American Express CEO Discusses Strategy to Attract Millennial and Gen Z Customers

American Express CEO, Steve Squeri, outlined the company's successful strategy to attract more millennial and Generation Z customers during an interview with CNBC's Jim Cramer on Tuesday. Squeri revealed that the younger demographic accounted for a significant 60% of new card acquisitions in the last quarter.

Squeri emphasized the importance of catering to the younger clientele, stating that American Express focused on offering cards with a high value proposition tailored to this group. He highlighted the long-term value of younger cardholders, as they are expected to continue using their American Express cards as they grow older.

"We used to go after them with a no-fee card, but a no-fee card didn't have a lot of benefits — that's why you pay no fee for it," Squeri explained. "When you look at a platinum cardholder who's spending, you know, $695 and maybe getting $1,400 in value, it's a no-brainer for them."

Increased Acceptance and Transaction Trends

Squeri also pointed out that the expanding acceptance of American Express cards by merchants has contributed to the growth of their younger customer base. He noted that cardholders under 35 engaged in 70% more transactions at restaurants compared to other age groups.

"When you think about someone who's acquired the card in the last six or seven years, Amex is accepted everywhere," Squeri stated. "And so they're using the card now for everyday purchases."

The insights shared by Squeri offer valuable perspectives into American Express's targeted approach to attract and retain younger demographics, reflecting the company's forward-looking strategies to secure its position in the market.