General Motors will re-launch the Book by Cadillac car subscription service next year with a revised strategy aimed at improving the customer experience and reducing overhead costs.
Book by Cadillac was suspended in December of 2018 after the automaker struggled to make money with it. At the time, sources familiar with the situation indicated the automaker was experiencing problems with the back-end technology that ran the service, which proved to be time consuming and tedious for both GM’s developers and the consumer. Additionally, GM had trouble controlling costs related to maintaining, repairing and detailing the various cars that were available to Book by Cadillac subscribers – which they were free to swap out as frequently as they liked.
Speaking at the recent J.D. Power/NADA AutoConference in Los Angeles, GM’s chief marketing officer, Deborah Wahl, outlined some of the changes they will make, saying the revised version of the service will offer greater “convenience, flexibility, and value for potential subscribers.” She didn’t provide specific details on the various improvements that will be made to the service, Automotive News‘ report indicates, but said the company is more focused on providing the right price, value and product bundle to customers for the set monthly fee.
One way Book by Cadillac may change is with regard to car swapping. Previously, customers paid $1,800 a month and were given access to a fleet of Cadillac vehicles delivered to their home by a white-gloved Cadillac employee, with the possibility to swap models on a regular basis. Research showed that customers rarely swapped vehicles, though – instead paying for commitment-free access to popular vehicles like the Cadillac XT5 without having to worry about maintenance or insurance costs.
Additionally, Cadillac dealers will become more involved in Book by Cadillac. It’s not clear what role they will play in the service going forward, but the vehicles offered through the service last time were owned and taken care of by GM itself. This time around, dealers might handle some of that work.
So why is Cadillac re-launching Book by Cadillac despite its past struggles with the service? Wahl said that 70 percent of the service’s users were new to the brand – which is important for Cadillac, whose customer base isn’t getting any younger. If new ownership solutions like Book by Cadillac can put more butts in the seats of vehicles, it’s easy to why GM is interested in continuing to pursue them.
“There’s really no one-size-fits-all solution for personal transportation,” Wahl said at the conference.
Look for the new Book by Cadillac service to launch at select dealerships in the United States in February 2020. We’ll have full details on the new program once they become available.
Source: Automotive News