If you’ve been following our extensive coverage of current GM discount offers, incentives, and rebates, you may have noticed that certain offers are restricted to “current competitive owners” – those who own a non-GM vehicle. Such discount offers, known within the industry as “conquest offers” that are meant to entice owners of other manufacturers to “switch” to the vehicle from another automaker, are coming under scrutiny, as loyal GM owners voice their displeasure with the fact that General Motors is seemingly favoring new customers over those who have been buying its products.
The comment below, voiced by a GM Authority reader, really highlights the root of the frustration:
I have to agree with others… it feels like Current & Loyal GM Owners are being left out. Why limit it to NON GM owners? If it is offered to everyone, then Current Owners may trade-in their current vehicle for a new vehicle, which would make those used cars available to Current & Non-Current Owners who may not want to or be able to buy a brand new vehicle. It seems like that would be a WIN / WIN situation for GM.
Objectively, the first half of the above statement is sound: if a certain GM discount is applicable to a larger amount of people, then that should, in turn, mean that more people will take advantage of that offer, resulting in higher sales volumes. But we have to imagine that there are other parameters that The General takes into account before rolling out its incentives, such as those associated with specific business objectives and targets.
Specifically, we’re certain that GM is optimizing its incentives for higher profitability over than pure sales volumes, which has been the automaker’s strategic direction for the past several years. However, the strategy seems to be having somewhat of a negative impact, as another GM Authority reader writes:
I own a 2012 Cadillac SRX and am seriously considering a GMC Acadia Denali, but a major discount would not apply to me because I am a GM customer?
The ‘major discount’ referenced above was an $8,000 GMC Acadia discount offered back in May. Thus, it seems the GM discount offers for competitive owners may be problematic, as they’ve been stirring up dissatisfaction amongst existing customers. We should note that the issues presented here are not unique to GM, but are a strategy practiced by most automakers.
So, what do you think? Does The General need to take corrective measures to make sure its existing customers are happy, and extend conquest-level incentives to everyone, or is this much ado about nothing? Let us know what you think by participating in the poll and dropping a comment.