Marketing Strategy of American Express Bank: Analysis

Marketing Strategy of American Express Bank

Segmentation, Targeting, and Positioning

Segmentation

STP begins with segmentation, in which organisations break their marketing strategies into distinct categories depending on factors such as those listed below.

1. Demographics Segmentation
2. Geographical Segmentation
3. Location-Based Segmentation

It identifies the group of buyers based on differences in their desires or requirements. From the beginning, the products of American Express bank are segmented based on the customers belonging to similar geographical areas. Besides geography, psychographics and demographics are also considered.

Targeting is a marketing technique that separates a large market into smaller groups to focus on a specific portion of that market. It identifies and caters to a certain client segment based on its unique characteristics. The majority of American Express’s target audience is individuals with higher incomes or big business owners.

Positioning shows where your product and goods stand with other company products that are comparable to yours. American Express presents itself as a bank that offers simplicity, convenience, and security. Because their clients are seen as wealthy, they employ a premium positioning technique.

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Digital Marketing Strategy of American Express Bank

Below is a list of components that are employed when formulating the marketing strategy of American Express Bank:

Social Media Marketing

As part of American Express’s marketing strategy, the company is active on all its social media pages, all the pages are well maintained and also have a nice amount of audience.

LinkedIn is American Express’s most popular social media network, With over 1.6 million followers. It attracts new clients and retains existing ones, they mostly offer information about credit cards, intriguing promotions, and so on. So do their other social media networks including LinkedIn, Twitter, YouTube, Facebook, and Instagram.

SEO Strategies

As per SEO ranking, it is said that the number of keywords (queries used to search information online) below 500 is bad, above 1,000 is good, and 10,000+ is amazing. As we can see, the American Express Bank has 1 Million+ organic keywords (Keywords driving non-paid search traffic) and it’s out of the box. That means the digital marketing of America Express Bank is gaining an outstanding number of insights.

Also, the traffic (number of visits to a website) per month is around 15million+ which is unbelievable. Hence, American Express Bank has outstanding SEO strategies while working hard enough to keep the brand soaring in the Google organic SERP results.

People across the country, especially the ones residing in Navi Mumbai and Faridabad want to explore SEO (an important component of digital marketing). This has led them to search for information using the keywords, ‘digital marketing courses in navi mumbai’ and ‘digital marketing courses in south faridabad’.

Influencer Marketing

Keeping in line with American Express’s marketing strategy, the company partnered with renowned actor and filmmaker Farhan Akhtar to launch a new campaign spotlighting its platinum charge card. The ‘Metal Makes It Possible’ campaign aimed to convey the card’s premium status and its role in empowering cardholders to live life to the fullest.

In addition to the campaign, American Express appointed Farhan Akhtar as the brand ambassador for its Platinum Club. This strategic move leveraged Akhtar’s influence to promote the card and its exclusive benefits, underscoring the ‘Membership Changes Everything’ tagline.

Mobile Apps

The company has a mobile app called AMEX India. It helps its users and consumers in the online handling of credit cards and other activities. The app features a simple and familiar interface that enhances user experience, and it is also fully secured.

Content Marketing Strategies

In line with the American Express digital marketing strategy, the content element focuses on lead generation, marketing publication, and the distribution of relevant content to the target audience. In comparison to their competition, American Express does have a very unique content marketing strategy since they are providing more campaigns where the content is directly linked to the people of society and also to demonstrate their quality and how strong their bank is. Several blogs highlight their future vision.

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Marketing and Advertising Campaigns Designed by American Express’s Marketing Strategy

1. #Greenation

The #greenation project was launched by American Express in partnership with the Times of India, three years ago. Over the period, they help to maintain and replenish vertical gardens across the pillars in Gurugram. These projects helped and supported to increase the greenery in the environment. This American Express marketing campaign became popular among the general public and the quality of air is also improving with the rise of awareness among the community on the need to preserve the environment. #investInOurPlanet.

2. #MakeMyTrip

Plan your trip with #MakeMyTrip use your American Express Card, and enjoy up to 15% off. The campaign was launched on Nov 27 2021 through the collaboration of Make My Trip and American Express. This American Express’s marketing campaign’s validity was till 2021 Dec 25. According to records, customers embraced this offer, leading to an increase in the company’s profit.

3. #BackingWomanArtisans

The campaign was launched for International Women’s Day 2022 and featured a partnership with Dastkar Delhi. After the huge pandemic wave, the small-scale industries were badly affected. To draw attention to this, American Express and Dastkar Delhi collaborated to help and bring inspiring stories to these craftswomen through #hercraft. This American Expresses marketing campaign was very successful; many women’s stories were out in the air, which inspired backward women to come forward for their benefit.

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The Marketing Strategy of American Express That Failed

In 2017, American Express launched a high-profile campaign designed to showcase a luxurious lifestyle and elevate the brand’s image. This American Express marketing campaign aimed to highlight exclusive experiences and premium services offered by the company.

Issue: American Express faced criticism for its portrayal of a luxury lifestyle, which was perceived as out of touch with the average consumer.

Backlash: The backlash included negative media coverage and customer feedback.

Response: American Express responded by reassessing its marketing approach and focusing on campaigns that resonate with a broader audience, such as ‘Shop Small,’ which emphasises community support and inclusivity.

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Top Competitors

American Express is not the only bank that dominates this industry. Many other players can have a huge impact on the formulation of the marketing strategy of American Express Bank:

• Visa: A global payments technology company known for its extensive network and wide acceptance, offering a range of credit, debit, and prepaid cards.
• Mastercard: A leading financial services corporation providing a variety of payment solutions, known for its innovative technology and global reach.
• Chase: A major American bank offering a wide range of credit cards with attractive rewards and benefits, focusing on premium and travel segments.
• Citi: Citibank provides a variety of credit card options, known for its extensive rewards programs and customer service.
• Discover: A direct banking and payment services company, Discover offers credit cards known for their cashback rewards and customer-friendly policies.