Newgen Leads Market for Customer Relationship Management Services for Automotive Industry; Customers Include 6,500 Dealerships and Major Auto Manufacturers
13 December 1999
Newgen Leads Market for Customer Relationship Management Services for Automotive Industry; Customers Include 6,500 Dealerships and Major Auto Manufacturers
SAN DIEGO--Dec. 13, 1999--Newgen Results Corp. today announced that, with the acquisition of ADP's Computer Care division and expansion of e-CRM services, it is continuing to advance its position as a leading provider of Customer Relationship Management (CRM) technology for the service sector of the U.S. retail automotive industry.Newgen currently supports 6,500 auto dealerships nationwide and maintains relationships with leading automotive companies, including Ford, Mitsubishi, Volvo, Audi, Acura, BMW, Volkswagen, General Motors, AutoNation and CarMax Auto Superstores.
Newgen's RESULTS system builds loyalty and retention within an automotive dealership's existing customer base, driving additional revenue and increasing dealership profitability. On average, Newgen-solicited customers come to a dealership three times as often over the course of a year as unsolicited customers, and dealers yield $8 of gross profit for every $1 spent on Newgen services.
The RESULTS system employs a unique closed-loop strategy that starts when a customer makes a purchase and extends through the entire ownership cycle of service/warranty to the next purchase. The system also deploys a sophisticated database purification technique that focuses customer retention activities on the most active customers.
"Using Newgen's services has allowed me to build a strong relationship with my customer base of over 5,000 people," said Jack Powell, owner of Jack Powell Chrysler in Escondido, Calif. "They deliver personal communication on a timely basis, concurrent with customers' servicing needs. Newgen clearly knows what it takes to make a service department work. I'm confident that the company will apply the same successful techniques to the Internet."
With its new e-Service division, Newgen is combining traditional CRM and new online e-CRM services for maximum effectiveness. Email reminders, service reservations and satisfaction surveys for dealership customers together with new online database access and promotions services for dealerships will help dealers use the Internet to extend their relationship with customers beyond traditional marketing methods.
In collaboration with ADP Dealer Services Group, a leading provider of integrated computing solutions to auto and truck manufacturers, Newgen is incorporating its successful CRM solutions in new ADP e-business applications for the automotive market.
In addition, Newgen is integrating one-to-one marketing techniques pioneered by the Peppers and Rogers Group into its e-Services efforts to capitalize on the Internet's strength as a medium to deliver customer-focused strategies.
"Our knowledge of service department operations, the success of RESULTS and our strong dealership relationships give us the tools to provide e-CRM solutions that increase dealership revenue," said Jim Roche, senior vice president of e-Services. "We also have incorporated a way for dealerships to easily harness the power of the Internet for marketing and service operations, whether or not they are using it for those purposes now."
"Newgen understands the true value of one-to-one marketing and how it will help dealerships be more successful," said Bob Dorf, president of Peppers and Rogers Group. "We are pleased to be helping Newgen as it helps auto dealers implement one-to-one marketing strategies via the Internet."
About Newgen Results Corp.
Newgen Results Corp. is a leading customer relationship management provider that combines expertise in database marketing and customer retention with in-depth knowledge of service department operations to deliver highly targeted and customized solutions to the automotive community. For more information, call 800-7NEWGEN or visit www.ngresults.com.
About Peppers and Rogers Group
Peppers and Rogers Group was founded in 1993 by internationally acclaimed authors Don Peppers and Dr. Martha Rogers. Bob Dorf is the firm's president. The Stamford, Conn.-based firm one of the fastest-growing private companies in the United States, and was named in 1998 to the Inc. 500 list of rapidly expanding private firms. They have offices in San Mateo and Los Angeles, Calif., Mexico, Europe, South America, and South Africa.
Peppers and Rogers Group provides leadership, education and consultative services that help clients reengineer their sales and marketing processes, resulting in increased customer loyalty, maximized share of customer and improved profit margins. For more information, contact Kathryn Kavicky at Peppers and Rogers Group via e-mail: kkavicky@1to1.com or by phone at 203/316-5121.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about the benefits of new relationships with automobile manufacturers, the benefits of new and existing products, the benefits of relationships with ADP and consulting firms, 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 the Results and other programs by dealers, the ability of the Company to satisfy dealers, the risk of increased customer concentration as a result of manufacturer contracts, the ability to maintain a positive working relationship with ADP, 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 Registration Statement on Form S-1 (No. 333-62703) and in the Company's most recently filed quarterly report on form 10Q, each as filed with the Securities and Exchange Commission.