Special Report: Strategy’s Top Clients of the Year: Top Client, Financial Services: Amex fills generation gap

For the fourth year, Strategy presents its Top Clients report, an annual feature devoted to recognizing the accomplishments of leading clients in the Canadian marketing community.

This year, as before, Strategy’s editorial staff reviewed the year’s news in an effort to identify those clients that stand out most clearly as exemplary marketers.

These selections are based on what we consider the fundamental tenets of good marketing: sales results, attention to brand development, innovation and productive relationships with suppliers.

Measured against these criteria, Levi Strauss & Company (Canada) has unquestionably earned the distinction of being named Strategy’s 1998 Client of the Year.

It’s not your father’s American Express card anymore.

That, at least, was the message that Amex Bank of Canada set out to convey when it launched its ‘Blue’ Credit Card with Cash Back at the start of this year.

With its music video-style advertising (by Ogilvy & Mather), the Blue card is meant to appeal to a target that credit card providers have traditionally overlooked: the 25-35 age group.

‘There was really a gap,’ says Susan Austin, director of advertising and loyalty for Markham, Ont.-based Amex.

The recognition of this gap – and of others as well – has helped fuel significant growth in Amex’s product lineup. In the past two years, the company has launched eight new products, including its successful Amex Air Miles card, bringing its card roster to 14.

‘We now have products that are suited to much more diverse groups of people,’ says Austin.

That’s quite a switch from the situation just a few years ago, when Amex offered only a simple – but highly-regarded – charge card.

The traditional American Express card does not allow holders to carry a credit balance (they are required to pay off all that they owe each month). Its perception has long been as a card for the affluent. Since entering the credit card market, however, Amex has aggressively rolled out product after product – each one targeting a certain niche segment of the population – in an effort to render the brand more wide-ranging and accessible.

Although Austin won’t reveal just how many young Canadians have signed up for the Blue credit card, she says that after six months it has already exceeded year-end expectations.

Prior to Blue, there wasn’t really a card product that specifically targeted adults 25-35, Austin says. Yet it’s a market that holds great potential attraction for credit card companies. This group – what Amex refers to as the ‘blue’ generation – desires financial independence. While conscious of the need not to over-extend their finances, they’re potentially big consumers, in need of items such as furnishings for their first real home, and clothes for their first real job.

Amex didn’t just arrive at this idea out of the blue. Austin says the company has been investing heavily in research over the past two years, and has drawn upon the findings in its efforts to develop innovative new offerings.

Besides offering more products with specific value propositions to target particular segments, Amex also plans to take a closer look at its level of service, in order to distinguish itself further from other credit card companies.

‘We want to make sure that we are second to none in terms of the service we offer to our customers,’ Austin says. ‘And that means every contact with a customer – from a call to customer service to a point-of-sale use of the card – will be fine-tuned to ensure that Amex comes out on top.’

Also in this report:

– Top Client Overall: Levi Strauss develops intimate relationships p.21

– Top Client, Entertainment: Playdium partners to grow entertainment pie p.22

– Top Client, Retail: Canadian Tire revs up power brands p.24

– Top Client, Business Services: UPS pushes overnight delivery envelope p.25

– Top Client, Alcoholic Beverages: Labatt builds equity Out of the Blue p.26

– Top Client, Telecommunications: Bell makes 10-cent comeback p.27

– Top Client, Media: Canoe proves ad-worth on-line vessel p.28

– Top Client, Transportation: Air Canada hones in on business target p.28

– Top Client, Children’s Products: Binney & Smith boosts iQ: Maker of Crayola spins off tween-targeted line p.29