How Will GM Maintain Good Customer Service?

Today I am writing here about a letter dated July 15, 2008 from G. Richard Wagoner, Jr., the Chairman and Chief Executive Officer of General Motors Corporation.  (Here’s the link the letter lists, for more info: General Motors – click on “Investor News Releases”.)I own a modest amount of stock, which has been in the family since my grandfather, George Gatch, was a manager for GM.  So we’re close, GM and I, and we keep up on each other’s lives…  (LOL) Well bad news from G. Richard, no more dividends.  Oh well, didn’t need the income, just reinvested anyway, so no worry, it’ll be alright with me.  And he went on to describe all the cuts they’d be making:

• “Further reductions in truck capacity, and related components, stamping and powertrain capacity”
• “Reducing and consolidating U.S. sales and marketing budgets”
• “Reducing U.S. and Canadian salaried personnel costs”
• “Beginning in 2009, eliminating health care coverage for U.S. salaried retirees over 65, offset partially by a pension increase”
• “Limiting our corporate capital expenditures”

And the bad news continued, with this wrap-up;

“We have a solid position in the rapidly growing emerging markets around the globe, a commitment to technology leadership, and an ever stronger and more competitive product line-up.”

Although this letter filled the page top to bottom with business school MBA style writing, I couldn’t find a mention of their customer anywhere. Granted, the letter was to me, an investor, but how could there be anything to invest in without me, the customer?

If I was sending out this letter I would have added a sentence or two about continuing a strong commitment to customer satisfaction, to ensure maintaining market share… Without the customers, the company would not exist! What is it that the customer wants and needs? It’s certainly not a car! It’s transportation!

Since their letter spoke of a U.S. market downturn, how can General Motors make this a positive marketing position? (I was going to say if you’ve got lemons make lemonade, but nobody wants to hear about lemons and cars in the same breath!) How quickly can GM respond to changing customer needs? Customers are like flocks of birds, flying together in formation without any one leader, responding to weather and air currents, changing directions rapidly and keeping formation.

What does a market downturn mean? It certainly does NOT mean we need less transportation! It may even mean we need MORE transportation! If jobs become fewer and FURTHER APART (hint! hint!) we may need to travel MORE! Cars wear out, children grow up and need their first car, we’re not going to STOP buying cars! But what WILL we do? THAT’s the question that GM needs to be asking! Not what they can do to continue being a great big dominating car manufacturer that is now looking for new markets across the world!

Hey! Don’t abandon us! We’re your bread and butter!!! What do we need? How can you provide the customer service, GM, that we need to keep our transportation needs afloat? Don’t forget you’re in a RELATIONSHIP with your customers! We are only going to be satisfied if our expectations are met. So that’s your job – finding out what our expectations are, which may change on a dime, and then meeting and exceeding our expectations.

If there’s an economic downturn, how about doing a fantastic job with your used car sales lot? Every dealer has one! Don’t abandon your dealers! Who’ll sell cars for you when times are good if you don’t support your dealers now? Build a relationship with each customer that buys a cheap ugly low profit used car now, and they will come back to buy the gleaming shiny expensive toy when money becomes available! Good Customer Service is the key to repeat business! Here’s an idea that is so very obvious that I can’t believe there’s not one word in your letter….. Design a model specifically with ECONOMIC UPTURN in its’ name! Corner the market on cheap reliable simple gas conserving cars! Get silly with it! Cut every corner, make only one color available, only roll-up windows, no keyless locks, adjust your mirror the old fashioned way, by pulling it in! Hey – just stick a luggage rack on top and don’t even bother with a trunk! Get the price to the absolute bare minimum and make a NEW loyal customer base!!! Remember the 1969 volkswagon bug? You can be the new car for the masses!!! Make every eensie teensie part here in the good ole USA, and be a part of the economic UPTURN!!! Shout if from the rooftops! Make your message one of hope – not gloom. Your letter reads like this: We’re going to do a bunch of mean stuff and try to stay alive so we can make some money. Is THAT the message you WANT to send???? How about sending this message instead – We’re a great big powerful company that senses we have the resources to help the masses turn this economy around – we’re going to give you the economic transportation you need to keep afloat and keep moving! Bravo! There’s a challenge! Guess I have GM Customer Service in the blood, Grandpa!

What do YOU think? What can General Motors do to turn on a dime and send a message of hope, and secure customer satisfaction? You’re invited to join the customer service conversation!