You’re an amazingly intelligent lot, so I’m curious as to what you think, dear readers.
For quite a few years I worked on American Express, doing creative and training and helping run the account around the world.
They had a unique positioning – expressed in the famous letter that began “Quite frankly, the Americasn Express Card is not for everyone …”
I sometimes think that, not the famous Wall Street Journal Letter, must have been the most profitable letter ever written.
But here’s my question
Now American Express are offering Cardmembers pre-sale tickets on The Monster Ball Tour starring Lady Gaga.
Does that fit in with their positioning? Yes or no?
No.
It's like when Oxford and Cambridge opened up their doors to everyone, no matter what their ability.
To me the reputation of both of those universities is now tarnished.
I'm not a student of either, but I don't think as highly of them as I did.
Thanks for asking the right question. It is so clear that the answer is No.
Well Drayton… it pretty much typifies what a dinosaur American Express is.
I suggest that they will be out of business in five years if they don't innovate and change their business model and pricing
keep your powder dry,
Warren
Hmm, Lady GaGa is definitely NOT for everyone. So, maybe it does go with their positioning. You (the reader) are not always the ones in the exclusive club. Sometimes you're the one on the outside looking in.
Hmmm… I guess it depends on who they're sending the offer to.
If American Express are only mailing the offer to customers who would find these tickets relevant, then it's forgivable – especially if this segment feels special or privileged as a result.
On the other hand, if all customers are receiving the offer, I reckon it'll do more harm than good.
I agree with George.
When I was a kid, Amex had ads on TV. I can't remember seeing any in the last 10 years.
(maybe I'm just too much of a pleb to be exposed to their advertising)
If they start tailoring something towards the younger end of their database (and only send this offer to those people), they're creating unique value and re-building their brand for a new generation.
Steve
I can’t speak for Britain, but here in America Amex is still all over TV. The thing that’s different from the days when there was one iconic brand for Amex is that Amex is now several brands. The old green card is rarely marketed and when it is, it is positioned to be more widely available than it used to be. There is now an endless parade of Amex cards, Gold, Platinum, Small Business, Points Awards, and even Amex cards that have payment plans like a Visa card would.
So to answer the question, yes the offer is in keeping with their brand since their positioning has now splintered into several cards and the offer is presumably (I know, I’m assuming) only aimed at one segment of their market.
George & Steve are right, I think–it depends on whether they're segmenting their list. Even so, it smells a little funny.
As a credit card holder of the seasoned variety, I have no clue who Lady Gaga is, nor do I give a flying fig–so ROI for sending such to my set would be negative.
But even if are trying to appeal to the younger, hipper age group, is this a wise move? Such a premium would NOT coincide with my earlier impression (carefully orchestrated through years of branding) that American Express is a cut above the “rest” of the credit rabble.
It's a shame, really, if they're chucking their USP in an attempt to “re-brand” without thinking about the consequences.
“Such a premium would NOT coincide with my earlier impression (carefully orchestrated through years of branding) that American Express is a cut above the “rest” of the credit rabble.”
I agree, Apryl.
However, I wonder if, for younger people, they simply don't have that branding.
(here in the UK)
And, if they tried to re-establish that “cut above” image, would it still be an appealing one?
Steve Frohrip's comment comment that the card is “positioned to be more widely available” might be evidence that they've seen their market base disappear and are now forced to try to re-invent themselves.
I'll be interested to read Drayton's answer to his own question.
I've got the feeling he'll tell me I'm 100% wrong.
Steve
Absolutely not. The Lady is a Tramp … is the card becoming a tramp too, especially since it is now not welcomed at hundreds of places? In troubled times (and these most definitely are) you do what you have to do to chase the elusive dollar, I guess. Fancy a round up of Ga-Ga anyone? Thought not…
No.
Back to my Oxford and Cambridge analogy, it may attract new customers but will that group want to pay a charge for a card when there's plenty around for 'free'?
Unless they plan on dropping the charge and copying the rest.
Whatever they plan on doing, it doesn't look good to me: It seems like taking a step down…
…or being forced to.
Okay, I forgot to explain the Oxford and Cambridge part.
My point is, it's possible they may have new customers on board, but they probably won't be able to claim to be an exclusive club any more.
Hope all that drivel makes sense.
I didn't know Mrs Thatcher was still touring.
Great insight, Steve. C'mon, Drayton! Let's hear your 2 cents…
Well according to the writing on their wall “it is not for everyone”
I will say yes it fits their positioning.
It fits since those who are ga-ga will go just that.
And those who don't give a …. will
will go to a different drummer.
So it seems to fit the profile.
Well according to the writing on their wall “it is not for everyone”
I will say yes it fits their positioning.
It fits since those who are ga-ga will go just that.
And those who don't give a …. will
will go to a different drummer.
So it seems to fit the profile.
Several years ago, people I knew who used AE did so for 1 of 2 reasons.
(1) their company made them, or
(2) if for personal use, they were credit card snobs who believed that AE made them a cut-above.
I don't know anyone today who actually uses AE. Maybe cheap credit won the day over 'exclusive' and expensive credit / charges.
Since Apryl insists, here's what I think.
1. Amex built their business on an amazingly strong proposition – “Quite frankly, the American Express card is not for everyone”. This mandated that everything they did should not just be different, but superior.
2. Lady Gaga unquestionably appeals to some, but are they good Cardmember prospects or high spending current cardmembers? Would you apply the word “superior” to her?
3. If you think she does appeal to some, only talk to them, not to the whole world as they have; in any case I seriously doubt they know enough about people on their database to target those individuals. Yes, they are perhaps younger than average – but they will have certain attitudes as well. Your database won't isolate those people
4. If using Lady Gaga signals that Amex understands and wants the kind of people who like her, they are moving their positioning down market where everyone else is. As I have often observed, if you're like everyone else, why should I choose you?
5. Their policy of having many line extensions is, if packaged goods experience is any guide, diluting the strength of their positioning and will dilute their profits.
6. Apart from your product or service itself, positioning is your greatest strength. Be careful about the company you keep.
Presumably, if Amex is after a younger funkier clientele it will be improvising some imaginative incentives to recruit them. No more ‘you’ pay us a fat fee for the pleasure of having an Amex card or a 48% APR interest rate for your BA Amex card. No, no. The card could be supplied in a handy wallet containing a small mirror and a plastic bag of cocaine. ‘Hey man, that’ll do nicely’.
After a couple of snorts the rubber clad stick insect Ms GaGa might seem more appealing.
Thanks for asking the right question. It is so clear that the answer is No.
That’s a tough one. In the not for everyone positioning, flat out NO is the answer. But their latest messaging is membership has its rewards, which would make this a yes.
Maybe we should expect from AmEx to launch the NINJA* Card one of these days.
*(Of course, as for housing bubble’s infamous NINJA loans, the acronym stands for ‘No Income, No Job or Assets’.)