General Motors is gearing up to increase repeat business with an incentive program for its employees. The automaker has added a new level of bonus compensation that rises with customer retention rates.
“That is the ultimate result of why we’re doing all of this, right? People come back and buy our cars and trucks,” said President of GM North America Mark Reuss to Automotive News.
While the exact details surrounding the bonus were not announced, the salary component was just added in 2012. Last year, The General added bonuses for the compensation packages of salaried workers that require hitting company-wide targets for vehicle quality. Reuss appointed Alicia Boler-Davis to head up vehicle quality as well as customer experience.
Currently the automaker is hard at work in overhauling the end-customer experience, with Chevy dealers being encouraged to visit Disney World and Cadillac establishments being told to go to Ritz-Carlton hotels to experience first hand the quality service clients should receive at the stores.
The GM Authority Take
It’s terrific to see GM focus on improving customer experience and retention, but shouldn’t something as “common sense” as this be implemented on a global scale, rather than regionally?
Furthermore, we have to wonder how GM’s repeat business bonus plan defines repeat business; for instance, does the plan account for Saturn, Pontiac, Saab, or Hummer customers? And what about attaining new-to-GM customers? Because we can name at least two types of buyers that GM is blatantly ignoring in North America as of this writing… so we have to wonder if employees will be empowered to push their employer into entering new vehicle segments.