In the Money
"We find that students who use our credit cards in college remain customers of ours for the rest of their lives," says Monica Beaupre, the head of public affairs for the American Express Gold Card. "They turn to us when they get married, buy a house, send their kids to college, or need a loan."
Both in the short-run and the long-run, college students, collectively, have enormous spending power.
Student Monitor Research estimates that in the year 2000 alone, college students will spend $105 billion on products like entertainment, books and clothes.
Credit card companies in particular have latched on to the student market, with the knowledge that they could be creating lifelong customers. ASL documents filed with the SEC show that credit-card companies represent the bulk of the list-maker's business.
But targeting these potential customers is not cheap.
ASL and ELS charge between $40 and $120 per thousand names, a premium over the cost of lists of the general public.
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