How Amex is Acquiring Millennial and Gen Z Customers

American Express is seeing the benefits of new cards and increased marketing investments as it adds new millennial and Gen Z customers.
May 5, 2024
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three hikers overlooking a beautiful view - aspirational Amex ad

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

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

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.

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.

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.

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

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

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