How Amex is Acquiring Millennial and Gen Z Customers

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American Express (Amex) reported millennial and Gen Z customers made up 60% of new card acquisitions last quarter.

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Younger cardholders are Amex's most valuable customer segment because they offer a higher lifetime value than older customers.

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In the past, Amex employed a “low and grow” strategy to attract younger customers. They would target millennials and Gen Z with no-card fees, but those cards didn’t offer many benefits.

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Soon after, Amex shifted its strategy to provide a better value proposition since they realized millennials and Gen Z are more financially savvy than previous generations. Before selecting, younger customers will gladly research the best credit cards based on rewards, sign-up bonuses, fees, interest rates, and more.

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Amex’s new cards targeted at younger customers provide a lot of bang for their buck – spending $695 for the annual fee on the platinum card might get them $1,400 in value.

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Amex’s younger customer base is also growing because more merchants now accept Amex than in previous years, per CNBC.

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After years of hard work and many strategy changes, Amex is starting to reap the fruits of its labor.