American Express Membership Rewards - UK Platinum Reaches Dilution High

http://home3.americanexpress.com/uk/Personal/Cards/benefits/PC_Ben_AmPlatinumInfo.asp

Thats right, its no longer invite only. The benefits are now up there for all to see too.

Interesting note for those asking before on UK Card lounge access:-

Northwest
EuroStar
Continental
British Midland

Get ready to see even more Platinum cards out and about in the UK http://www.flyertalk.com/forum/smile.gif

Thanks,
Richard

I'm pretty sure they were giving them away to anybody that phoned up and met the requirements anyway.

Maybe they'll let a few more of us move up a level now.....or maybe not.

American Express has been happily issuing Platinum cards to almost anyone with a reasonably good credit and Amex history for years.

Richard, I know you value Centurion, but the fact that Amex continues to dilute its premium products suggest to me that the corporate mindset is such that many Centurion invites go to people who are nowhere near the qualification levels we often read about on this board.

Next Lizzy Gardiner will have a dress made from them http://www.flyertalk.com/forum/biggrin.gif

Seriously though, I really couldnt care less how many different coloured pieces of plastic there are or aren't around...

dnw

[This message has been edited by dnw (edited 01-15-2003).]

Amex used to have a three level range of products (Green/Gold/Platinum) and simply extended the range to four levels (Green/Gold/Platinum/Centurion).

It was easier for Amex to create a new product level above Platinum (and making Platinum available for all), than creating a new level between Gold and Platinum.

The Centurion is nothing else als what the Platinum card used to be 15 years ago.

So, how long until Centurion is also devalued to Platinum like status... 1 year?

As soon as they offer me one.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by eMailman:
As soon as they offer me one.</font>

http://www.flyertalk.com/forum/biggrin.gif

Oddly enough, I received a questionnaire about my views on the Plat card yesterday.

For 1,000 MR points, I was happy to tell them that most of their services got a 2 or 3 on a scale of 1-10 where 1 = poor and 10 = excellent, that my Plat expenditure had declined in the last year while my all-card expenditure had increased, that I didn't like services withdrawn (e.g. Virgin lounge access) at the same time as fee increases.

Now will I have to contact Customer Services to ensure that the 1,000 MR points are awarded - like I had to some months after the BA Amex member-get-member exercise http://www.flyertalk.com/forum/frown.gif?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RichardMannion:
Get ready to see even more Platinum cards out and about in the UK</font>

And your point? As if it is a "faux pas" to carry a Platinum card in the U.K.?

Let us remind ourselves that Amex's products are nothing more than pieces of plastic backed by a large marketing machine. Their main purpose is to hype the product, but at the same time be so secretive about it as to make it more ever so desireable to most who hear about it.

[This message has been edited by DelrayChris (edited 01-16-2003).]

In fairness to RM, I think the point he is making is that there are already too many Platinum cards in the UK (which everyone in this forum seems to agree on) for the product to have the exclusivity it attempts to convey.

He is just pointing out that this is getting worse because Amex has decided to 'push' the product.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by LondonElite:
...for the product to have the exclusivity it attempts to convey.</font>

Amex is simply trying to make money by launching products that they advertise as "exclusive", when in fact, they are not (e.g., Centurion, Platinum).

The only way to have a truely exclusive product is to make, and adhere to STIFF application requirements.

Everyone knows Amex's supposed entry requirements are loose, and are different for every customer. This is all part of their marketing.

If they wanted the Centurion, for example, to be an exclusive product, they would follow a checklist similiar to this one:

1. [ ] $500,000 USD in VERIFIED yearly income. This would be verified each year of card membership.

2. [ ] $150,000 USD in yearly spending on an existing American Express Charge card. Only the PRIMARY cardholder, and his/her spouse's card count towards this requirement (This is to stop members from issuing cards to their friends and entire family in an effort to increase spend on an account).

3. [ ] After obtaining the Centurion Card, customer MUST CONTINUE TO MAINTAIN a yearly spend of at least $150,000 USD, per rules in number 2.

These example requirements would make the card more exclusive, by definition, and would allow Amex to offer top notch services, as the majority of current Centurion Card holders cannot meet these requirements on a yearly basis.

[This message has been edited by DelrayChris (edited 01-16-2003).]

Frankly, Amex couldn't give a stuff about your personal income (except as a measure of your ability to repay debt incurred). A track record of big spending (which, let's remember, is where Amex earns its money) should be the key criteria.

Does it matter if I'm an IT guy paid $25k a year if I use my Amex to procure $200k of equipment for corporate use? I'll still be far more profitable than the guy earning $500K per year but only charging $50K to his Amex.

The argument is the same as always -- if the benefits that you'd use offer value-for-money versus alternatives, the card is right for you. If your level of spending and credit-worthiness make the relationship low-risk and profitable for Amex, the card is right for them, too.

I think the requirement of $150K in annual spending as well as a good credit report/score is pretty stiff requirments. It "weeds out" alot of folks. Plus, the $2500 annual fee on top of that.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by MatthewClement:
Frankly, Amex couldn't give a stuff about your personal income</font>

I understand this, however, I was mentioning a way for Amex to have a truly exclusive product.

The point of my post was to add to the discussion of the exclusivity American Express attempts to convey to consumers.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RichardMannion:
[URL=http://home3.americanexpress.com/uk/Personal/Cards/benefits/PC_Ben_AmPlatinumInfo.asp]http://home3.americanexpress.com/uk/Personal/Cards/benefits/PC_Ben_AmPlatinumInfo.asp[ /URL]

Thats right, its no longer invite only. The benefits are now up there for all to see too.</font>

I'm confused as to why you're saying it's not invite only ... there's no link to apply on the site that I saw, unlike the Gold and Green Card. All it says is that "To learn more about how you could become one of the exclusive circle of Platinum Cardmembers, please call 0800 085 77 44."

Platinum Membership hasn't been by invitation only for a while ... however, there have been criteria (here in the US when I got mine back in 1996 or so it was $5,000/year in spending or having an AMEX charge card for 10 years), and you could call and ask if you met the criteria. Looks like their saying "you can call and ask what the criteria are ..." ...

the only criteria in the uk for some time now has been £30k income.

they've had the quote to call a number to see how you can join for a while....and near enough everyone I know that called it got a card. You didn't even need to be an existing AMEX customer.

Seeing as they now have Mr Lee advertsing the Platinum Concierge Service (or whatever it is called) on TV commercials, there is no way this product can be called exclusive.

But then again nor is the Centurion card. A colleague of mine who had a French Green card for 18 months, phoned and got one issued without any problems. He spent on avergage less that $5000 per month and has less than a $100k income. Oh and he is only preapproved to spend around GBP 5000 per month.

But is the point to be exclusive or to offer different tiers of charges and benefits?

I don't recall AMEX every speaking about income or spend levels - that is what we engage in on this board. I think it is us who try and create some exclusivity and cache around what is essentially a commodity.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Merry:
But is the point to be exclusive or to offer different tiers of charges and benefits?</font>

From a company/marketing perspective? Yes.

[This message has been edited by DelrayChris (edited 01-16-2003).]

FYI they give 1500 MR points for the PLatinum questionnaire in FRance - just received it yesterday.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Merry:
But is the point to be exclusive or to offer different tiers of charges and benefits?</font>

Surely the point is to make a lot of really pathetic people feel exclusive as a result of the different tiers of charges and benefits http://www.flyertalk.com/forum/wink.gif http://www.flyertalk.com/forum/wink.gif

dnw

[This message has been edited by dnw (edited 01-18-2003).]

Well... we could make these threads more informative and interesting talking about product benefits only, and not discussing all the time if people are pathetic or not using them.

If we really want to discuss all pathetic behaviour here , we could also have a look at people :

- Booking useless flights in order to achieve a higher frequent flyer status and get "exclusive" benefits (free drinks in overcrowed lounges, boarding 2 minutes before all other passengers, a set of plastic luggage tags, ...)

- Feeling exclusive using cards like Lufthansa HON, Air France Club 2000, etc.

(open list...)

(deleted)

[This message has been edited by Roger (edited 01-19-2003).]

I've have stopped believing in the exclusivity of AMEX cards years ago.

I applied for the ordinary green Amex card in 1992. I didn't charge a lot to it, maybe CHF 2000 a year. After about two years of membership I got an invitation for the gold card. I was still a student, working part time and didn't make even half of their official income requirement of CHF 120'000/year.

They didn't ask about my income, employer, etc. in the invitation. I just had to sign and return it. Period. I got the gold card about two weeks later, no questions asked.

One or two years later (still studying and not making a lot of money) I received a similar 'no questions asked' invitation for the platinum card. I didn't accept the invitation because I had better things to do with my money than shelling out CHF 1000 a year for this card. But I'm pretty sure that they'd given me one. http://www.flyertalk.com/forum/smile.gif

andy

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by andyZRH:
I've have stopped believing in the exclusivity of AMEX cards years ago...
</font>

That's right, Andy.
Issuing credit cards is a business, and it must be profitable. Amex concentrates on a customer base that is expecting more from a card than the standard "paying for goods and services" function, and is willing to pay for it.

With a few hundred US$/EUR/CHF annual fee, you can't run a profitable business until the customer base is wide enough to cover the costs. Even the Centurion will be issued to thousands of customers : to pay for 10 Customer Service reps (+ office etc.) you need at least the fees of 500 main card accounts...

If you think only of exclusivity, let's consider that about 1% of people use an Amex card in Germany, and maybe 10% of these a Platinum card. But exclusivity is not the main question to answer before applying (or beeing invited) for a Gold/Plat/Cent card !

By making applicants satisfy some requirements the card may technically be called exclusive under a standard definition of the word. But then so would nearly all credit cards as they all have credit criteria which excludes someone. Even the sub sub sub prime credit card lending market presumably asks for an address to send statements to which would "exclude" the homeless.

To me the main driver for reducing the number of people with the card (and so "appearing" to look more exclusive) is the fee. I pay it but I am stupid to do so from a financial perspective. Sure the travel insurance is good but not that good.

[This message has been edited by Kovich (edited 01-30-2003).]

So far as I'm concerned, people should be paying for the benefits and not exclusivity.

The UK Platinum is well worth the money and the only thing that makes the Centurion worth the £400 more is SPG Platinum. If you're SPG Platinum anyway, what's the point?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Moriarty:
So far as I'm concerned, people should be paying for the benefits and not exclusivity.

The UK Platinum is well worth the money and the only thing that makes the Centurion worth the £400 more is SPG Platinum. If you're SPG Platinum anyway, what's the point?</font>

What about the other Prestige Priority Pass membership valued at $399, what about the enhanced insurance cover over Pt, what about the full N-USA CAr insurance compared to the partial Pt cover?

Shall I continue?

Thanks,
Richard

This is just what we can expect from a credit card issuer that promises the world and then provides the sort of service you could get without paying a fee from many UK visa and mcard issuers.

It's not as though the cards even turn heads any more: "Centurion Card - so what". Their qualifying criteria are more often than not false and, I would suspect, these falsities are propagated by AmEx themselves rather than the press. Who believes that they won't hand out a card to someone who doesn't meet their "stringent requirements" when that individual is willing to part with in excess of £500 a year for little in return?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by RichardMannion:
What about the other Prestige Priority Pass membership valued at $399, what about the enhanced insurance cover over Pt, what about the full N-USA CAr insurance compared to the partial Pt cover?</font>

Okay fair enough about the PP - I overlooked that because I've only ever used mine the once having had lounge access anyway. The enhanced insurance can be had for about £100 over the Platinum sub incl the car insurance.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
Shall I continue?
</font>

Please do.

I would appreciate it - thanks.

i also would like you to go on as i was sent an invite for a C card but couldnt see the increased benefit for the extra 400 ukp - for a FF the priority pass is pretty much redundant, i feel comfortable with the insurance cover i have with plat, and i find the travel service/concierge pretty mediocre anyway - any input would be appreciated

[This message has been edited by flyingscots (edited 02-08-2003).]

To me the real cheapening of the Platinum brand came when Amex started offering a Platinum card with no annual fee and 2% cashback.

They were inviting people to apply last year and said they were launching it in Jan although I haven't heard any more about it.

That said, the day of the credit card as a status symbol has long gone. Back in the '80s it had some sort of wow factor but these days it is pretty meaningless. You are more likely to be considered a prat for having a gold or platinum card than anything else. Friends of mine have deliberately traded down to the plain old Green Amex just to make a statement.

Of course this doesn't stop the card companies queueing up to make a fortune by issuing these "exclusive" coloured cards.