CASE STUDY: Grey exceeds sales targets for American Express in Malaysia

Background

Malaysia is one of the fastest growing countries in the ASEAN region and has a relatively young population of over 28 million. The government's consistent push towards a cashless society reflected a growing eligible and affluent card segment. 

This resulted in an extremely competitive card industry with both local and foreign banks aggressively marketing their card facilities for a greater market share. Even though the market has not reached saturation, banks are consistently developing new card products targeted specifically to this mass affluent segment. 

Aim

The American Express charge and corporate cards has always been a stronghold of the brand with high top of mind recall and an association with a lavish lifestyle. Recognising that there is a huge potential in the mass affluent segment, American Express together with Maybank launched the first American Express Gold Credit Card in Malaysia that focused on meeting the everyday needs of the segment and creating value by offering relevant privileges and benefits.

The objective of the American Express Gold Credit Card is to enhance and strengthen the current American Express Centurion product line and to introduce an American Express Centurion product line that is 'marketable' at Maybank's branches. The business goals were to acquire 150,000 new card applications in the first year of the launch as well as to achieve an activation rate of 70 per cent.

Execution

A holistic campaign concept was developed with one single proposition in mind: 'Life is more rewarding with the American Express Gold Credit Card'. It sends out a simple yet valuable message which demonstrates how consumers can get more financial freedom with the lowest finance charge of 9 per cent p.a. while competitors are at 13.5 per cent p.a. and five times the membership rewards out of everyday spending.

The strategy is to position the American Express Gold Credit Card as the most rewarding credit card, supported with differentiated key value propositions which are the best and first in class in the market.

A 360-degree communication campaign strategy was launched to aggressively promote and market the American Express Gold Credit Card in Malaysia. Beyond the use of traditional channels, new and cost efficient channels like online advertising was utilised for the first time to build awareness of the brand new American Express Gold Credit Card. Online executions included forum seeding and Facebook advertising.

Results

The American Express Gold Credit Card became the best selling product for the entire Maybank's card portfolio in 2009, achieving 133 per cent of sales target. It also constituted 58 per cent of total new cards acquired in 2009 for American Express portfolio and 31 per cent of Maybank Visa and MasterCard acquisitions.

Card activation reached 84 per cent within the first 60 days after introduction with a target set at 70 per cent for the entire campaign period. 

Billings performed much better than expected, despite the economic crunch. Within six months of launch, the American Express Gold Credit Card billings rose to nearly 10 per cent of total portfolio billings. The average spend per card was 41 per cent higher than the market average and 31 per cent higher than the average American Express portfolio in just six months after the launch.

Credits

Client American Express
Agency Grey Group Kuala Lumpur