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Mercedes, American Express partner to co-brand first automotive credit card

August 22, 2011

Mercedes-Benz platinum card

German automaker Mercedes-Benz has partnered with American Express for two new credit cards aimed at retaining current customers and rewarding new auto buyers.

The two cards offer exclusive Mercedes benefits that include discounts and lease extensions. The co-branded cards will also include American Express membership rewards for the first time.

“From a marketing standpoint, we always look to create more stickiness with our consumers,” said Steve Cannon, head of marketing at Mercedes-Benz USA, Montvale, NJ. “Anything we can do to bind them to our brand, to our products and to our company helps us because at the end of the day, customer loyalty is what drives our business.

“Wherever we can tailor services to pay points in our transaction or delight customers with a customer service, that is ultimately what we are going to do,” he said.

“We think we have curated a great offering between what Mercedes-Benz brings to the table combined with American Express and [then] you combine that into an offering targeted for our customer base, and we think it’s going to be a winner.”

Racking up points
The first Mercedes credit card from American Express works like a regular lower-level card in terms of monthly payments and premiums.

However, in addition to just receiving points for the American Express rewards program, Mercedes cardholders also receive exclusive benefits from the automaker.

Benefits include five times the membership points for each dollar spent on any Mercedes purchase or maintenance in the dealerships or online, and three times the points for each dollar spent at a gas station.

In addition, Mercedes cardholders receive $500 off the purchase or lease of a new branded vehicle after they spend $5,000 on the card.

Cardholders are waived the fees for up to 1,000 miles extra on their leases.

The second card from American Express exclusively for Mercedes gives cardholders access to the American Express Platinum rewards program and 40 additional Mercedes benefits.

For example, Platinum cardholders receive numerous lifestyle benefits such as $200 off airline fee credit, access to “Once in a Lifetime” event programs hosted by Mercedes, and numerous other travel and leisure activity discounts.

Platinum cardholders also receive $1,000 off any new Mercedes car purchase or lease along with 2,000 extra miles on a new or outstanding lease.

The cards are available today.

“American Express and Mercedes-Benz are two brands that can sit on the same pedestal,” Mr. Cannon said.

“Very few brands that we come across have the same history – American Express is a 162-year-old brand and Mercedes Benz is a 125-year-old brand – and they continually improve their focus on the customer and their delivery of service as have we throughout our entire history,” he said.

Top of wallet
Consumers will be able to apply for the card directly online or with a dealer in any Mercedes dealership.

The dealer will not be able to approve the credit card. It must go through American Express’ regular application process.

The card was developed through extensive research on both ends into the lifestyle of Mercedes customers.

While the companies could not provide an official number, they did say a high percentage of Mercedes consumers are also American Express cardholders.

The Platinum card was specifically created for Mercedes given that the carmaker’s customers will have a high-acceptance rate to the Platinum level, per the brands.

Both brands will be marketing the card to current and new customers through a varied, multichannel approach.

This will include direct marketing to Mercedes customers who are already American Express cardholders.

Mercedes is ultimately hoping that this card will help them increase the number of returning customers, either for in-house maintenance, detailing or new purchases.

In addition, the card offers a physical way for Mercedes to stay “top-of-wallet” in consumers’ minds during the typical three-year wait period between car purchases, according to Geoff Robinson, vice president of marketing at Mercedes-Benz Financial Services, Woodcliff Lake, NJ.

For American Express, the card offers a unique way for the brand to expand their affluent customer base as well as offer their cardholders a larger range of benefits.

“This card is unique because these are two iconic brands coming together to offer extraordinary value, and it is really a lifestyle card,” said Gunther Bright, senior vice president and general manager of co-brand partnerships at American Express, New York.

“Individuals will be able to take this card and expand the [automotive] experience into fine hotels, dining experiences and retail,” he said.

“It’s a first in the industry and the first time American Express has offered a co-branded card with an automotive company.”

Final Take
Kayla Hutzler, editorial assistant on Luxury Daily, New York

Kayla Hutzler is an editorial assistant on Luxury Daily. Her beats are automotive, consumer electronics, consumer packaged goods, financial services, media/publishing, software and technology, telecommunications, travel and hospitality, real estate, retail and sports. Reach her at kayla@napean.com.