Reilly Newman | Many are unaware that American Express has been using one of the greatest marketing tactics for the last 5 decades — and one that has cost them virtually nothing but has been a huge payoff for the brand.
If you’re an Amex member, you’ve seen on your card “Member Since…” followed by the date you first became an Amex member. This simple line reads on one side of the credit card and takes up almost no space. It uses space wisely, yet costs Amex almost $0 to do it. Although it may be simple, it is marketing magic that builds brand and increases business.
The brand installed the “Member Since” line over 50 years ago, and it has proven very fruitful for the credit card company. The magic is in the retention it creates with the Amex member by showing the relationship they have started and even maintained over the years. The term “member” takes on more depth and value by highlighting the year they started with Amex to not only celebrate but also add more to the relationship every year that passes.
You see, there are several psychological factors at play here that Amex is benefiting from:
Consistency Bias
We humans love being consistent with past behaviors. Even the thought of being a “member” is an element of our identity that drives behavior. If we are labeled as a member, that means we should act like one. So, if we are reminded of our membership and the years we have been acting this way, then we will feel the urge to continue with this behavior as a member.
Status Quo Bias
Similar to being consistent, we also will maintain the status quo and not change from it. Unless we are urged through a major need or want, we typically will default to maintain the status quo. In this case, when reminded of our years of membership, we will be more inclined not to change from this proven status quo. A change would entail risk and staying with what is familiar and trusted is a much better option for us.
Sunk Cost Fallacy
Whether it’s our first anniversary of being a member or our 30th anniversary, we see the energy, time, and trust we have paid to being a member. Over time, we see how we are more and more invested in the relationship of being a member and when we are reminded we value it more since the investment increases with time.
The power of Amex leveraging these psychological biases has not only differentiated the brand by emphasizing their market position of memberships, but it has led to less churn in members. The amazing thing is that by introducing this simple solution, they invested very little but have reaped the rewards for more than half a century.
Although this simple line addition on the cards doesn’t have a direct “return on investment” it has brought many advantages to both the business and brand. This is the “magic” of creative thinking and how brand brings immense value even though the solution may be small. It’s not about grandiose efforts that are of blood and sweat, but actually can be something that no other competitor is doing. It can even be small and take very little investment.
Brand is the ultimate lever that can move mountains with very little effort as long as the strategy and creativity align.
