GM Wants Toyota's Loyalty Rates


GM said Wednesday it wants customer loyalty rates, which are currently at 52% to 53%, to reach Toyota's industry-leading level of 58%, Reuters reports. The Detroit automaker says it focused too long on internal data, looking to cut warranty costs in half over the past five years. Indeed, improving reliability scores on onetime stinkers, like the current-gen Cadillac CTS, reflect as much. But overall consumer perception in surveys from Consumer Reports and J.D. Power and Associates still lags.

"There have been times when we had success beating our internal objectives only to be disappointed when we got the actual customer feedback from some of these third-party rankings," product development chief Mary Barra told reporters near Detroit.

GM has a shot at this, with more than 70% of its lineup seeing a refresh or redesign in 2012 or 2013. The automaker announced last June that it would tie employee compensation to how many shoppers returned for another Buick, Cadillac, Chevrolet or GMC. But reliability will need to improve on a few popular models — like the Chevrolet Cruze and Buick LaCrosse — before the automaker can declare mission accomplished.

The consequences are huge. Barra told reporters that a single percentage-point improvement in loyalty equates to around 25,000 sales or $700 million in revenue. Alicia Boler-Davis, head of GM's customer experience and product quality organization, told Reuters it costs five times more to get a new shopper to buy a GM product as it does to keep an existing owner coming back. Toward that end, GM has added more mystery shoppers and renovated 88% of its U.S. dealerships, and it's responding faster to customer complaints.

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They can start by building reliable cars.

DeBinder Dundett

Yeah, that's pretty hard to do considering the "mass-exodus" over the decades, away from GM and the domestic manufacturers toward the better-quality imports and later the American-made transplants.

I have no idea how GM is going to get those loyalty rates up since the only ones who will buy GM these days are members of the GM fan-club and the rental fleets.


I would never buy a GM because of the bail-out and I know many others who feel the same. Because of my Dad we were a GM family but slowly switched in the early 80's to Honda and never looked back.

For GM, I think it was to start with reliability and customer service as the article mentions. Post bailout brand consolidation it seems like the aren't quite taking the shotgun approach but it still seems like they release 2-3 new cars a years! Maybe if they focused more energy on improving models that are selling well they would be better off. Look at their line of trucks. Although truck sales are down due to gas prices, GM still has a nice size market share and they haven't changed that line much over the last 15 years. New body style and gadgets but they guts have remained the same for the most part.


Gm will have to improve a lot to achieve this. They just lost me as a customer after 40 years. I drove my 2012 chevy cruze off the lot and it filled up with smoke. Gm did nothing stating the there is nothing wrong with my car. The car has been to 4 dealers for a total of 7 times and I am now on my 4 th rental car thanks to gm and my lemon with no problems. How do they expect to keep us loyal with service like that?

Monika F. Smith

hahaha..good luck GM..the way you are handling this recall crisis is so like you all of Corporate America...greed has taken your objectivity and you do not give a hoot about retention nor any of your customers or you would not have hidden the ignition switch switcheroo without changing the part number...and I believe in that is also the case with the EPS system..I am having that looked into right now MS. CEO were the product development chief?????? ..hahaha..and you had no IDEA????? dumb do you think the American public is?....treat your customers like a King and give the recall victims compensation and the Cobalt and Ion owners a new car...maybe then..but only can save the retention that you have at this time...otherwise we will let anyone know how you treated us after you screwed us over royally on more than one occasion...I have learned a lot over the past 31 plus years of Chevrolet ownership...the Dex Coolant that cost me thousand in repairs on two vehicles...the faulty generator on my Monte Carlo that had to be changed 4 times and I had to pay for it and the batteries it fried each time...I have gotten older and I have gotten educated about your faulty products..if anything..your products have gotten worse over the years...screw you Chevrolet and GM….GMC and any of your products that you manufactore(d) under Toyota and any other name next car will be anything but any of those aforementioned ….period!!!!!...
Monika F. Smith

Monika F. Smith

Maybe I need to be a mystery shopper for GM?...but I already know what is wrong..the products suck big time...

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