Automakers expect the industry to shrink in the coming years, forcing them to look at new revenues streams while maintaining customer loyalty. General Motors is trying to do that with a new GM rewards program the company launched earlier this year, according to Automotive News.
“We are in the post-record time for vehicle sales,” Michelle Krebs, Autotrader executive analyst, told the publication. “The pie is not growing, it’s shrinking. So it is critically important for brands to hold onto their loyal buyers rather than going after new ones.”
The GM rewards program is optional with dealerships signing up customers who can earn points in a variety of ways. Customers receive 1,000 points upon signing up and completion of their member profile. Five thousand points are available to customers who purchase a certified pre-owned GM vehicle while customers can earn 20,000 points for buying or leasing a new GM vehicle. Customers don’t have to pay big bucks for points, though. Every $1 spent on service, certain repairs, accessories, or a plan from OnStar nets six points.
GM offers a range of rewards. Customers can get $10 toward a service for 2,000 points while 100,000 points earn $500 toward a new vehicle. Customers can also earn discounts on accessories, maintenance services, and much more.
In addition to dealerships signing up new GM rewards members, GM itself is reaching out to customers with informational and enrollment emails. GM has been doing this since at least May. The program launched in the second quarter of this year as part of the company’s Essential Brand Elements program for dealerships. However, GM is marketing the program through the brands, meaning the GM rewards program is called My Chevrolet Rewards, My Buick Rewards, and My GMC Rewards in those respective areas.
“Everyone needs to hold onto their current customers for sales and service,” Krebs told Automotive News. “It’s becoming incredibly important and it’s supportive of dealers.”