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September 2, 2006
The Big Car Company That Couldn't
Memo To: Bob Lutz, Vice Chairman, General Motors
You buy your first car of a brand because of image, design or brand association. You buy additional cards of that brand because of your total ownership experience.
I read your posting on General Motor's FastLane Blog this morning. For years, I purchased cars from GM and Chrysler despite underwhelming design and moderate quality -- I really wanted to support the domestic auto industry. This past year, however, I purchased a Pre-Owned Mercedes (the smallest, cheapest model they make), and getting me back as a customer seems unlikely. I appreciate your commitment to style/design and quality, but until you and your dealers get the customer service part right as well, you are still at risk.
GM lost me as a customer 6 years ago when I went to the local Buick dealer and was treated with disdain by people who felt I was a tire-kicker. I spoke to a sales rep who had his feet up on his desk and was leaning back in his chair with a look of annoyance that I was wasting his time. (I ended up buying a Dodge.) Compare that to my Mercedes experience. A friendly greeting by a receptionist, a couple of questions, then connecting me with a sales associate. From the outset, the sales associate emphasized what it meant to be a Mercedes owner. At the time, I thought it was all shtick. Then, I purchased.
First came a Thank You/Welcome package from Mercedes. Next came multiple letters describing owner programs. Then, a large package arrived with a personal Thank You letter from the dealer owner along with a framed 8" x 10" photograph from a local artist. On my birthday, I receive birthday cards. On the purchase date, I get an anniversary card. I have had two surveys sent to me. I have had loaner cars, pick and drop off service, and I get follow-up inquiries after a service appointment to check that I am satisfied. In short, the owner experience has been stunning, helping me overlook the car's shortcomings and quality defects.
Over and over, I see companies like yours make the same mistake. You design and build an acceptable (or even better) product, then blow the customer experience because of ineffective coordination with the distribution channel. I know your dealers are independent businesses, but instead of treating them as inventory stops, you need to work together to help them understand their critical role in customer relationship management. They are the people closest to the customer, and your company cannot succeed without them doing a better job. In service intensive businesses like the automotive industry, your customer service experience lives on long after the car's design becomes outdated.
Sincerely,
James R. Cioban, President, Cierant Corporation (and former GM customer)
P.S. In meetings, how do you guys actually rationalize the Hummer??? ;-)
Posted by jcioban at September 2, 2006 10:47 AM
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Comments
Well Jim, how do you really feel about poor customer information as it affects you and gas guzzlers?
Posted by: Paul Cornacchini at October 20, 2006 2:20 PM
