Newgen Results Corporation's Study Supports Higher Vehicle Sales for Dealerships
14 September 1999
Newgen Results Corporation's Study Supports Higher Vehicle Sales for Dealerships
SAN DIEGO--Sept. 14, 1999--Analysis of 500 Participating Dealerships Shows that Active Customers are Three Times More Likely to Purchase Another Vehicle from
the Same Dealership
Newgen Results Corporation (NASDAQ NM: NWGN), the leading provider of customer relationship management products and services to the service sector of the $1.3 trillion U.S. retail automotive industry, today announced the results of a study of 500 participating automobile dealerships currently using Newgen's Results Program - a proprietary closed loop system designed to provide dealerships with a "turn-key" approach to customer retention.
The study demonstrated that a vehicle owner active in the Newgen database is three times more likely to purchase a new vehicle from the same dealership compared to vehicle owner not active in the Results Program. Study sales were measured from dealers who have been on the Results Program for at least one year.
"The Newgen Results Program is a proven value to dealerships, based on our current return on investment analysis. Generating repeat vehicle sales has been an ongoing objective for Newgen - one that has the potential to substantially improve that return. This study is extremely encouraging, and we intend to conduct other studies like this with our dealerships in the future." said Jerry Benowitz, Newgen's Chairman, President and CEO. "With the addition of this data, and the new products Newgen recently announced, we are uniquely positioned to offer our dealership customers a measurable competitive advantage. We believe the results of this survey will be pivotal in our future sales efforts."
About Newgen Results Corporation
Newgen is a database management and technology leader in the service arena of the automotive industry. The company provides owner loyalty and fixed operation solutions to automotive dealers and manufacturers.
Newgen's expertise in database marketing and customer retention services combined with customer service and in-depth knowledge of service department operations provides a platform to deliver highly targeted and customized solutions to the automotive community. Since the beginning of 1996, Newgen has grown its customer base from 177 dealerships to over 2,300 dealerships. The company currently solicits over five million vehicle owners.
Newgen's products and services are designed to attract more vehicle owners, more often to automotive dealerships. This process promotes customer loyalty and increases customer satisfaction with the dealership while driving increased revenue for the dealer. Vehicle owners benefit by knowing that a well-maintained vehicle can enhance vehicle resale values and the overall driving experience. In addition, this process also provides automotive dealerships the ability to effectively differentiate themselves from their competition through improved parts and service operations. 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.