123 Loyalty Challenges Auto Sector to Move Closer to Its Customers

TORONTO--Feb. 3, 2006--123 Loyalty Inc., a company that designs web-based software for automotive customer retention and customer loyalty, today announced its entry into the automotive market with the launch of its newest product, 123CSI.

This solution allows auto dealers to automatically monitor and manage their customers' expectations, satisfaction levels and retention-giving them the tools to keep their customers coming back, and also pass the word on to their friends. It could be a key development in an industry suffering slumping sales and customer defections.

"We challenge automotive dealer principals to seriously deploy the system for one month and see for themselves how critical operational deficiencies are uncovered and rectified," said Andy Prevost, 123 Loyalty's president and chief technology officer-and a passionate evangelist of Internet-based measurement of CSI, the Customer Satisfaction Index.

Like 123 Loyalty's other products, 123CSI saves companies money, since it means they can reduce advertising expenditures to keep existing customers and attract new ones. The company estimates dealerships using 123CSI may spend between $1,500 to $3,000 per month less than they would spend using more limited customer feedback tools, and enjoy significant increases in response rates (from 5% to more than 50%).

123CSI includes an array of features such as event-based surveys, general marketing surveys, "alert" emails when customer dissatisfaction is identified, enews management, mailing list management, birthday greeting ecards, a built-in call centre and a resolution centre for key staff to resolve customer dissatisfaction issues (with a cost tracking system). The software is also easy to use, and gives dealers "real-time" or near-immediate feedback on how to deal with dissatisfied clients.

The software itself is not sold to the customer directly but is provided under an ASP software model (Application Service Provider Model). This means that the software is resident 123 Loyalty's servers and the customer is licensed to use the software and databases on a contracted monthly subscription fee basis. 123CSI also offers an enterprise version, for monitoring individual dealerships, groups of dealerships, multiple brand dealerships and manufacturers.

The company will market 123CSI directly to automotive dealerships and is seeking marketing partners across North America. The company will be present at the 2006 National Automobile Dealers Association convention, February 11-14 in Orlando, Florida.

About 123 Loyalty Inc.

123 Loyalty Inc. was formed in June 2005 by Andy Prevost, the company's president and chief technology officer, and Philip Forster, its chief executive officer and chief financial officer, to create and market customer loyalty and retention platforms to assist companies in managing their customer's expectations, satisfaction levels and retention implementation strategies. Its other products include DCP-Portal AE, which is based on 123 Loyalty's award-winning content management system currently used by over 380,000 leading web sites world wide. DCP-Portal is currently the world's fifth most popular content management system listed on Hotscripts.com.

123BidBuy is a new product aimed at the automotive business-to-business markets for wholesale sales and trades.

For further information, please contact: Andy Prevost, president and chief technology officer, 123 Loyalty Inc., 905-715-1712, andy@123loyalty.com. www.123loyalty.com.

Media contact: Howard Oliver, What If What Next(TM), 416-638-8582, holiver@whatifwhatnext.com.