How American Express Japan Discovered A New Market (Of Women Consumers)
Yoshimi Nakajima, Vice President, Head of Marketing and International Consumer and Small Business Services at American Express International.
“American Express previously mostly targeted men in their twenties to fifties, who had a secure job and income in Japan. As a result, our services and benefits tended to be more male-oriented which created a strong perception of ‘for males only’ product and servicing,” recalls Yoshimi Nakajima, Vice President, Head of Marketing and International Consumer and Small Business Services at American Express International.
This all changed in 2006 when American Express in Japan launched a service to women called Club Essencia. Nakajima was instrumental in starting the program, which was the first such club targeting non-working women as well as working women in American Express worldwide.
The initial idea came from Nakajima’s personal experience. From her own situation and that of her friends, she realised there was an untapped market, especially considering that women traditionally made most of Japanese purchasing decisions even if they weren’t the main earner in the household.
“We knew, of course, that women with very strong purchasing power were a critical market segment for the credit card business. But we also realized that we were under-penetrating the affluent and quite profitable female customer segment. We saw that there was a tremendous opportunity to reach a wider market, through the targeting of the growing and profitable female consumer market more effectively.”
“We knew, of course, that women with very strong purchasing power were a critical market segment for the credit card business. But we also realized that we were under-penetrating the affluent and quite profitable female customer segment.”
Through market research, they then discovered that women’s interests were broader than men’s and that they were willing and eager to have new experiences, says Nakajima. Further, they found that women’s interests were evolving and changing more rapidly than men’s.
Their conclusion was that products for women needed to be flexible enough to meet women’s wide-ranging and changing interests.
This led to Essencia Club, which through business partners offered special offers and services around four themes: fun, excitement, quality and better service. This included eating, hobbies, travel, fashion, entertainment, and beauty and health. The idea, says Nakajima, is that the service, which has a website, follows the latest consumer trends as well as using customer feedback to design special benefits matched to needs and interests.
Essencia’s target market is women aged between 30 and 49, each with an annual income of around ¥5 million (approximately $53,000). It is also targeting non-working women whose household income is around ￥7 million (about $73,342).
Members are given special treats such as when Essencia members were invited to a cherry-blossom viewing event on a cruise ship featuring Italian cuisine and music. Other membership rewards (available to other card holders on the American Express points programme, not only Essencia members) have included a tour to a ball in Vienna with a private lessons by a professional dancer to a chance to create your own sake.
“It is a 360º approach integrating every customer touchpoint to create exceptional customer experience every time and over time,” says Nakajima.
What is happening in Japan is unique for American Express and will provide some important data for the rest of the company. Japan is a test market for marketing to a previously underwhelmed customer segment — women.
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