Newgen to Provide Customer Relationship Management Technology
7 August 2000
Newgen to Provide Customer Relationship Management Technology to Support Volvo Cars and Retailers; Two-year CRM Implementation Expected to Boost Volvo Customer Loyalty
Business Editors/Automotive WritersSAN DIEGO--Aug. 7, 2000--Thanks to a two-year agreement between Newgen Results Corporation (NASDAQ NM: NWGN) and Volvo Cars of North America, 340 Volvo Retailers across the country will be able to participate in a direct mail and teleservice system with a proven track record for enhancing customer retention and brand loyalty. Volvo 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 Retailer for service and new car sales.
"The RESULTS modeled system will be the core element of the Volvo - Owner Target System whose express mission is to help Retailers retain customers by enhancing various aspects of the ownership experience," said Matthew Falcone, business development specialist, Aftersales Business, Volvo Cars of North America. "We expect RESULTS to boost service and parts revenues, but we also believe it can extend the brand loyalty many Volvo owners already experience and increase that loyalty at a specific Retailer. Recently, we were delighted to launch a National Co-op program for our Retailers which will help fund up to 50 percent of the investment in this powerful CRM system."
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 in dealership records. Newgen RESULTS then helps dealers promote customer retention through timely, targeted e-mail, letters, and teleservice activity. In the process, critical marketing dollars are saved, and a branding relationship is created with the customer.
The Power of Newgen's RESULTS
Newgen's studies indicate that dealers earn an average of over $8 of gross profit for every $1 spent on Newgen's services. Other data collected by Newgen shows 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. |