“Membership has its privileges” once spoke of the exclusivity of being an American Express cardholder. The days of never leaving home without it seem to be fading fast for one of the nation’s most iconic credit cards. As American Express experiences a changing of the guard with the retirement after thirty-seven years of Chief Executive Officer Kenneth Chenault, the new leader Stephen Squeri’s greatest and most urgent challenge will be attracting the millennials while holding on to their lucrative older clients.
American Express has long be thought of as the credit card of the privileged. That little green card in your pocket said a lot about the power that comes with a brand that speaks of wealth. Changes in the market and an inability to close deals with the likes of Costco hint to changes that are on the way. The changes that are on the horizon are coming from increased competition in the banking world. Credit card companies that once envied American Express have gone from emulating the company to competing with the company, and now those same companies are courting the established customers by offering better services and more perks.
The agent of change for all of this is the millennial. This new generation of consumers is more credit savvy and better financial informed than their elders. This group isn’t impressed by a brand. They look are more concerned with what companies will do for them, and what those companies will give them. For an additional article, hit bjtonline.com.
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JP Morgan’s Chase & Company’s Sapphire Reserve card is a case in point. They have courted millennials with large sign up bonuses,100,000 points, and a large number of attractive benefits. The success of their courtship is responsible for a recent move by serial entrepreneur, Chris Burch. A loyal card holder since 1979, Burch switched to Chase’s Sapphire Reserve card after an issue with customer service. Unable to get tables at several of New York’s high-end restaurants, Burch solicited the help of AMEX’s concierge. Unable to get an upgrade and then having his grievance addressed by a customer form letter Mr. Burch made a move that he is very satisfied with. Read his views on business related matters, click entrepreneur,com.
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