As General Motors and its telematics subsidiary OnStar roll out 4G LTE connectivity across 2015 model year vehicles, the automaker is also introducing a new OnStar bundle. According to sources from GM’s dealer network, the new OnStar Basic Plan is free for five years, and includes the RemoteLink app, OnStar Vehicle Diagnostics, and a service called Dealer Maintenance Notification.
As it stands, Dealer Maintenance Notification informs a dealerships whenever there is a problem with a customer’s vehicle, allowing the dealership to reach out to the customer and coordinate a repair. The Basic Plan is free for five years (starting on the purchase date of the vehicle), and joins the existing Safe & Sound as well as Directions & Connections plans, which are priced at $19.95 per month and $29.90 per month, respectively.
As a manager at a GM dealership explained, the new Basic Plan might not seem like much at first, but it offers two key benefits:
- The convenience and ‘wow factor’ of the RemoteLink app (for free!)
- The opportunity to keep customers coming back to a GM dealership, (rather than having them go outside of the GM family) for maintenance and service.
It’s the second item that’s highly important and lucrative for dealers, as car service is big business for most. Add to that the unique RemoteLink app, and the new plan seems like a one-two punch by GM to boost customer retention.
|FEATURE||NEW BASIC PLAN (FREE FOR 5 YEARS)||SAFE & SOUND ($19.90/MONTH)||DIRECTIONS & CONNECTIONS ($29.90/MONTH)|
|REMOTELINK MOBILE APP||√||√||√|
|AUTOMATIC CRASH RESPONSE||√||√|
|STOLEN VEHICLE ASSISTANCE||√||√|