CarMax Selects Newgen to Drive Service Revenues
16 November 1999
CarMax Auto Superstores Inc. Selects Newgen to Drive Service Revenues; Auto Superstore Pioneer to Implement Results in 14 Locations
SAN DIEGO--Nov. 16, 1999--Newgen Results Corp. (NASD:NWGN), a database management and technology leader for the automotive industry, today announced that CarMax(R) Auto Superstores Inc. will implement Newgen's RESULTS customer relationship management system to maximize sales and service opportunities at its superstores nationwide.The one-year corporate agreement will begin with 14 superstores and can be expanded to include additional CarMax stores and other Newgen services at anytime.
Newgen RESULTS is a complete customer relationship management system that builds loyalty and retention within an automotive dealership's existing customer base, driving additional revenue and increasing dealership profitability. Because of its measurable impact on increasing dealership revenues, RESULTS has been successfully implemented in more than 2,500 dealerships nationwide in the past five years.
CarMax pioneered the auto superstore concept in 1993 and is everything the traditional car buying experience is not. The company offers low, no-haggle prices; a broad selection of top-quality used and new vehicles; quality guarantees; customer-friendly service; and dependable, quality repair service throughout the buying experience. By implementing RESULTS, CarMax plans to supplement its current customer relationship strategies and simultaneously enhance the purchase, service, sales and repurchase profit cycle.
"The RESULTS program will give us the ability to enhance our relationship with customers and provide additional services," said W. Austin Ligon, president of CarMax. "We chose Newgen because of the company's extensive experience in customer retention technology and proven results in the industry."
"We are extremely pleased to partner with a national auto retail chain such as CarMax and build on their strong relationship with customers," said Jerry Benowitz, Newgen chairman, president and chief executive officer. "CarMax's innovative customer buying experience is a perfect complement to our RESULTS system. By maintaining the connection with customers, the RESULTS system brings them back to the superstore for more services."
About Newgen RESULTS
RESULTS is the foundation for Newgen's total customer relationship management system that enhances a consumer's experience with an auto dealership. Beginning just after purchase, extending through the entire ownership cycle through re-purchase, RESULTS provides a sophisticated system of service/purchase reminders that builds customer loyalty and results in increased customer visits. By attracting more vehicle owners to automotive dealerships, RESULTS enhances customer satisfaction while helping to drive increased revenue for the dealer.
About Newgen Results Corp.
Newgen is a database management and technology leader for the service arena of the automotive industry. The company provides profit-driven, customer retention and management solutions to leading auto manufacturers and more than 2,500 dealerships nationwide, currently soliciting over 5 million vehicle owners.
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.
By attracting more vehicle owners, more often, to automotive dealerships, Newgen's products and services promote customer loyalty and increase customer satisfaction while driving increased revenue for the dealer. For more information, call 800/7NEWGEN or visit Newgen's Web site at www.ngresults.com.
About CarMax Auto Superstores Inc.
CarMax is a subsidiary of Circuit City Stores Inc. and has been revolutionizing the way consumers think about automobile purchases since opening its first store in Richmond, Va., in 1993. CarMax operates 37 locations, including 32 used-car superstores and 19 new-car franchises. For more information, access the CarMax Web site at www.carmax.com(SM).
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 of future contracts for 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, performance results of Newgen's new and existing products 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) and in the company's most recent quarterly report in Form 10-Q, each as filed with the Securities and Exchange Commission.
This release also contains forward-looking statements related to CarMax. These statements are subject to risks and uncertainties, including, but not limited to, risks associated with the development of new business concepts and risks associated with year 2000 issues. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the SEC filings for Circuit City Stores Inc. .