American Express CEO Steve Squeri told CNBC's Jim Cramer on Tuesday how the company attracted more Millennial and Gen Z customers, saying the cohort made up 60% of new card acquisitions during the last quarter.
Squeri said American Express realized that attracting younger clientele was a "key thing" for the company, so it was important to offer cards with a high enough value proposition for that group.
Younger card holders create a greater "lifetime value" than older ones, as they will continue to use their American Express cards as they age, he added.
"We used to go after them with a no-fee card, but a no-fee card didn't have a lot of benefits—that's why you pay no fee for it," Squeri said of Millennials and Gen Z.
The younger customer base is also growing because more merchants accept American Express cards than in previous years, Squeri added.
Persons:
Steve Squeri, CNBC's Jim Cramer, Squeri, Millennials, who's, Amex
Organizations:
American Express