Amex is using Olivia Rodrigo concerts to reach Gen Z in Europe
For many, the American Express card is seen as a symbol of success. But, as many European cardholders will know all too well, outside of major cities, Amex cards are often rejected by retailers.
But as the global credit card giant continues to make inroads into hesitant retailers, it is betting on attracting younger customers with the help of the world’s biggest pop stars.
Amex CEO Elizabeth Rutledge said Luck that Generation Z and millennials now own 68% of cards globally.
These young shoppers are drawn to lifestyle perks like entertainment, dining and travel. Amex is now catering to those needs with a big focus on entertainment.
“It’s experiencing the excitement of a Formula 1 race or having access to some exclusive dining experiences,” says Rutledge.
In the UK, Amex targets young Brits with partnerships at London festivals such as British Summer Time and All Points East. Cardholders can benefit from early access to tickets and on-site perks.
The group collaborated with Gen Z pop superstar Olivia Rodrigo last year on her successful sophomore album, Intestineand a sold-out world tour.
Amex hosted a special event in Berlin following Rodrigo’s concert there, where card members and other fans enjoyed an after-party with local artists and DJs. Fans also had access to dedicated checkout counters for limited-edition merchandise.
The fact that nearly 60% of Gen Zers identify as “super fans” of their favorite artists adds to the appeal of these perks, Rutledge says.
Additionally, Amex offers card members the opportunity to attend exclusive dining events, including new restaurant openings, including Great British Menu New position for winner Dan McGeorge Vetch at Liverpool.
The hope is that attracting a younger demographic to Amex will mean they’ll continue to use the card as their incomes increase in later years.
“They really represent huge potential lifetime value for us, as we can be with them throughout different life cycles as their needs grow and change.”
Amex’s strategy is similar in the USwhere the team recognized the shared need of Gen Z and millennials for experiences and began to tailor their rewards.
Marking a shift from its historical focus on points-based rewards and other perks, Amex continues to drive spending among members. Partnerships with certain products, like Disney+, allow users to benefit from discounted subscription packages. Shopping with other retailers, like RayBan, gives Amex customers the chance to get cash back.
Amex has tried a number of strategies in the past to attract younger customers, but the reality is that this is a learning process.
“Until about 10 to 15 years ago, we thought that a free card was the starting point for attracting younger customers to a franchise,” said Howard Grosfield, president of U.S. customer service at American Express. Luck in June.
“We knew that wasn’t the right strategy for Millennials and Gen Z. They like brand association. They like to travel and eat out, and they like the access and special experiences that come with our premium cards.”
Amex still expects younger shoppers to take better advantage of its traditional rewards system as they get older, but in the meantime, getting Gen Z and millennials hooked on experiences is proving to be a successful gateway to keeping their Amex cards.
However, Europe continues to be a barrier to the company’s growth.
European Invasion
Amex has long lagged behind in Europe compared to its presence in the U.S. Retailers and grocers, especially small ones, have been reluctant to accept the card in their stores due to high transaction fees. Instead, they have opted to accept Amex’s arch-rivals Visa and Mastercard.
The group is using third-party partnerships, including a deal with PayPal, to allow shoppers to use Amex cards on the continent.
“We are focused on expanding acceptance in key cities where our card members live, work and travel,” said Rutledge.
Amex’s rewards programs have long been the company’s USP over other credit card providers, and as Gen Z and millennials gravitate toward Buy Now, Pay Later companies like CashAmex is focusing on benefits that no-interest lenders can’t compete with.
Still, Amex’s fees continue to hamper the company’s ability to convince Europeans to spend on its cards, as well as the millions of Americans who travel to the continent each year.
In June, eBay forbidden using Amex on its website, citing “unacceptably high fees,” creates a risk that other retailers could follow suit in the ongoing battle over credit card fees. Customers can still use their Amex on eBay through PayPal.
“We are really disappointed that eBay has decided to stop accepting American Express cards,” said Rutledge.
“By doing so, I think they would limit their customers’ payment options and take away that service and security.”
Rutledge added that eBay accounts for just 0.2% of its total network volume.
