AutoAlert Increases Dealer Profits – A Case Study

Auto Alert logo pic AutoAlert, Inc., is a software-as-a-service company that works with its client base of thousands of U.S. automobile dealers to enhance its gross profits by providing targeted consumer marketing and lead-generation data. Recently acquired by the Bay Area middle-market private equity firm HGGC, LLC, the company realized approximately $700 million in gross receipts in 2013 through hundreds of thousands of transactions. Based in Irvine, California, AutoAlert holds several patents identifying its enhanced marketing services and processes.

AutoAlert’s portfolio software helped Paragon Honda-Acura in Queens, New York, to complete sales of close to 100 additional units a month in 2011. The company’s software product provided targeted information on the dealer’s existing customers that indicated which ones might be most receptive to new purchases.

The software system analyzed data that included the level of current consumer equity in a vehicle, existing mileage, terms of lease, and warranty descriptions. The result: new prospect data on pre-selected customers distributed over several marketing categories that then assisted the dealer in boosting sales while keeping costs low.

After receiving the AutoAlert data, Paragon staff started calling prospects each morning, eventually handling some 7,000 new leads. During the period studied, the dealer estimated that about 1,000 of its sales each year resulted from working with AutoAlert.