Hyundai Lessons - Part 2

In order to move up to the luxury car buyer, it has taken Hyundai several steps starting in 1998. They had a quality problem and faced that by offering one of the best warranty programs in the industry and then re-engineering their components to back up this warranty. They didn't just make a simple upgrade; they looked at virtually every component and redesigned the failing ones and then used that experience to improve the cars under development!

The 2009 recession caused it to add a loss-protection program; allowing buyers who lost their jobs to return the cars.

"To get people to buy your car you have to get people to trust you," Hyundai CEO John Krafcik said. "We want people to think, 'Hyundai — they just take care of you.' "

These moves have paid off and the market share is up!

What can we learn? First, if we want to reach the major donor, we may have to examine every element in our all of our fund-raising programs and implement agency-wide changes. When I talk to clients about relationship-centered development, that's what we do. No matter the appeal or the event, we make sure that connecting with those donors is a key ingredient.

Second, you have to establish trust - trust in you as the fundraiser. That's just as important as a passion for the mission. You have to connect with the donor on a personal level, follow-up on all of the promises you make and finally, just like Hyundai, continue to take care of them long after the sale!

What can we learn from Hyundai - Part 1

Recently Hyundai announced it was going after the luxury car driver (major gift giver, to us) with its new Equus.

However, it is facing hurdles that are familiar to fundraisers - the experience. Hyundai is not moving this brand into a separate dealership with specially trained sales and service people who know how to appeal to wealthy customers like Lexus and other Asian spinoffs did. According to one automotive consultant, "True luxury buyers expect more than product. They expect a luxury sales and service experience and there is no way to do that through Hyundai dealers," he said.

Hyundai's solution? They dispatch a car to the customer for a test drive and offer valet-style service; the customer never has to come to Hyundai.

In my experience, our top-level donors also expect more of an experience with us and our agency. Our job is to figure out what the "win" is for them; what motivates them and then deliver it. Creating activities and social interaction for them with the agency and other donors is the challenge.