Newgen Results Corporation Launches Three New Products
16 June 1999
Newgen Results Corporation Launches Three New Products
SAN DIEGO--June 16, 1999--Newgen Results Corporation , a leading provider of customized, outsourced database management, direct marketing and related services for automobile dealerships' service departments and automobile manufacturers, today announced that it has begun selling three new products that are designed to increase profitability, efficiency and customer satisfaction at automobile dealerships. The new products, Reservations, ROAD and Connections, were introduced at Newgen's national sales meeting in late May, and are now being actively sold to Newgen's existing RESULTS customers.Newgen developed its new products to work in conjunction with its popular and highly effective RESULTS program. RESULTS, Newgen's unique customer relationship management system, has a proven track record increasing dealerships' profitability. Over the past several years, Newgen has demonstrated that customers solicited by Newgen visit the dealership three times more often and spend 2.5 times more than customers not solicited by Newgen. Dealerships that use Newgen's RESULTS program achieve an 8:1 average return on their investment.
"Our ultimate goal is to transform the experience for the consumer when getting their car serviced at an automobile dealership. We believe and have proven with our RESULTS program that a satisfied customer becomes a loyal, repeat dealership customer," said Gerald Benowitz, chairman, president and CEO of Newgen. "Our new products, announced today, are designed not only to increase the satisfaction of the consumer, but also to increase the dealerships' ability to perform customer analysis to enable customized and targeted promotions via our new ROAD program. In addition, these new products represent a key milestone in our business strategy to diversify our revenue stream."
Newgen Reservations
The reservations process is one of the most challenging for the service department of an automobile dealership. The dealership is generally not staffed appropriately and service advisors are not able to spend sufficient time with customers on the phone to address service and maintenance concerns, especially at peak times such as Monday mornings. Newgen overcomes these challenges by providing an end-to-end solution with its Reservations and RESULTS programs. For example, when a dealership customer calls the dealer to set an appointment for service, the call is transferred to Newgen's teleservice facility where a trained reservation coordinator updates customer information, captures all customer concerns and recommends needed maintenance. The reservation coordinator has access to the dealerships' shop load and is able to schedule an appointment that fits both the customer's and dealership's needs. With Newgen's program, the customer receives a reminder call 48 hours prior to the appointment. Newgen prepares monthly reports to show key indicator comparisons of Reservations customers versus non-Reservations customers. Results from Newgen's pilot program indicate that customers scheduled by Newgen keep their appointments more often and spend more per visit than historical averages. The Reservation program, previously available to a select number of pilot dealerships, is now being sold by Newgen's sales force to dealers across the country. Dealerships are charged on a transaction basis, per kept reservation.
Newgen ROAD
ROAD is designed to revolutionize dealership marketing of service operations by providing dealerships with immediate access, via the Internet, to the large amount of information about their customers that is contained in Newgen's database. Dealerships can access on-demand dealer reports and customer satisfaction summaries as well as industry news to support direct marketing and promotional programs. For example, using advanced mapping technology and the RESULTS system, ROAD provides a dealership with targeted analysis capabilities designed to improve sales, profit and customer satisfaction. ROAD can provide a dealership with a visual depiction of:
- Location of sales, service and parts customers
- CP dollars per customer and location
- Parts and service revenues
- Repair order analysis
- Optimum driving distances for marketing and sales promotions.
ROAD is now being sold to dealerships across the country, who will pay a monthly fee.
Newgen Connections
Newgen's Connections program is designed to build customer loyalty to a dealership by monitoring customer satisfaction through a series of surveys. Satisfied customers are more likely to purchase another vehicle from a dealership that has provided superior service. The Connections program is a survey system that enables dealerships to track customer satisfaction. The program offers:
- Dealer customized questions, survey scripts and scoring formats,
- Four different survey formats for new vehicle purchases, used vehicle purchases, warranty service and customer pay service,
- Daily and monthly performance reports,
- Performance monitoring of sales and service staff,
- Immediate notification of sales and service opportunities, and
- RESULTS and ROAD system platforms.
The Connections survey can be conducted with a touch-screen kiosk at the service cashier's desk, via email, or by Newgen's experienced teleservice staff. The Connections program is currently being sold by Newgen's field sales force. Fees to the dealership are based on a combination of monthly fees determined by the level of activity and type of survey utilized.
About Newgen Results Corporation
Newgen is a leading provider of customized, outsourced database management, direct marketing and related services for automobile dealerships' service departments and automobile manufacturers. Newgen combines its expertise in database marketing and customer retention services, with customer service and in-depth knowledge of service department operations to provide highly targeted and customized solutions. Since the beginning of 1996, Newgen has grown its customer base from 177 to over 2,200 dealerships and currently it solicits over five million dealership customers.
Newgen's services are designed to attract more service customers to dealerships from the dealerships' customer base; increase dealership revenues per customer; promote customer loyalty and increase customer satisfaction; differentiate the dealership from its competition through improved operations; and provide the benefits of a safer vehicle with an increased resale value. For more information, call 800-7NEWGEN or visit Newgen's web site at www.ngresults.com.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about new product features, the benefits of new and existing products and the timing for commercial launch of new products being offered by Newgen. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to risks related to market acceptance of Newgen's new products, rapidly changing product requirements, and the introduction of new products by competitors of the company. These factors and others are more fully discussed under the heading "Risk Factors" and elsewhere in Newgen's Registration Statement on Form S-1 (No. 333-62703), as filed with the Securities and Exchange Commission.