I'll "pencil you in"

As the economy continues to suffer spasms, it seems everything is negotiable; even things that have already been negotiated. Vendors are not surprised anymore when a long-stable client calls to adjust or even cancel a contract. Mortgage companies are no longer shocked when a homeowner simply stops making payments. And many workers have either experienced--or seem to anticipate--some kind of an adjustment to the terms of their employment. (There was a great story in the New York Times a couple of weeks ago, talking about the extent to which employment contracts have become “eminently rewritable”).

Implications: In January, Hyundai launched the Assurance Program, which essentially encouraged people to buy their new car, even if they were worried about the future of their job. “If you lose your income in the next year, we’ll take it back.” The company was up double-digits that month, even as other car companies were down double-digits (except Subaru, which was essentially flat).

A second iteration of the plan, Assurance Plus, holds that the company will make a few of your payments if you lose your job (it’s hard to look for a new job if you don’t have a car to get to your interview). As often happens in the automotive category, it seems like most other car companies have now piled-on to this concept. Everyone seem to have some kind of a “confidence” plan.

It occurs to me that another name for "confidence plan" is, "escape clause." We're giving consumers a way out of their commitment. We're offering a contract with a caveat.

Automotive is not the only place where contracts are not as solid as they were once thought. Consider the mortgage meltdown that had thousands of people stepping away from their bank. Or, people and companies who have gone through bankruptcy (or taken drastic measures to avoid it), with employment contracts or vendor commitments as casualties. We are surrounded by contracts that are frequently erased or ignored.

And now, in a way, consumers are being offered contracts which are equally "re-negotiable."

What does it mean when consumers are learning to “pencil you in?” It means earning the next sale might not be enough. You may have to re-earn the sale you’ve already made. That’s certainly no less true for the B2B vendor… than it is for the typical car company. Whatever business you're in, fundamental customer care--and knowing you're exceeding expectations and delivering meaningful value--are more important than ever.