GM 60-Day, Money-Back Guarantee Is Working -- Mostly
By Michelle Krebs September 25, 2009General Motors launched its latest marketing campaign, "May the Best Car Win," a couple 
of weeks ago. It includes a 60-day money-back guarantee to buyers of its Buick, Chevrolet, Cadillac and GMC models through Nov. 30, which could be extended, a GM execuctive said Friday.
Is the campaign working?
The answer is - mostly.
Based on Edmunds.com data, the GM program: is drawing more shoppers to GM vehicles than before - on some brands and models more than others; and is turning some shoppers into buyers in varying degrees depending on the brand and model.
"This program's message is a statement that GM has confidence in its products," said Edmunds.com CEO Jeremy Anwyl. "The company has come a long way in product development, but the brand has to overcome negative perceptions in order to win more customers."
Taking a Look at GM
The campaign, indeed, has boosted shopping for GM vehicles, which took a hit during the lead up to and the filing of Chapter 11 bankruptcy in June.
Over the course of the program, which officially went into effect Sept. 14and was promoted over the previous weekend, shopping for GM vehicles has been up nearly 10 percent, according to Edmunds.com, based on shopping on its Web site.
The hike was higher in the early going, as the program was announced and the television commercials, starring GM Chairman Ed Whitacre, made their debut.
Taking a Look at GM Brands
Drilling down to the brand level, Chevrolet has seen the biggest lift on shopping with about an 11 percent increase. GMC has benefited some with Cadillac and Buick, respectively, less so.
Edmunds.com's analysis of shopping data - data that combines consumers just having a look at a brand or model to those actually configuring and pricing one indicating an intent to purchase - showed mixed results by brand:
- For Cadillac and GMC, the program is attracting new shoppers as well as new buyers;
- For Buick, the program is not attracting new people to consider the brand but is encouraging those already considering a Buick to buy;
- For Chevrolet, the program is attracting new shoppers but not many new buyers.
|
Brand |
Consideration |
Purchase Intent |
|
Buick |
0% |
19% |
|
Cadillac |
11% |
26% |
|
Chevy |
12% |
5% |
|
GMC |
24% |
35% |
Source: Edmunds.com
Taking a Look at GM Models
In terms of models, the Chevrolet Malibu is benefiting most and significantly from the money-back guarantee. Since the program's introduction, the Malibu has been cross-shopped far more often against import competitors like the Toyota Camry, Honda Accord, Nissan Altima and Hyundai Sonata than it had been before the program.
Other models benefiting are the Chevrolet Camaro and Tahoe and the GMC Yukon, Acadia and Sierra 1500. -- Michelle Krebs, Senior Analyst and Editor at Large
LEAVE A COMMENT
GM need to focus on improving the quality of their network of incompetent dealers. It is bad enough having parts fail on $55K Corvette but dealing with the Mr Bad Wrench Crew is a life changing experience. Never again GM.
The real question will be how cost-effective this program will have been once those trial periods begin drawing to a close. It's still too early to tell.
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