Amex Plat AF Increase to $550

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CarefulBuilder14
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Re: Amex Plat AF Increase to $550

Postby CarefulBuilder14 » Sat Mar 04, 2017 11:51 pm

yfan wrote:
CarefulBuilder14 wrote:I suspect a lot more Platinum customers use Uber than Amtrak.

I think it could be interesting if a card offered some sort of statement credit for environmentally-friendly mass transit, though. Amtrak, subway, commuter rail, bus, not sure about taxis/Uber...basically not gas or flights.

That would be really good. I do use transit quite often (to avoid traffic). I do know that Discover's "ground transportation" category covers public transit.

Freedom does, too (excluding Amtrak) but just for an occasional quarter at 5x/5%. I'm thinking something small but year-round that doesn't necessarily have an AF or require partner transfers for good value.

I think Amex does want to be in the wallet of every Millenial...who can pay the bill. Ads that have Tina Fey talking about her chin acne don't scream "exclusivity" to me. BCE for some, Platinum for others. People with good credit who don't ask for much can be very profitable, especially with the higher merchant fees Amex charges.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card


yfan
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Re: Amex Plat AF Increase to $550

Postby yfan » Sun Mar 05, 2017 1:59 am

CarefulBuilder14 wrote:I think Amex does want to be in the wallet of every Millenial...who can pay the bill. Ads that have Tina Fey talking about her chin acne don't scream "exclusivity" to me. BCE for some, Platinum for others. People with good credit who don't ask for much can be very profitable, especially with the higher merchant fees Amex charges.

I get the Tina Fay thing, and I like her, and I like the commercials. But believe me Tina Fay's audience is far wider than just millennials. One could also say that with the Tina Fay ads, Amex is trying to appeal to women, who control most of America's grocery budgets, which would be apt for a grocery focused card. Again though, appealing to a demographic doesn't mean they want everyone in that demographic (or even everyone who pays their bills in that demographic) to have their card.

It could also be that Amex believes it went a little too far with the everyday/everyman's card thing and is trying to do a course correction with the new Platinum AF and features. I think that it's a very real possibility that now that Amex has some "everyday" cards (by name), they are trying to refocus on the high end.

mountaindewvoltage
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Re: Amex Plat AF Increase to $550

Postby mountaindewvoltage » Sun Mar 05, 2017 2:56 am

yfan wrote:
CarefulBuilder14 wrote:I think Amex does want to be in the wallet of every Millenial...who can pay the bill. Ads that have Tina Fey talking about her chin acne don't scream "exclusivity" to me. BCE for some, Platinum for others. People with good credit who don't ask for much can be very profitable, especially with the higher merchant fees Amex charges.

I get the Tina Fay thing, and I like her, and I like the commercials. But believe me Tina Fay's audience is far wider than just millennials. One could also say that with the Tina Fay ads, Amex is trying to appeal to women, who control most of America's grocery budgets, which would be apt for a grocery focused card. Again though, appealing to a demographic doesn't mean they want everyone in that demographic (or even everyone who pays their bills in that demographic) to have their card.

It could also be that Amex believes it went a little too far with the everyday/everyman's card thing and is trying to do a course correction with the new Platinum AF and features. I think that it's a very real possibility that now that Amex has some "everyday" cards (by name), they are trying to refocus on the high end.


In my opinion I think AMEX is done with the exclusivity game. The fact that they brought out revolving credit cards and have lowered their standards for approval proves that the company wants more customers. In the old days you didn't get an AMEX unless you had excellent credit and were in the 1%, these days just about anyone with a 670+ can get an AMEX.

If AMEX goes back to the way they were before, they'll die a fast, painful death. Millennials just don't care about AMEX that much, they're debit card people, and in my opinion it's from graduating during the recession.

kdm31091
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Re: Amex Plat AF Increase to $550

Postby kdm31091 » Sun Mar 05, 2017 7:48 am

mountaindewvoltage wrote:If AMEX goes back to the way they were before, they'll die a fast, painful death. Millennials just don't care about AMEX that much, they're debit card people, and in my opinion it's from graduating during the recession.


Right, but this extends to every card issuer. I always say the general public really does not care for complicated reward programs (transferring points, activating categories, whatever). Most ordinary people who do not want to spend time thinking about cards just use one or maybe two cards for everything, and maybe redeem occasionally.

So I don't think just Amex will suffer for it, I think many issuers will. Most people just don't care much about card benefits. They get a card from their bank, whatever that happens to be, use it, and call it a day.

Some issuers are responding with simple, flat rate, no hassle cards -- Quicksilver, Freedom Unlimited, Double Cash, etc -- and in my opinion we will see more of these going forward and less of the 5% rotating/opt in type of thing, or even 1/2/3% cards where people have to monitor where they spend.

yfan
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Re: Amex Plat AF Increase to $550

Postby yfan » Sun Mar 05, 2017 9:31 am

mountaindewvoltage wrote:In my opinion I think AMEX is done with the exclusivity game. The fact that they brought out revolving credit cards and have lowered their standards for approval proves that the company wants more customers. In the old days you didn't get an AMEX unless you had excellent credit and were in the 1%, these days just about anyone with a 670+ can get an AMEX.

This is why I said course correction. An issuer can be involved in both the everyday game and exclusivity game, and Amex is doing that. But this move with the Platinum has made it clear to me that exclusivity is their focus. I would also argue that the human psyche at some level craves exclusivity (but in a twist, not exclusion), and as much as I'd like it, I don't think our generation is magically exempt from it. If we didn't, exclusive and grueling (and damn, expensive) fitness centers wouldn't be buzzing with business predominantly from millennial clientele, just to bring up one example.

But again, does the fact that fancy gyms and "ripped" fitness centers mainly cater to millennials mean that they want all millennials or that all millennials want to be there? No, in fact, most of us probably don't. And yet those businesses are still flourishing.

If AMEX goes back to the way they were before, they'll die a fast, painful death. Millennials just don't care about AMEX that much, they're debit card people, and in my opinion it's from graduating during the recession.

I have serious doubts about how much millennials are "debit card people" as a generation. All this stuff mainly arises from a study by the NYT last year showing that the percent of millennials with credit card debt is the lowest for any group of Americans under 35 since 1989. This doesn't mean that we as a generation are "debit card people." It could just mean more of us pay off our credit card balances in full every month - which, as you have yourself said, should make Amex (charge cards in particular) more appealing, not less so. It could also mean that, as you say, "graduating during the recession," millennials' credits were crap, which is now beginning to become better as 7 year marks clear from defaults during the recession or soon thereafter.

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CarefulBuilder14
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Re: Amex Plat AF Increase to $550

Postby CarefulBuilder14 » Sun Mar 05, 2017 10:17 am

Has Amex been running TV ads for the new Platinum perks? Or more ads in general lately?

I basically just watch public broadcasting and ad-free streaming nowadays.

Maybe they'd wait a few weeks until the launch got closer.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

Tubpbs
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Re: Amex Plat AF Increase to $550

Postby Tubpbs » Sun Mar 05, 2017 10:35 am

CarefulBuilder14 wrote:Has Amex been running TV ads for the new Platinum perks? Or more ads in general lately?

I basically just watch public broadcasting and ad-free streaming nowadays.

Maybe they'd wait a few weeks until the launch got closer.


I haven't seen anything. I watch some regular tv but the only Amex ads I see are the Tina Fey ones. I see other Cap1 ads (Quicksilver with Samuel L Jackson and Venture with Jennifer Garner) and Double Cash mostly with some stragler BoA and Chase ads.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

yfan
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Re: Amex Plat AF Increase to $550

Postby yfan » Sun Mar 05, 2017 10:40 am

Tubpbs wrote:
CarefulBuilder14 wrote:Has Amex been running TV ads for the new Platinum perks? Or more ads in general lately?

I basically just watch public broadcasting and ad-free streaming nowadays.

Maybe they'd wait a few weeks until the launch got closer.


I haven't seen anything. I watch some regular tv but the only Amex ads I see are the Tina Fey ones. I see other Cap1 ads (Quicksilver with Samuel L Jackson and Venture with Jennifer Garner) and Double Cash mostly with some stragler BoA and Chase ads.

I wouldn't expect many ads for the platinum in mass broadcast TV. You don't market exclusivity by casting too wide a net.

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CarefulBuilder14
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Re: Amex Plat AF Increase to $550

Postby CarefulBuilder14 » Sun Mar 05, 2017 10:49 am

kdm31091 wrote:Some issuers are responding with simple, flat rate, no hassle cards -- Quicksilver, Freedom Unlimited, Double Cash, etc -- and in my opinion we will see more of these going forward and less of the 5% rotating/opt in type of thing, or even 1/2/3% cards where people have to monitor where they spend.

I'm not sure what will happen there. Having bonus categories can make a base 1% card more attractive to customers who think the 3% category is a bigger part of the budget than it really is. 2% cards are becoming more common, but I'm not sure how profitable they are. As customers get 2% cards instead of 1.5%, it seems like it might be a race to the bottom...increasing market share but not profitability.

Notably, Amex seems to be avoiding that race by making the Schwab Investor card that launched 11 months ago 1.5% instead of 2%.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

mountaindewvoltage
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Re: Amex Plat AF Increase to $550

Postby mountaindewvoltage » Sun Mar 05, 2017 4:37 pm

yfan wrote:
mountaindewvoltage wrote:In my opinion I think AMEX is done with the exclusivity game. The fact that they brought out revolving credit cards and have lowered their standards for approval proves that the company wants more customers. In the old days you didn't get an AMEX unless you had excellent credit and were in the 1%, these days just about anyone with a 670+ can get an AMEX.

This is why I said course correction. An issuer can be involved in both the everyday game and exclusivity game, and Amex is doing that. But this move with the Platinum has made it clear to me that exclusivity is their focus. I would also argue that the human psyche at some level craves exclusivity (but in a twist, not exclusion), and as much as I'd like it, I don't think our generation is magically exempt from it. If we didn't, exclusive and grueling (and damn, expensive) fitness centers wouldn't be buzzing with business predominantly from millennial clientele, just to bring up one example.

But again, does the fact that fancy gyms and "ripped" fitness centers mainly cater to millennials mean that they want all millennials or that all millennials want to be there? No, in fact, most of us probably don't. And yet those businesses are still flourishing.

If AMEX goes back to the way they were before, they'll die a fast, painful death. Millennials just don't care about AMEX that much, they're debit card people, and in my opinion it's from graduating during the recession.

I have serious doubts about how much millennials are "debit card people" as a generation. All this stuff mainly arises from a study by the NYT last year showing that the percent of millennials with credit card debt is the lowest for any group of Americans under 35 since 1989. This doesn't mean that we as a generation are "debit card people." It could just mean more of us pay off our credit card balances in full every month - which, as you have yourself said, should make Amex (charge cards in particular) more appealing, not less so. It could also mean that, as you say, "graduating during the recession," millennials' credits were crap, which is now beginning to become better as 7 year marks clear from defaults during the recession or soon thereafter.


AMEX is trying to add more customers, not lose more. They've lost a ton of people from Fidelity, Jet Blue, and Costco losses. Millennials just don't care about cards... Comparing a plastic card to a gym (which millennials who actually want to be ripped and have a great experience won't choose Planet Fitness), is like comparing Apples to Oranges. People think about the gym they use because they care about the experience more... Most people don't care about credit cards except for people like us on here. Whenever I talk to a millennial about credit cards they just don't give a shit... Like KDM said, they use a card at their local bank (or credit union, which I find many millennials use) and that's it... They don't go out of their way to apply for an AMEX and use it for the perks.

I've read articles that say millennials are more debit card oriented than credit cards, so I don't agree with you. I do agree that charge cards should be more appealing, but again, millennials don't care enough to even know what a charge card is. Heck, even many baby boomers don't know what a charge card is.



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