential perks and dining-focused rewards to reel in the next generation of cardholders.

The Shift in Credit Card Demographics

For decades, American Express positioned itself as the card of choice for business travelers and affluent professionals. The iconic black and Platinum Card were symbols of success, typically found in the wallets of established executives and luxury travelers. But as consumer preferences evolve, so too has Amex's target audience.

Today's younger consumers approach financial products differently than previous generations. They value experiences over possessions and seek brands that align with their lifestyle preferences. Recognizing this shift, American Express has strategically transformed its approach to capture the attention – and loyalty – of Gen Z consumers.

Recent data shows that millennials and Gen Z cardholders increased their spending by 12% in recent quarters, outpacing other demographic groups. This growth makes them the fastest-growing segment within Amex's cardmember base, according to CEO Stephen Squeri.

Why Gen Z is Drawn to Amex

Despite annual fees that can exceed $300, young consumers are flocking to American Express cards. But what's driving this attraction?

The Status Symbol Effect

For many Gen Z consumers, carrying an Amex card has become a status symbol – a physical representation of financial achievement. The distinctive metal cards create a sensory experience that plastic simply can't match, making them highly shareable on social media. Just search "Amex credit cards" on TikTok, and you'll find countless videos of young people proudly displaying their cards.

As LaQueshia Clemons, a clinical social worker and accredited financial counselor, notes in a Bankrate article: "Sometimes, especially when you're younger, you want to show off in front of your friends." The weight of a metal Amex card hitting the table at a restaurant creates a moment of distinction that resonates with status-conscious young consumers.

Experience-Based Rewards

Gen Z and millennials prioritize experiences, especially in dining and travel. Amex has tailored its rewards structure to deliver precisely in these categories, with statement credits for popular services like Uber, dining, and entertainment platforms.

For instance, the refreshed American Express Gold Card now includes a $100 annual Resy credit and $120 in annual dining credits for popular establishments like Grubhub and The Cheesecake Factory. These benefits directly align with the spending habits of younger cardholders, who transact almost twice as much on dining compared to other generations.

Digital Integration

Raised in a digital-first world, Gen Z expects seamless digital experiences from financial providers. Amex has invested heavily in its mobile app and online platforms, creating intuitive interfaces that appeal to tech-savvy consumers.

A report by Pinwheel found that 61% of Gen Z and 54% of millennials would switch financial service providers for better digital capabilities. By prioritizing digital innovation, Amex positions itself as a modern financial brand that understands how young consumers want to interact with their money.

Amex's Strategic Pivots

American Express's transformation into a Gen Z favorite didn't happen by accident. The company has made several calculated moves to appeal to younger consumers without alienating its traditional customer base.

The Resy Acquisition

In 2019, Amex acquired Resy, the popular restaurant reservation platform. This move marked the beginning of Amex's deeper push into dining experiences – a category particularly important to younger cardholders.

Through Resy, Amex cardholders can access exclusive reservations at in-demand restaurants, receive early notification when tables become available, and enjoy VIP treatment. For the Platinum card, this includes completely exclusive tables set aside only for cardholders at the hottest restaurants – a perk that resonates strongly with experience-hungry Gen Z consumers.

The strategy is working: in recent quarters, 80% of new Gold card accounts were opened by millennials and Gen Z, showing a 30% higher uptake than the American Express Platinum Card.

Product Refreshes with Targeted Benefits

Rather than creating entirely new products, Amex has strategically refreshed its existing cards with benefits that appeal to younger consumers. The Gold Card, with its focus on dining and everyday spending, has become particularly popular among Gen Z.

"The new benefits and capabilities we have added in popular categories like dining are fueling our growth with millennial and Gen Z consumers," noted Squeri in a recent earnings report. These refreshes show Amex's commitment to evolving its offerings based on changing consumer preferences.

Data-Driven Personalization

American Express leverages its vast data resources to create personalized experiences for cardholders. By analyzing spending patterns and preferences, Amex can tailor offers and recommendations that resonate with individual cardmembers.

This approach has proven particularly effective with younger consumers, who appreciate brands that understand their unique preferences. As Elizabeth Jelenek, an American Express marketing executive with over 24 years at the company, explained in an Adweek feature, insights from customer data have led to the creation of benefits that specifically appeal to millennial and Gen Z members.

The Role of Social Media

Social media platforms, particularly TikTok and Instagram, have played a crucial role in cementing Amex's status among younger consumers. User-generated content featuring Amex cards has created organic brand exposure that traditional advertising could never achieve.

Videos showcasing the "unboxing" experience of receiving a new Amex card, the distinctive sound it makes when tapped on a counter, and the exclusive experiences it provides have proliferated across social media. This content positions Amex cards as aspirational lifestyle accessories rather than mere financial tools.

The company has reinforced this image by partnering with influencers and creating shareable content around sponsored events like the US Open and Formula One races. These partnerships extend the reach of Amex's experiential marketing efforts, connecting with younger audiences through the platforms they use most frequently.

Business Results and Long-Term Strategy

Amex's focus on Gen Z isn't just about contemporary relevance – it represents a long-term business strategy with significant implications for the company's future growth.

CEO Stephen Squeri has described the acquisition of younger cardholders as a "long-term investment" in the company's future. In a call with analysts, he explained: "These are cohorts that will continue to grow with us, that will see an uptick in organic spending over time, that will wind up being upgrading from a Green to a Gold, a Gold to a Platinum, and so forth."

This strategy has already shown promising results. American Express reported record revenues of $16.6 billion in a recent quarter, up 8% year over year. While some analysts worry about potential economic downturns affecting consumer spending, Amex remains confident in its growth trajectory, particularly among its younger cardmembers.

Interestingly, despite conventional wisdom about Gen Z being financially fickle, American Express reports that its millennial and Gen Z cardholders demonstrate higher average FICO scores and lower delinquency rates compared to broader industry benchmarks – suggesting that the company is successfully attracting financially responsible young consumers.

Conclusion: Lessons from Amex's Transformation

American Express's success with Gen Z offers valuable lessons for other established brands looking to connect with younger consumers. If you're interested in maximizing your Amex dining credits, check out our detailed guide:

1. Emphasize experiences over material benefits – Young consumers value memorable experiences more than traditional cash back or point systems.
2. Meet consumers where they are – Amex's investments in digital platforms and social media engagement show the importance of connecting through channels that younger consumers prefer.
3. Maintain brand prestige while expanding accessibility – American Express has preserved its premium positioning while making its products more appealing to younger consumers, striking a balance between exclusivity and relevance.
4. Use data to drive personalization – Understanding the specific preferences of younger consumers allows for targeted offerings that resonate on a personal level.
5. Think long-term – Acquiring younger customers represents an investment in future growth, even if the immediate returns aren't as substantial as those from more established customer segments.

As American Express continues to evolve, its ability to balance tradition with innovation will determine its ongoing success with Gen Z and future generations. For now, it appears that the 173-year-old financial institution has successfully reinvented itself for the TikTok era, proving that even legacy brands can become cool again with the right strategy.

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