Motors & Drives Information

such as BMW and Ford maximize customer contact, branding

and loyalty programs with millions of customers -

Newgen Results Corporation (Nasdaq NM: NWGN) today announced that its Customer Relationship Management (CRM) representatives now have regular contact with more than seven million of the nation's car owners on behalf of automotive dealerships who use Newgen's CRM systems.

Newgen's RESULTS system targets those areas where automotive dealers can benefit: service, parts and repairs. Through a process that begins when a buyer purchases a vehicle, the RESULTS system incorporates direct mail (such as service reminders, e-mail, and promotion letters) with teleservice follow-up to build customer loyalty that will extend over the car buyer's entire lifetime.

Auto manufacturers such as BMW and Ford employ Newgen's RESULTS program to help franchise dealers to prosper, not only by the sale of vehicles, but also in servicing. In addition, the more service that is performed by the dealership community, the more OEMs profit from the sale of manufacturer-made parts. Lastly, and most importantly, customer satisfaction with a dealer creates loyalty to the brand. Good service is an indirect way to sell additional vehicles.

According to The Gartner Group, by 2004, automotive dealers who have not shifted their business focus to retaining and extending customer relationships will cease to exist (0.8 probability). Gartner concludes that "OEMs and dealers must begin the collaborative planning process to reposition their value proposition to encompass the entire consumer automotive experience"--a process where Newgen has achieved success over its history.

According to Don Romoser, manager, Aftersales Marketing and Communications for BMW, "The adoption of CRM systems like RESULTS marks a change in our marketing philosophy. Traditionally, auto manufacturers have looked at marketing as selling cars--but we are now moving to the CRM concept, which is really the true, pure form of marketing. We as the manufacturer must be the leader in CRM. It's a long-term venture, the benefits of which are sometimes clearer to us than to the dealer, because the payback is not today, but three or four years down the line," Romoser added.

# posted by Medical Information : 2:51 AM