Naturally, as early results showed Hyundai’s Assurance Plan working, other auto companies one-upped the program, proving yet again that competitive advantages are difficult to maintain. So Hyundai made tweaks: Now the Plan states that new owners are such valuable brand advocates (telling others how great Hyundai products are) that they deserve to be paid for their efforts. Thus, Hyundai sends new buyers cash monthly for six months, even if they have to return the vehicle. It’s simply a cash rebate paid out slowly, but it makes buyers feel smart about their choice rather than cheapening the brand’s image with cash on the hood.
Very smart, and it’s working: Hyundai is gaining retail share. While being first to market can be a bonus in the short term, it’s flexible tactics and communications that make competitive advantages sustainable.
I just came across this interesting piece of research from Nielsen: http://blog.nielsen.com/nielsenwire/nielsen-news/auto-buzz-toyota-has-strongest-online-advocacy/
Nielsen reports that despite Hyundai’s new offerings and extensive advertising efforts, the brand’s consumer advocacy rating falls lower than many other auto brands because of quality issues and poor dealership experiences among survey respondents.
According to Nielsen’s scorecard, Hyundai scored a 46. Only Isuzu (39), Suzuki (41) and Jaguar (43) are ranked lower.
Lois:
That has long been their Achilles’ heel, but they claim that the trend on those issues is improving.