Improving GM EV Commerce - Lawrence Najjar
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Najjar, L. J. (2021). Improving GM EV commerce [Unpublished manuscript].
Improving GM EV Commerce
General Motors (GM) is planning to introduce 30 electric vehicle (EV)
models by 2025 (Our path to an all-electric future, n.d.). To sell all
those new EVs, GM may want to create a better purchase
experience. This paper describes three major strategies GM could
use to improve their EV commerce experience.
Strategy 1: Make ra-onal and emo-onal appeals to prospec-ve
customers
The first strategy is to use rational and emotional arguments to
encourage prospective customers to purchase an EV.
Ra-onal
Rational appeals include:
• Reduced fuel costs (Borlaug, et al., 2020; GM partners with
Qmerit to create a more accessible at-home charging solution,
2019; National Research Council of the National Academies,
2015)
• Lower cost of ownership (Evolution of mobility: The path to
electric vehicle adoption, 2019; Harto, 2020; Preston, 2020)
• Reduced emissions (Knobloch et al., 2020; McKerracher, n.d.;
Office of Energy Efficiency and Renewable Energy, n.d.;
Reichuth, 2020)
• Good range (independent studies suggest about 300 miles
satisfies most potential customers) (Accelerating the EVolution,
n.d.; Evolution of mobility: The path to electric vehicle adoption,
2019; Survey: Price, range and weak charging networks are top
reasons consumers avoid EVs, 2019)
• GM EVs exceed the 160-mile range used by most drivers (Baik,
Hensley, Hertzke, & Knupfer, 2019)
• Fast charging (Eisenstein, 2020)• Greater convenience (charge at home, work, locally, or when on
a trip)
• Almost no EV drivers would switch back to a fossil fuel vehicle
(EV driver survey report, n.d.).
Differen-ate the GM EV product line from compe-tors
GM has strengths they can use to differentiate their EV products from
other EV manufacturers, including:
o Longstanding brand that will continue to be in business:
▪ Founded over 100 years ago
▪ Over 4,000 United States dealers (GM in the U.S.,
n.d.)
▪ Sells over 2.5 million vehicles annually (GM 2020
sales far outperform the U.S. industry in fourth
quarter and calendar year, 2021)
▪ Over $137 billion in annual revenue (GM in the
U.S., n.d.)
▪ Over $6 billion in annual profit (Fortune 500:
General Motors, n.d.).
o Ultium batteries (estimated over 450 miles of range for
first version, even higher on second version, depending
on vehicle and selected battery) (Beresford, 2020a;
McEachern, 2020; Our path to an all-electric future, n.d.;
Valdes-Depena, 2020)
o Local EV service locations (Dealer locator, n.d.)
o Home EV installation partnership with Qmerit (GM
partners with Qmerit to create a more accessible at-home
charging solution, 2019)
o myChevrolet Energy Assist app to find local EV chargers
and plan trips (General Motors makes EV charging on the
go easier than ever, 2020)
o Almost completely wireless battery management system
that reduces wiring and weight, extends battery life,
supports battery reuse, and supports over-the-air battery
improvements (General Motors’ future electric vehicles to
debut industry’s first wireless battery management
system, 2020; Goreham, 2020)
o Partnership with growing EVgo charging network (adding
2,700 more fast-charging stations in next five years)
2(General Motors and EVgo aim to accelerate widespread
adoption by adding fast chargers nationwide, 2020;
Szymkowski, 2020b)
o Super Cruise advanced driver assist system (Hawkins,
2021).
To make their EVs more attractive to prospective customers, GM
should also offer:
o A lifetime battery warranty (10 years; 20,000 kilometers;
currently offered on Hyundai Kona) (Evolution of mobility:
The path to electric vehicle adoption, 2019; Gorzelany,
n.d.)
o Secure, over-the-air software updates (GM digital vehicle
platform debuts, enables adoption of future technologies,
2019; Making our all-electric vision a reality, n.d.; Over-
the-air updates with electric vehicles, n.d.) (A security
suggestion: When a software update is available,
customers enter their password and a short-term,
randomly generated number from the GM update app;
GM shows customers their last three vehicle service
dates, times, services, and service advisor names so the
customers can confirm it is GM that is requesting a
connection to their vehicle)
o Free EVgo charging for one year
o Free charging at GM dealerships
o Temporarily free OnStar Guardian service (Beresford,
2020b; GM’s new OnStar Guardian app offers peace of
mind as people get back on the road, 2020)
o Temporarily free roadside assistance (Roadside
assistance, n.d.).
In the future, GM could provide in-vehicle 5G wifi connections to
reduce accidents via vehicle-to-vehicle communication and
autonomous vehicle services, plus over-the-air updates and
infotainment (Davies, 2020; Dignan, 2020; GM to expand electric
vehicle production in China, add 5G to vehicles in 2022, 2020).
3Emo-onal
In addition to the rational appeals described above, GM may want to
make emotional appeals to prospective EV customers, including:
• Quick acceleration
• Quiet ride
• Nimble, responsive ride (due to low center of gravity)
• Regenerative, one-pedal driving experience (National Research
Council of the National Academies, 2015)
• Fun driving experience
• Reduced air pollution
• Reduced contribution to climate change.
Strategy 2: Improve purchase experience
The second strategy is to provide a better purchase experience for
customers. Ideas include:
• Customers schedule test drive online
• Customers (with dealership) can also perform test drives
without appointment
• Dealership leases test drive EVs from corporate at low rates
• Corporate pays for EV inventory (Ferris, 2020)
• Using an accessible, omnichannel approach, customers can
research and build their EVs using responsive Web site and
mobile app, plus conduct online chat and remote meetings with
EV “geniuses”
• Online purchase process includes wizard based on customer
preferences (pickup truck, crossover, SUV) or direct vehicle
selection (Bolt, Bolt EUV, Cadillac Celestiq, Cadillac LYRIQ,
Cruise Origin, Hummer EV, etc.) (Szymkowski, 2020a)
• Online site provides no-haggle, fixed pricing
• Customers can complete EV purchase online (financing
available via corporate; customer identifies local dealership for
pickup) (Berman, 2020; Brand experience centers, at-home
maintenance, service pick-up and drop-off: These are the
modern automotive dreams, new research shows, 2020;
Kominek, 2020)
4• Dealerships can offer service discounts, car washes, and other
freebies, but not vehicle price discounts
• Dealership handles trade-ins and applies as discount to fixed
prices
• Web site sends update emails and texts to customer (e.g.,
“Your vehicle is ready for pickup at Metro Chevrolet. When do
you want to come by?”)
• Local dealership has certified EV “geniuses” (not commissioned
salespeople) (Brand experience centers, at-home maintenance,
service pick-up and drop-off: These are the modern automotive
dreams, new research shows, 2020; Ferris, 2020; Kominek,
2020) and EV service experts
• Local dealership has compatible EV chargers
• Local dealership has customer lounge with wi-fi, coffee bar, and
snacks
• Local dealership preps delivered EV for customer delivery or
pickup
• Dealership delivers EV to customer home or customer picks up
purchased EV at local dealership (Brand experience centers,
at-home maintenance, service pick-up and drop-off: These are
the modern automotive dreams, new research shows, 2020)
• Dealership gets fixed fee
• Dealership handles any returns
• To encourage future purchases, dealership provides EV
“roadeos” (National Research Council of the National
Academies, 2015), EV rallies, on-site EV chargers, on-site EV
service, mobile at-home vehicle service (Brand experience
centers, at-home maintenance, service pick-up and drop-off:
These are the modern automotive dreams, new research
shows, 2020; Kempf, Lühr, Schaufuss, Strigel, & Tschiesner,
n.d.), concierge pickup/dropoff service, optional software
upgrades (e.g., infotainment), hardware upgrades, home
installation of EV chargers (through the Qmerit partnership),
accessories, customizations, and new car showroom
• Dealerships offer EV leases and subscriptions (service that
allows customers to replace one EV for another after a defined
period)
• Corporate provides customer relationship management
software to offer personalized experience by integrating contact
5texts, emails, calls, customer sales and service, social media
posts.
Strategy 3: Improve the aEer-purchase experience
The third strategy is to provide a better after-purchase experience,
including:
• Automated email or text service reminders
• Online service appointments
• Home pickup/dropoff of vehicle for service (Brand
experience centers, at-home maintenance, service pick-up
and drop-off: These are the modern automotive dreams, new
research shows, 2020)
• At-home vehicle maintenance (Brand experience centers, at-
home maintenance, service pick-up and drop-off: These are
the modern automotive dreams, new research shows, 2020;
Ferris, 2020)
• Over-the-air software fixes, updates, and upgrades
• Remote repair of software problems (Kempf, Lühr,
Schaufuss, Strigel, & Tschiesner, n.d.)
• Low battery mobile service (Kempf, Lühr, Schaufuss, Strigel,
& Tschiesner, n.d.)
• Battery care service (Kempf, Lühr, Schaufuss, Strigel, &
Tschiesner, n.d.)
• Battery recycling
• Vehicle returns and exchanges (Brand experience centers,
at-home maintenance, service pick-up and drop-off: These
are the modern automotive dreams, new research shows,
2020).
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11About the author
Lawrence Najjar is an award-winning user experience designer in
Austin. With user interviews and iterative design, he makes the
complex simple. Lawrence contributed to the success of large
enterprises, such as BMC, Informatica, IBM, and Pitney Bowes, and
small design consulting firms. He has advanced degrees in
engineering psychology from the Georgia Institute of Technology.
lnajjar100@gmail.com
http://www.lawrence-najjar.com/new-index.html
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