Newgen to Provide Customer Management Technology to Volkswagen
11 April 2000
Newgen to Provide Customer Relationship Management Technology to Volkswagen of America, Inc. to Boost Service Revenues
SAN DIEGO--April 11, 2000--Bond With Customers and Build Brand Loyalty
Thanks to an exclusive two-year agreement between Newgen Results Corp. and Volkswagen of America, Inc., more than 1,000 Volkswagen and Audi dealers in the United States and Canada will be able to participate in a direct mail promotion and teleservice system with a proven track record for enhancing customer retention and brand loyalty.
Volkswagen of America chose Newgen's service-oriented RESULTS Customer Relationship Management (CRM & e-CRM) technology in recognition of the industry's growing awareness that CRM is the most cost effective way to keep customers coming back to a specific dealership for service and new car sales.
"This endorsement demonstrates Volkswagen's confidence in the benefits of the RESULTS system," said Gerald L. Benowitz, chairman, president and CEO of Newgen Results Corp. "Working hand-in-hand with Volkswagen, Newgen will further support the efforts of Volkswagen dealerships to enhance the total ownership experience for customers."
Both Newgen's RESULTS CRM and e-CRM systems are marketing solutions that start when a customer makes a purchase and extends through the entire ownership cycle of service/warranty to the next purchase. The RESULTS CRM process begins with data purification to remove data errors. Newgen RESULTS then helps dealers promote customer retention through timely and accurate dissemination of information via e-mail, letters and teleservice activity. In the process, critical marketing dollars are saved and a branding relationship is created with the customer.
Newgen's RESULTS system will replace the mail-only service reminders provided to Volkswagen of America by Computer Care, a division of ADP Dealer Services that Newgen acquired in November 1999.
The Power of Newgen's RESULTS
Newgen's studies indicate that dealers earn an average of over $8.00 of gross profit for every $1 spent on Newgen's services. Other data collected by Newgen show that:
-- Twice as many customers visit a dealership when solicited by
Newgen.
-- Newgen-solicited customers visit a dealership three times as often
as unsolicited customers.
-- Newgen-solicited customers spend 2.5 times more money than
unsolicited customers.
-- Newgen-solicited customers are three times more likely to purchase
a new vehicle from the dealership.
This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about the benefits of new and existing products and business relationships. 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 the Company's ability to satisfy Volkswagen of America and its dealerships, rapidly changing product requirements, the ability of the Company to develop and market new 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 Annual Report on Form 10-K for the year ended Dec. 31, 1999 as filed with the Securities and Exchange Commission.