Page 114 -

104 Managing Customers Through Economic Cycles

When one retail executive commented that a supportive
and open environment is his priority, particularly when
economies contract, he added that it is also critical for a
sense of integrity. It is equally as important to keep honesty
and trust high with customers.

Hyundai example

The automotive manufacturer Hyundai came out with an
advertising campaign that addressed the high anxiety over
consumers losing their jobs in tough economic times.
Hyundai referred to this campaign as their Assurance Plus
program. Hyundai Assurance Plus stated that “[F]or a
limited time, if you lose your income, we’ll make your
payments for three months … if that’s not enough time to
work things out, you can still bring it back … between
April 1 and April 30, get great deals on any car in our
full line of fine days … 10-year/100,000 mile powertrain
warranty.”

They initiated this campaign in a depressed economy
while none of their competitors initially offered comparable
programs. As a result it was a very successful campaign.
The program started April 1 and ran until April 30. The
company said the program helped it avoid a potential
double-digit sales decline in the month, instead reporting
just a 2% slide.

Naturally, Ford Motor Co. and General Motors Corporation
followed suit, offering payment protection plans to help
reassure consumers who may be putting off buying a new
car because of worries about losing their job. The offers
came as auto sales reached their lowest levels in 27 years.
Ford’s program will cover payments of up to $700 each
month for up to a year on any new Ford, Lincoln, or Mercury
vehicle if the buyer loses their job. GM then said it will make