Recently while watching television one evening (something that I do to empty my mind and just veg out) the OnStar commercial caught my attention.
OnStar, formed in 1995, was a collaboration between GM, Electronic Data Systems (EDS) and Hughes Electronics Corporation, each bringing expertise to the enterprise to integrate phone, email, turn by turn directions, remote automobile diagnosis, and emergency service to GM equipped automobiles.
In 1996 GM began equipping certain models with OnStar, offering a free service period then requiring monthly fee based service.
While millions of automobiles have been equipped with OnStar over the past 13 years, as of December of 2007 OnStar only had 500,000 or so subscribers.
Why so few? The answer in my opinion has to do with marketing, not technology.
Almost every human driving an automobile has some type of mobile communicating device. Mobile Phone, Smart Phone, iPhone; all equipped with GPS technology, mobile communication capabilities, mapping.
Most people must have thought as I did (I have a vehicle with OnStar that I have never used) "why pay for something that I already have"?
What caught my eye and almost knocked me over while watching the ad on TV was how GM has re-introduced OnStar as the ultimate driving safety device. Instead of trying to compete with other mobile communicators, GM has positioned OnStar as the ONLY device that will not become airborne in an accident, will not become lodged under or between the seats at that moment when assistance is critical, and does not require the driver to take hands off the steering wheel or eyes off the road to use.
What a stroke of genius. Taking 13 year old technology and repackaging it to better the competition at their own game. Just think, everyone can relate to trying to find their phone in the car when they make a quick turn or stop suddenly, can you imagine trying to find your phone after an accident when you are shaken up, injured, or worse?
When thinking about how to best market your company doesn't it make sense to take a step back and think about what you really provide in the way of services or products? Janitorial Company or Environmental Management Company, Janitor Supply or Environmental Tool Management System? Computer Nerd or Data and System Technical Services?
OnStar could teach us all a lesson in marketing and communication to our current and prospective customer.
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