GM Points = Brand Loyalty

I had a very interesting conversation with someone today about their car and why they purchased it. They did not have time for a full interview but they did share with me why they always bought Vauxhall cars:

The GM (General Motors) Visa credit card gives shoppers points every time they use it which build up and earn you money off of a car. This man told me that he used the card for everything from his food shopping to his mortgage payments. Over a couple of years he will build up a few thousand pounds which he can redeem against the price of a new Vauxhall car.

I found this really interesting because I never expected a car company to do this. In my very first lecture my tutor told us about the Ansoff Matrix, here is a quick snap of it from me lecture notes:

You could say that GM have developed their product and diversified into an unrelated area by producing a credit card. However, this area is not too unrelated because cars do deal with finance. Not only have they then diversified their company into a kind of service, they have linked it back to their original business. Of course the credit card is a Visa credit card but this partnership will benefit both companies. I think it is a very good example of promotion and diversification working together. It is also a strategy for creating brand loyalty.

(I should note down that GM credit card unfortunately declared bankruptcy a few years ago and only existing customers were allowed to keep their points for a certain number of years before claiming them or losing them)


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