Who Takes Over When AI Hands Off Your Leads? GM Profit Jumps, Ford Recall (10.20.26)

WEBVTT
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Is your team turning conversations into showroom traffic?
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Plus, better communication starts with better leadership.
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All that important from the CBT Live.
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Hey everyone, welcome into another edition of CBT Live, right here at the CBT Automotive Network.
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Today is Tuesday, October 20th.
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I'm joined by my lovely assistant.
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Assistant.
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No, not an assistant.
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Partner.
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You're like a magician or you're like Bridget Fitzpatrick, the one and only.
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I am Bridget Fitzpatrick.
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Thank you so much for sometimes I feel like it.
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Trust me.
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That's right.
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We're so happy to have you all with us today.
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Yes.
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We have got a great show for you today.
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Duran Cage, founder and owner of Cage Auto, joins us in studio to talk about AI and your dealerships, leads, and who takes over when AI hands off.
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That's right.
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AI.
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Imagine that.
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Another discussion about AI.
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Supposedly this thing's gonna stick around.
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I think it's gonna stick around for a little while, yeah.
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Yeah.
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It's so important to talk about AI as much as we do.
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I feel like an AI day is like 10 years.
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You know what I mean?
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There's constant changes and updates and new things and new platforms and all these.
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So it is very important to run our dealerships, run our lives, run everything.
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It does pretty much.
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So it's great.
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Hey, by the way, we'd love for you to be part of our conversation today.
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So drop your uh questions, comments, suggestions in our chat um for you know our guests, our for us, you know, whatever you want to talk about, you know, drop it in.
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We want to hear from all of you.
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And uh, we know that uh, you know, we we love hearing from everybody, and uh, we want to know if you enjoy CBT News.
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That's right.
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And if you do, be sure to like, follow, and subscribe.
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If you're already a subscriber, thank you very much.
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We appreciate all of you.
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That's right.
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We love your support.
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Keeps us going.
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So we have a few things to get to today.
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Before we do, I would like to thank our sponsor.
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Who's that, by the way?
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That would be the Joe Verdi group.
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Oh, the Joe Verdi Group.
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The industry leader for online sales training.
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Yes.
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They do an incredible job.
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They do a great job.
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They taught me.
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They did, and they did a really good job.
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I think you're pretty good.
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So good job.
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From salesperson to dealer principal, nice.
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I owe it to Joe Verdi.
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Hey, that's right.
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Shout out there.
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I love it.
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No, they're just a great, great organization, great team.
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Like we said yesterday, some of the nicest people you'll ever work with.
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I do we we've been working with them for 14 years, and it's just amazing.
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That's right.
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And their stuff, man, I'm I'm telling you, when I bring uh Sean on to when my conversations with him, like all we it's funny because we laugh about it.
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All of this stuff is still going on in dealerships.
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You know, this training is great.
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So with content that covers every step of the sales process, your sales team will sell more units with better gross and greater customer satisfaction.
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Get your new hires up to speed fast, keep your entire team sharp, and sell more cars with the Joe Bertie group.
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Thank you.
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Joe Bertie Group.
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Dealerships.
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You can't, I don't want to say you can't spend enough on sales training.
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Maybe you can, but you got to spend something.
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You know, I've I talked to so many dealers and I say, What did you spend last month on training your salespeople and your managers?
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Sometimes I get deer in the headlight look, you know, like, um what do you what do you mean?
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How much did I spend?
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I have I have managers for that.
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No, no, no, no.
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Managers are not necessarily good trainers.
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Yeah.
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And uh they haven't been taught on how to train.
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Sometimes they don't know what to train on specifically.
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And uh you gotta bring in the pros.
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Joe Verdi is that pro that I'm talking about and his team.
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So we've got a few news stories to go over.
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Okay.
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So General Motors reported stronger quarterly earnings this morning with its large pickup business helping drive those results.
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GM brought in 50 billion in revenue during the third quarter.
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Adjusted earnings before interest in taxes reached 4.1 billion, up nearly 22% from a year ago.
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Wow.
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That's pretty good.
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That's that's very good.
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Yes, and North America was part of that.
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The company's adjusted profit margin in North America improved to 8.7% compared to 6.2% a year ago.
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So that's great.
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That's fantastic.
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Way to go GM and GM dealers, all without a hybrid.
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Right?
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I know.
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So I know.
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You say what you want.
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They're doing pretty good.
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That's right.
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Uh so a Ford recall that was reported earlier this month is getting attention again this morning, and it affects more than 102,000 trucks in the United States.
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Wow.
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Yes, it involves dashboard gauges that may give drivers inaccurate readings.
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According to Reuters, citing the National Highway Traffic Safety Administration, the speedometer and tachometer can become stuck or move erratically.
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Oh wow.
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So certain 2025 to 2026 F-series trucks are included, ranging from F-150s to super duty and larger commercial models as well.
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You know what I'm hearing, dealers.
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Big fixed stops month.
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If there's a recall like that in place, we know recalls mean money.
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That's right.
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That's right.
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I I've you know what's funny is that I've gone onto into dealerships with our car cars from time to time and for a recall.
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Okay.
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Now listen to me, dealers, because you'll you'll get a kick out of this.
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You'll also want to kick somebody uh in the butt on this.
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You go you somebody brings the vehicle in on a recall, okay?
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And you go, hey, I'm prepared for the recall.
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And they go, okay, great, great.
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And sign you up, they get the recall done, and uh, and then they bring the car.
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You you know, either you wait or you come back later that day.
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No walk around, no suggestion on anything else.
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The vehicle I'm driving in needs tires.
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They never mention that to me.
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They never mention the next service.
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They just go, okay, Mr.
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Fitzpatrick, your recall, you're all set, you're ready to go.
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It didn't cost you anything.
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Okay, and it's a recall and it's done.
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Is that really the best we can do on a recall?
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I'm coming in, I've got this car, it hasn't been serviced in a while, and we're not getting a walk around, we're not getting a suggestion, we're not getting a tire present, we're getting nothing.
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Okay.
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So did they do the recall?
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Yeah, they did the recall, but you dealers know what I'm talking about.
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If that's happening in your service drive, shame on you.
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Because that the recalls mean huge dollars.
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Maybe that's even why OEMs do it, but uh, it means huge dollars to the dealer.
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Do not waste this opportunity uh for for you know recalls uh for those people coming in to do a walk around, to make those suggestions, to sell those tires, to sell those services.
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And and you're really doing a huge service to the customer to say, well, while it's in for the recall, maybe you can do these other items that need to be done on the vehicle.
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So I have a question.
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Go ahead and hopefully you know the answer to.
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For those dealers doing mobile service, will they go, will they do mobile service for recalls?
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Yes, they uh yes, not all recalls, it depends on the recall.
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But um, but from what I'm told by dealers that yes, that that is a perfect scenario.
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Yeah, that's good.
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Yeah, okay.
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But uh, but please, dealers, I mean, when you get a recall, especially you got a hundred thousand Fords out there, um, that's a huge opportunity to sell uh uh upsell those services.
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Yeah, you know?
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So that's my sermon on that this morning.
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No, it's true though.
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Come on.
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Tuesday morning sermon.
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Come on.
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Okay, show this to your service director if he's not watching already.
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So finally, one more story here.
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There were a couple of dealership transactions that I wanted to mention, one in North Carolina and the other in Southern California.
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Dobbs Family Automotive has acquired Fields Mazda and Fields Chrysler Dodge G Ram in Asheville from Fields Auto Group.
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The acquisition brings Dobbs to 14 dealership and marks its entry into the Asheville market.
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Fields says the sale allows them to sharpen its focus on its luxury dealerships in that market, including BMW, Mercedes, and Land Rover.
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And Kerrigan Advisors represented Fields in the transaction.
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Go Kerrigan Advisors.
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And then meanwhile, in Southern California, Hendrick Automotive Group has sold Volkswagen of Marietta.
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Okay.
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And what do they know about Volkswagen?
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Why are they selling Volkswagen?
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And it's related real estate to Spreen Automotive Group.
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Okay.
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That transaction closed yesterday, and um the Presidio Group advised Hendrick on that sale.
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Presidio group.
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Good.
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Another good organization.
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Right here, right here in uh our hometown.
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Right over here.
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They're in Peachtree Corners, we're in Peace Tree Corners.
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That's right.
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That's right.
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So that's always nice.
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They should buy us lunch more, you know.
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Maybe they're listening.
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Maybe they're listening.
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I don't know.
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They should buy us lunch more when we see you.
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All right, so before we get to hear the team laughing.
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I know.
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Um to Durant.
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Oh, yeah, by the way, yeah.
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Um uh the the author of this book, this incredible book, this is a New York Times bestselling author, by the way, um, Andrew La Civita.
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Um, he I just did an interview with him, uh, which is on, I think, both CBT as well as our sister station, asbn.com, stands for America's Small Business Network.
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Uh check that out at asbn.com.
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But this is a great interview that I did um with Andrew about his new book, and we talked about the proper way to communicate with your team.
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Uh sometimes you've got bad news that you've got to communicate with them, but you you know, you're looking for buy-in from the team, you're selling them on an idea, what have you.
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Um he's written an incredible book about this very topic and how to communicate when you are a leader to your team.
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So that we're gonna we're gonna show a little excerpt of that interview a little bit later.
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But uh great book.
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I highly recommend you get it, uh, Signal Strength, master every communication skill to speak, write, and inspire your way to the top.
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Great book.
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Yes.
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So while you're here at CBT News, or while while you go to CBT News, be sure to sign up for our newsletters.
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Yes.
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You can get all the great conversations that you see here and more.
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And be sure to like, follow, and subscribe to your favorite social media channels while you're there.
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Yes.
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And by the way, subscribe uh like and subscribe if you're watching on one of these social media channels, because I think we're right now on like six different social media channels.
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Yeah.
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Like I said.
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Oh, I thought you were talking about the newsletter.
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No, well, okay, that's okay.
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We want to make sure like that.
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That's gonna cost me guys.
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Anybody, does anybody uh any of you guys out there not listen, always always listen to your wife when she's speaking, and then she she checks you out later and you she's like, Yeah, I told you that already.
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That happens every now and then with Bridget and I.
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It's okay.
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We had Carl Brouwer on yesterday, and he was a great marriage counselor for a little while when we decided what car we were gonna be looking at.
00:10:14.799 --> 00:10:20.159
Um maybe we'll share that process a little bit as we get closer to our journey for a new car.
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What were you saying?
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No, I'm kidding.
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Um also uh we are gonna be at the Use Car Week, November 16th through the 19th.
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So be sure to register.
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If you are planning on attending, it's a great event.
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Um it's gonna be in San Diego, so we're looking forward to that.
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We're gonna be doing the live show right from the show floor, yeah, as well as bringing you even more interviews uh from the event and all the coverage that you'll need.
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But be sure to check it out.
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Great event.
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As I've said before, you heard me say it before.
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If uh it's gonna be a big used car year ahead in 2027, and uh you gotta be prepared for it, whether it be how to get them, how to sell them, how to recon them, how to finance them, how to maybe even how to repo them if you're on in a buy here, pay here situation.
00:11:05.759 --> 00:11:06.480
That was always fun.
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I spent a couple of months uh in my career having to do that for a dealer that had a buy here, pay here.
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That was a real that was a real education.
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But I have all the respect for those that do that successfully that uh you gotta have the right stomach for it.
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But uh but anyway, used car week, it's all found right there in San Diego.
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These guys do a first class job.
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You can thank me later, but make the reservation now.
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We'll see you out there.
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Stop by and say hello.
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Who knows?
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Maybe it'll be on uh we'll interview you.
00:11:34.000 --> 00:11:34.879
So we'd love it.
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Yeah, so coming up next, we've got Duran Cage with Cage Auto.
00:11:37.840 --> 00:11:39.679
But before we get to Duran, we're gonna Duran, by the way.
00:11:39.759 --> 00:11:40.000
I'm sorry.
00:11:40.159 --> 00:11:40.559
You said Duran.
00:11:40.960 --> 00:11:42.080
It is, and I just had this conversation.
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Like Duran Duran the name, Duran Duran.
00:11:44.320 --> 00:11:44.720
Duran Duran.
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I know.
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Sorry.
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Sorry, Duran.
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You think we can get Duran Duran?
00:11:47.279 --> 00:11:47.759
That'd be kind of cool.
00:11:48.320 --> 00:11:49.759
But right now we just have one Duran.
00:11:50.639 --> 00:11:50.960
Right.
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We have the Duran.
00:11:52.720 --> 00:11:53.279
That's right.
00:11:53.919 --> 00:11:59.039
Duran will be joining us next, but before he does, we're going to play this clip with Andrew La Civita.
00:11:59.200 --> 00:12:00.080
Yeah, check this clip out.
00:12:00.159 --> 00:12:01.759
You're gonna you're gonna really like this.
00:12:01.840 --> 00:12:03.440
He's he's a great, great book author.
00:12:03.600 --> 00:12:04.879
So check it out.
00:12:05.360 --> 00:12:11.440
What's the best way to communicate a difficult decision that employees may disagree with?
00:12:12.240 --> 00:12:13.919
Oh, great, great question.
00:12:14.159 --> 00:12:29.919
So I think anytime you're communicating anything, positive or negative, here's what the shared goal is, here's what we're trying to accomplish, here's what we need, here's how we're going to benefit, and here's what we're going to do, and here's my support and how I'll give it to you.
00:12:30.080 --> 00:12:36.480
So, whatever, whatever the message is, especially if it's tough, people are adults, they they get it.
00:12:36.720 --> 00:12:52.960
But I think the the biggest complaint that employees or staff have when you have some difficult decisions, or maybe you don't take into account their input or anything that they might feel is rough, it's usually because you haven't complained or uh you haven't communicated to them with the rationale.
00:12:53.440 --> 00:12:53.679
Good point.
00:12:53.919 --> 00:12:56.720
So if you can get that out early, I think people get it.
00:12:56.799 --> 00:12:57.440
I really do.
00:12:57.679 --> 00:12:58.480
Yeah, for sure.
00:12:58.799 --> 00:13:03.919
How can leaders make it easier for employees to speak honestly about problems?
00:13:04.159 --> 00:13:09.840
We know we hear a lot about being authentic with your teams and open and uh and honest.
00:13:10.480 --> 00:13:12.639
I think I think you lead by example.
00:13:12.879 --> 00:13:17.840
So actually, piggybacking off what you just asked me about communicating difficult insight.
00:13:18.240 --> 00:13:35.600
If a leader is communicating with his or her staff and is building that trust that I'm being consistent, I'm not mercurial, I'm not hiding things from you, I'm open and honest, and I trust that you will be able to digest the information, the communication, whatever it may be.
00:13:35.840 --> 00:13:41.919
If I'm consistent with you, I think that fosters and creates a more open and welcoming environment.
00:13:42.159 --> 00:14:02.480
It's one thing to say, hey, I have an open door policy, or hey, you can come to me with whatever, but if I'm showing you that I know you can handle this kind of insight or information, it's going to be, it's going to be very likely that I'm going to be able to do it, and I'm going to welcome that from you and really appreciate when you come to me with those kinds of things.
00:14:02.559 --> 00:14:03.600
So it's leading by example.
00:14:03.840 --> 00:14:04.000
Yeah.
00:14:04.159 --> 00:14:06.559
Employees need to feel safe, right?
00:14:06.720 --> 00:14:12.720
I mean, uh they've they've got to feel safe in communicating with their with the leaders of the company, right?
00:14:13.120 --> 00:14:14.320
That's absolutely true.
00:14:14.399 --> 00:14:25.360
And I don't think you can feel any more safer than when you repeatedly do it and you as the leader are consistent in your behavior where there aren't major repercussions.
00:14:25.519 --> 00:14:30.000
You're not right you're not upset with people because they're they're sharing their insight.
00:14:30.159 --> 00:14:38.080
And you're looking for ways, especially if you're getting feedback, whether it's on your performance, your behavior, or direction that the organization should go.
00:14:38.320 --> 00:14:46.879
I think that when you get that kind of insight, I think it's great to have healthy discussion about why you want to implement their ideas or why or why not as well.
00:14:47.200 --> 00:14:47.679
Sure.
00:14:48.399 --> 00:14:50.080
All right, great conversation you had there.
00:14:50.559 --> 00:14:51.360
Yeah, he's he's a great guy.
00:14:51.519 --> 00:14:51.600
Yes.
00:14:52.320 --> 00:14:56.799
You know, the the uh key really to running a successful operation is communication.
00:14:56.960 --> 00:14:57.120
That's right.
00:14:57.440 --> 00:14:58.799
And he nails it, that's for sure.
00:14:59.279 --> 00:15:04.799
And AI is answering your dealership's leads, but what happens when it's time for a human to step in?
00:15:04.960 --> 00:15:07.759
Too often that handoff is where opportunities get lost.
00:15:08.000 --> 00:15:20.480
Here in the studio is Duran Cage, founder and owner of Cage Auto, to break down how dealers can begin align, begin aligning AI, BDC, and sales teams to turn more leads into appointments that actually show up.
00:15:20.639 --> 00:15:22.000
Duran, thank you so much for joining us.
00:15:22.320 --> 00:15:24.080
Bridget, thank you, Jim, thank you.
00:15:24.320 --> 00:15:24.720
Absolutely.
00:15:24.879 --> 00:15:25.840
And this has been fun so far.
00:15:26.000 --> 00:15:27.600
I was laughing, you're funny.
00:15:28.080 --> 00:15:29.279
This is such a great experience.
00:15:29.519 --> 00:15:31.600
So thank you so much for the 24-7.
00:15:33.200 --> 00:15:34.799
Thank you for making the trip into the studio.
00:15:34.960 --> 00:15:36.480
Studio interviews are always the best.
00:15:36.639 --> 00:15:39.200
You know, we don't understand not everybody can do it, but we appreciate you coming in.
00:15:39.519 --> 00:15:39.679
We do.
00:15:39.840 --> 00:15:40.879
Yeah, no, it's been great.
00:15:41.120 --> 00:15:41.440
Awesome.
00:15:42.000 --> 00:15:42.720
So let's get into it.
00:15:42.799 --> 00:15:44.960
So technology is really half of it.
00:15:45.120 --> 00:15:51.200
Once the AI hands off the lead to a salesperson, um, then the human has to take over.
00:15:51.440 --> 00:15:54.240
Where do you see dealers struggling with that handoff?
00:15:54.480 --> 00:15:56.480
Yeah, and is it okay if I start with a little story?
00:15:56.879 --> 00:15:57.120
Absolutely.
00:15:58.240 --> 00:15:59.120
I like telling stories.
00:15:59.200 --> 00:16:02.559
So, and this is real, but I'm gonna change the names and things.
00:16:02.799 --> 00:16:07.759
But what we normally see is let's say a shopper online at night, it's 9.57.
00:16:07.840 --> 00:16:08.000
Yeah.
00:16:08.159 --> 00:16:08.320
Right?
00:16:08.480 --> 00:16:12.080
Young lady gets on there because that's the time that works best for her.
00:16:12.399 --> 00:16:22.720
So at 9.57, she finds this, let's call it a white Tahoe for this description, and she puts in her information online because this is the one that she wants to confirm the availability.
00:16:23.120 --> 00:16:26.240
So, right after she puts in that information, what happens next?
00:16:26.480 --> 00:16:30.720
Right now, in most dealerships, there's an AI assistant that's gonna reach out to her.
00:16:31.360 --> 00:16:34.480
When that AI assistant reaches out, sometimes they set an appointment.
00:16:34.639 --> 00:16:36.480
In this case, in this story, it does.
00:16:36.639 --> 00:16:38.000
So there's an appointment at 10 a.m.
00:16:38.159 --> 00:16:38.720
the next day.
00:16:39.200 --> 00:16:41.039
The customer shows up at 10 a.m.
00:16:41.279 --> 00:16:45.039
the next day ready to see this Tahoe, excited, fire up.
00:16:45.360 --> 00:16:45.679
Sure.
00:16:46.080 --> 00:16:49.440
Salesperson greets the customer, says, Have you ever been here before?
00:16:49.519 --> 00:16:50.240
Do you have an appointment?
00:16:50.320 --> 00:16:53.919
She says, Yes, I have an appointment to look at a Tahoe at 10 o'clock.
00:16:54.159 --> 00:16:55.519
Salesperson says, What?
00:16:55.679 --> 00:16:55.840
Yeah.
00:16:56.080 --> 00:16:56.879
Who did you speak to?
00:16:57.039 --> 00:16:57.759
Yeah, who did you speak to?
00:16:58.000 --> 00:17:00.960
Oh, I spoke to, and I won't say the name of the AI assistant.
00:17:01.519 --> 00:17:07.119
So sales rep walks men, says, Maybe that's the BDC team, because he's never heard of this name before.
00:17:07.279 --> 00:17:07.519
Right.
00:17:08.000 --> 00:17:10.880
He goes to the BDC, said, Hey, did you talk to this customer?
00:17:11.119 --> 00:17:12.400
And they said, No, no, no, no.
00:17:12.480 --> 00:17:14.400
That was the AI that set the appointment at team.
00:17:14.960 --> 00:17:15.680
Oh, okay.
00:17:15.839 --> 00:17:19.200
So he goes back out to the customer and says, Oh, you communicated with the AI.
00:17:19.279 --> 00:17:21.359
And so what vehicle were you looking at?
00:17:21.440 --> 00:17:22.240
You said a Tahoe?
00:17:22.400 --> 00:17:22.640
Oh boy.
00:17:23.359 --> 00:17:24.240
So we'll pause there.
00:17:24.319 --> 00:17:24.640
Yeah.
00:17:24.799 --> 00:17:26.160
What's the customer feeling?
00:17:26.319 --> 00:17:26.960
Oh, totally.
00:17:27.759 --> 00:17:28.559
Totally used.
00:17:28.960 --> 00:17:30.880
Yeah, disconnected from the dealership.
00:17:31.359 --> 00:17:32.880
And also that it wasn't real for me.
00:17:33.039 --> 00:17:33.200
Yeah.
00:17:33.440 --> 00:17:34.240
That it wasn't real, right?
00:17:35.119 --> 00:17:41.359
Because they could have felt as though I thought I was communicating with a real person because AI is becoming that much more sophisticated.
00:17:41.440 --> 00:17:41.599
Yeah.
00:17:41.759 --> 00:17:41.920
Right?
00:17:42.240 --> 00:17:42.480
Yes.
00:17:42.559 --> 00:17:43.599
And then there's another side.
00:17:43.680 --> 00:17:48.880
So I'm gonna give you a variable to that story that we're seeing more common than not, because I post about this a lot.
00:17:49.200 --> 00:17:52.720
Is that now everybody wants to own this appointment the next day.
00:17:52.880 --> 00:17:53.119
Yeah.
00:17:53.279 --> 00:17:59.839
So what you'll see happen is there'll be an automated message that comes in at maybe 8, 8:30 for the young lady.
00:18:00.000 --> 00:18:07.599
Then there'll be a BDC if they have that calling to confirm, then maybe a salesperson reaching out as well, and then a manager confirmation.
00:18:08.480 --> 00:18:18.240
So what we're seeing on average is about four touches, four different names when we're mystery shopping and doing this within the first 72 hours of a customer engagement.
00:18:18.480 --> 00:18:22.480
So I think, and it's funny, the the book that you were just talking about, I think it was Andrew.
00:18:22.559 --> 00:18:27.359
Yeah, yeah, it plays right into what we're talking about because we're really not talking about AI today.
00:18:27.519 --> 00:18:27.680
Right.
00:18:27.839 --> 00:18:28.799
We're talking about communication.
00:18:28.960 --> 00:18:29.440
Yeah, right.
00:18:29.680 --> 00:18:38.880
That's where the barrier is because this is nothing new before AI, this would have been the communication between a BDC team, the sales team, and the leadership.
00:18:39.279 --> 00:18:47.839
It's just now there's this fourth layer, and I think a lot of dealerships are trying to figure out where, how do we make this all make sense so we can protect the customer experience?
00:18:48.160 --> 00:18:49.599
Right, yeah, no question about it.
00:18:50.079 --> 00:18:59.759
Um when an AI tool uh qualifies a lead, um, answers questions or gets a customer interested in a vehicle, who should own that lead next?
00:19:00.079 --> 00:19:01.440
I mean that that's kind of really the question.
00:19:01.599 --> 00:19:04.480
Is the BDC the salesperson or someone else in the dealership?
00:19:04.799 --> 00:19:07.200
I think it depends on the the staffing of that store.
00:19:07.440 --> 00:19:14.559
So if they have a BDC team and that BDC's role is to be the initial outreach, then they should own that.
00:19:14.960 --> 00:19:22.640
But if the BDC team is going to own that and it's going to end up with a salesperson, then they should be transparent in that.
00:19:22.799 --> 00:19:24.079
Like let the customer know.
00:19:24.240 --> 00:19:27.200
I think what most of us want to know as customers is what's the next step?
00:19:27.359 --> 00:19:27.519
Yeah.
00:19:27.839 --> 00:19:29.359
Like what's actually gonna happen?
00:19:29.519 --> 00:19:34.880
It's okay to have these different names involved, but just clarify who's gonna do what.
00:19:35.279 --> 00:19:40.799
So it can be the BDC team, and then the stores that don't have BDC, this should be the sales rep.
00:19:41.200 --> 00:19:46.400
But I think the the opportunity here is you have to have somebody that's reviewing this all the time.
00:19:46.799 --> 00:19:50.960
You know, this is that manager we call it save a save an experience, save a deal review.
00:19:51.039 --> 00:19:56.319
Yeah, these are the things that we now have to look at, not just car deals that we missed, we gotta look at the experience.
00:19:56.640 --> 00:19:56.720
Right.
00:19:57.039 --> 00:19:57.119
Right.
00:19:57.359 --> 00:19:57.599
For sure.
00:19:57.839 --> 00:19:58.000
Yeah.
00:19:58.480 --> 00:20:09.759
So how how would you recommend a dealer, what kind of process should be taken for those dealers that do have the BDC to create to alleviate that gray area that that's happening there?
00:20:10.160 --> 00:20:14.960
Yeah, I think it starts with the communication of let's let's get our playbook in line.
00:20:15.279 --> 00:20:19.839
Okay, so when a customer puts in a request, who's gonna do what and when are they gonna do it?
00:20:20.240 --> 00:20:28.799
Another place that we've got to look at is within our CRM, and then with the AI partner that we're using, we have to, you know how I talked about the automated reminders.
00:20:28.960 --> 00:20:37.039
Well, you'll sometimes have the AI sending appointment reminders, and then you'll have the human sending the appointment reminders, and you have at the CRM.
00:20:37.359 --> 00:20:46.960
So we have to make sure that we're looking at what is the AI's tool, like what's their um, what's the word I'm looking for, like their process, their flow, right?
00:20:47.119 --> 00:20:50.240
And then we got to look at our CRM and then look at our human element.
00:20:50.319 --> 00:20:55.759
And so once we get those three parts laid down, then it becomes easy on who's gonna own what.
00:20:55.920 --> 00:20:56.079
Right.
00:20:56.720 --> 00:21:02.160
I think ultimately, again, that champion, whatever title we want to give them, this could be your BDC manager now.
00:21:02.400 --> 00:21:11.359
I see the BDC manager's role evolving much more into that person that slows down to kind of set the bar for this and they're inspecting that.
00:21:11.599 --> 00:21:11.759
Right.
00:21:11.920 --> 00:21:12.000
Right.
00:21:12.160 --> 00:21:21.200
And then I think the BDC teams, I think over time, we're gonna see their role evolve more into almost like a trainer to that digital assistant.
00:21:21.279 --> 00:21:21.440
Yeah.
00:21:21.680 --> 00:21:23.920
Because you're gonna have to always refine it.
00:21:24.079 --> 00:21:26.400
Like you talked about recalls just a second ago.
00:21:26.960 --> 00:21:30.480
I see AI agents at some point helping out with the recall space.
00:21:30.559 --> 00:21:30.960
Yeah, for sure.
00:21:31.200 --> 00:21:34.799
But they need to be trained on how to communicate to the certain customers that are in the database.
00:21:35.200 --> 00:21:35.279
Right.
00:21:35.519 --> 00:21:44.960
How do you or what do you suggest to dealers when that customer comes in and realizes that, okay, this has been an AI, or maybe doesn't realize yet.
00:21:45.039 --> 00:21:52.160
Who wants to break the news to that customer that thinks, oh, so Susie, this AI person isn't really a real person?
00:21:52.319 --> 00:21:57.119
This is somebody that I have, you know, I I kind of feel like, oh wow, I've just been duped here.
00:21:57.200 --> 00:21:59.839
You know, I thought I was, I thought there really was a Susie, you know, that was keeping.
00:22:00.160 --> 00:22:00.880
Communicating with.
00:22:01.039 --> 00:22:11.759
How do you do that successfully and still, you know, maintain you know a good relationship with the customer because and so that they don't feel so, you know, so duped.
00:22:12.079 --> 00:22:14.640
I would say start with transparency with the AI.
00:22:14.720 --> 00:22:19.759
You know, what's wrong with the digital assistant saying that it is an AI, a digital assistant?
00:22:19.920 --> 00:22:20.160
Okay.
00:22:20.319 --> 00:22:32.160
Because if the customer knows right off the bat that that's who they're dealing with, that it's a virtual assistant, it's not a human, okay, then it it takes care of that because most of us probably are using some kind of AI tool already.
00:22:32.319 --> 00:22:32.559
Yeah.
00:22:32.720 --> 00:22:37.279
So if we're already using an AI tool, it's not that the customer is going to get worried about that.
00:22:37.440 --> 00:22:37.599
Yeah.
00:22:37.839 --> 00:22:38.000
Right.
00:22:38.079 --> 00:22:39.440
And then maybe put a barrier in there.
00:22:39.519 --> 00:22:45.680
If we're concerned in your area or your demographic that customers don't really want that, you know, give that option.
00:22:46.000 --> 00:22:53.200
You know, what's wrong with the AI agent saying, hey, I'm a virtual assistant, you know, I'm here online 24-7 to assist you.
00:22:53.359 --> 00:22:59.119
However, if you'd like to connect with a real person, I'll be more than happy to make sure that they get to you first thing.
00:22:59.359 --> 00:22:59.519
Okay.
00:22:59.920 --> 00:23:02.880
So now that kind of eliminates that, what should we do?
00:23:03.039 --> 00:23:09.680
But I think from a leadership standpoint is if we've got an AI assistant helping us, how can we take the experience to the next level?
00:23:09.839 --> 00:23:10.000
Yeah.
00:23:10.160 --> 00:23:13.039
So this is where I love things like videos.
00:23:13.200 --> 00:23:15.440
You know, can the leader send a video to the customer?
00:23:15.599 --> 00:23:15.759
Yeah.
00:23:15.920 --> 00:23:16.079
Right?
00:23:16.160 --> 00:23:20.160
Or can the company, the dealership, send a video about what's gonna happen next?
00:23:20.400 --> 00:23:29.039
But something that takes that experience to the next level because if we're using technology, then we should have more time to lean into that experience with each customer.
00:23:29.279 --> 00:23:29.759
Yeah, that's true too.
00:23:30.000 --> 00:23:30.400
That's true too.
00:23:30.640 --> 00:23:38.640
So you're saying early on, like as soon as that customer connects with that store on an AI basis, let them know that, hey, I'm I'm a virtual assistant.
00:23:38.880 --> 00:23:45.279
Okay, not to make it though, hey, I'm I'm kind of a person slash AI, but let them know right up front.
00:23:45.599 --> 00:23:47.200
Yeah, because look at the best run companies.
00:23:47.279 --> 00:23:56.799
I won't name them, but when you look at global companies, national companies, most of them are very transparent that you are dealing with a virtual assistant, even when it's on voice.
00:23:56.880 --> 00:23:57.039
Yeah.
00:23:57.200 --> 00:24:02.640
You know, they'll explain why they're the voice AI and what they're here to do and what they can solve.
00:24:03.039 --> 00:24:05.119
And I think that's what most people are wanting.
00:24:05.200 --> 00:24:12.720
They don't want to be tricked to where they're thinking that they're talking with somebody and then they're actually not a body at all.
00:24:13.119 --> 00:24:22.000
Yeah, the even the voice is it's getting the it's getting so incredibly uh impressive now and high tech that you it takes a while, you know, that you're talking to them.
00:24:23.920 --> 00:24:24.480
Think about that.
00:24:25.039 --> 00:24:25.599
Think about that.
00:24:25.680 --> 00:24:26.079
Yeah, right.
00:24:26.160 --> 00:24:26.319
Exactly.
00:24:26.720 --> 00:24:28.240
Let me check on that Tahoe for you.
00:24:28.559 --> 00:24:29.039
That's right.
00:24:29.119 --> 00:24:29.279
Yeah.
00:24:29.440 --> 00:24:31.759
So it's getting very tough to determine that.
00:24:32.000 --> 00:24:32.240
It is.
00:24:32.319 --> 00:24:39.200
Do you find most of the AI tools out there do have that option to say, if you'd like to speak to a human, you can do that?
00:24:39.519 --> 00:24:47.039
I would say almost every AI vendor or partner, I should say, that we've seen now is setting it up to where they can, you know, augment.
00:24:47.200 --> 00:24:50.319
You can you can train that agent the way that you want it to sound.
00:24:50.400 --> 00:24:52.240
So it keeps the culture of your store.
00:24:52.640 --> 00:24:54.480
But this is that opportunity again.
00:24:54.720 --> 00:25:04.160
We need to communicate with that AI partner about what we're seeing because what we'll see far too many times is, oh, I can't stand the way that thing talks to our customers.
00:25:04.319 --> 00:25:08.240
Or and it's just like, well, did you communicate this to your AI partner?
00:25:08.480 --> 00:25:08.559
Right.
00:25:08.720 --> 00:25:10.960
And they're like, well, did you trade your right?
00:25:11.119 --> 00:25:12.400
It's like trading an associate.
00:25:12.640 --> 00:25:13.039
Exactly.
00:25:13.119 --> 00:25:14.319
It's just like the humans again.
00:25:14.480 --> 00:25:19.680
It's just like our team, it's like a leader talking about one of our teammates saying they are terrible on the phone.
00:25:19.839 --> 00:25:20.559
Yeah, right, right, right.
00:25:20.720 --> 00:25:22.160
And they're like, you're the you're their leader.
00:25:22.319 --> 00:25:22.799
Yeah, that's right.
00:25:23.119 --> 00:25:24.559
So coach them, develop them.
00:25:24.720 --> 00:25:24.960
Sure.
00:25:25.119 --> 00:25:34.240
And I think that's where we'll see where dealers will be able to do so much more when they lean into the development piece of their AI partners and the development of their employees.
00:25:34.559 --> 00:25:35.519
Like what role they play in.
00:25:35.920 --> 00:25:42.240
What what about after hours if it's an after hours call and do you still give them that option to say um I'm a virtual assistant?
00:25:42.400 --> 00:25:47.039
However, if you'd like to speak to a live individual, what do what do you do then?
00:25:47.359 --> 00:25:51.119
So normally I I would recommend they get that option when they're talking to them.
00:25:51.200 --> 00:25:54.960
So if a customer says, human, you know, you'll hear that human, human.
00:25:55.119 --> 00:25:55.440
Yeah, yeah.
00:25:55.680 --> 00:25:59.839
They just need to be trained, the AI does, on I'll be more than happy to get you over to you.
00:26:00.480 --> 00:26:04.400
However, there's no humans available right now because you've reached us after hours.
00:26:04.640 --> 00:26:16.880
However, if you have questions about inventory, yeah, finance, trade, or anything like that, I can set up time for you to speak with them, but this conversation here should save us time, mainly save the customer time.
00:26:17.039 --> 00:26:18.720
But this is that communication piece.
00:26:18.880 --> 00:26:19.039
Yeah.
00:26:19.279 --> 00:26:23.680
The team, when they come in, they have to slow down and read that interaction.
00:26:23.839 --> 00:26:24.079
Right.
00:26:24.319 --> 00:26:34.960
It's almost like if you remember when the internet really started taking off, the number one thing most trainers and dealers were saying pay attention to was that lead description.
00:26:35.039 --> 00:26:43.519
You know, when it comes in and the customer might have chatted online or they said that they've got a trade, you would slow down to read that before you interacted.
00:26:43.599 --> 00:26:43.839
Yep.
00:26:44.000 --> 00:26:46.079
Well, now we're seeing that more on the AI space.
00:26:46.319 --> 00:26:46.480
Okay.
00:26:46.640 --> 00:26:51.519
So when the team comes in, we've got to give them the time to slow down and look at everything.
00:26:51.680 --> 00:26:59.920
Maybe even have somebody come in 20 to 30 minutes before the dealership opens to just slow down and process what what the AI did the night before.
00:27:00.160 --> 00:27:00.240
Right.
00:27:00.559 --> 00:27:01.519
Yeah, good advice.
00:27:01.759 --> 00:27:02.160
Good advice.
00:27:02.640 --> 00:27:10.400
Anything else that you would see that uh maybe dealers uh could change uh with the way that they're handling leads in this age of AI?
00:27:11.440 --> 00:27:17.680
So I don't think so much with the way the leads are handled because we again we review so many interactions.
00:27:17.839 --> 00:27:24.240
I think dealers right now are hungrier than ever to um give the customers a great experience.
00:27:24.319 --> 00:27:28.160
That's where I think there's almost too many touches, almost we're trying too hard.
00:27:28.319 --> 00:27:28.400
Yeah.
00:27:28.559 --> 00:27:33.599
And I think we need to back up and simplify the experience and label it like the road to the sale.
00:27:33.759 --> 00:27:38.160
So if any of us have been in the business 20 years or longer, we remember though that road to the sale.
00:27:38.480 --> 00:27:38.799
For sure.
00:27:39.039 --> 00:27:40.720
They need the digital version of that.
00:27:40.880 --> 00:27:43.200
Like what steps do the customers really need to take?
00:27:43.440 --> 00:27:43.759
Good point.
00:27:43.920 --> 00:27:44.960
And just help them get there.
00:27:45.519 --> 00:27:52.000
Back up on all the calls, text, emails, all that, and just get clear what do we really want the customers to do?
00:27:52.160 --> 00:27:52.319
Yeah.
00:27:52.559 --> 00:27:54.799
And then when we get to that point, what happens?
00:27:54.960 --> 00:28:02.160
Because what we see when a customer gets to the finance application point, we know most customers want to do that.
00:28:02.319 --> 00:28:08.799
I think there's been data studies that say 60 to 70% of people want to do one or two steps online.
00:28:09.279 --> 00:28:19.519
But what we see is when that customer does that finance app and it's handled the right way with the right people, you have a much higher closing percentage because that customer is further down the line.
00:28:19.680 --> 00:28:19.759
Right.
00:28:20.079 --> 00:28:21.279
Just like the road to the sale.
00:28:21.359 --> 00:28:21.599
Right.
00:28:21.839 --> 00:28:28.960
But I think the bigger opportunity is what are we doing to get those customers back that we didn't convert in the first 30 days?
00:28:29.519 --> 00:28:36.640
We're all so focused, I'm not gonna say we're all, but many are focused on that zero to seven day or zero to 30 day customer.
00:28:36.880 --> 00:28:40.960
Where I think technology can help is that 31 to 90 day.
00:28:41.039 --> 00:28:41.200
Yeah.
00:28:41.359 --> 00:28:45.599
When somebody put in an internet request or an unsold follow-up showroom.
00:28:45.759 --> 00:28:47.920
And then the other piece is the retail renewal.
00:28:48.160 --> 00:28:57.920
You know, going in those customers that are already in your database, and there's some phenomenal tools out there that can let you crawl that database and find the right customers at the right time.
00:28:58.079 --> 00:28:58.400
Yeah.
00:28:58.640 --> 00:29:06.960
That's where an AI assistant, I think, is can do much more for the customer, much more for the employee than just focusing on that internet lead alone.
00:29:07.200 --> 00:29:07.440
That's right.
00:29:08.000 --> 00:29:17.200
And if you're calling people that are uh 30 days out, um chances are your competition that they've stopped at or called are not, they've written them off.
00:29:17.279 --> 00:29:19.440
They said, ah, they didn't buy, you know, forget it.
00:29:19.519 --> 00:29:23.759
I'm gonna focus my energy more on the fresh-ups that come in or the calls or what have you.
00:29:23.920 --> 00:29:25.440
You might be the only one following up with them.
00:29:25.680 --> 00:29:26.079
That's it.
00:29:26.160 --> 00:29:26.319
Right.
00:29:26.799 --> 00:29:34.079
Because us as humans, if we're being real, if we're being real, how many of us want to follow up on a 45-day old customer?
00:29:34.400 --> 00:29:35.519
We got a new one that just came out.
00:29:35.680 --> 00:29:35.920
That's right.
00:29:36.079 --> 00:29:40.319
Who wants to make that 60-day call with urgency and love and light in their heart?
00:29:40.559 --> 00:29:43.599
We're like, man, I've tried this customer 25 times.
00:29:43.839 --> 00:29:57.759
But when this AI assistant can, let's say you run a campaign to those people, you see that there's behavior, there's engagement there, and now the AI serves a message to them, and then it turns into, hey, we need to reach out to this customer.
00:29:58.000 --> 00:30:01.599
Now the team can make a better informed phone call or text to that person.
00:30:01.920 --> 00:30:02.480
Yeah, for sure.
00:30:02.720 --> 00:30:02.880
Yeah.
00:30:03.839 --> 00:30:17.680
Um for smaller dealerships uh that might not have a large BDC or a dedicated manager, how can they build a clear handoff process without adding more people or creating another layer of complexity?
00:30:18.000 --> 00:30:20.960
Yeah, I think the small stores have the biggest advantage right now, in my opinion.
00:30:21.279 --> 00:30:21.440
Okay.
00:30:21.599 --> 00:30:23.440
It's no it's no different than a small business.
00:30:23.599 --> 00:30:27.920
Like a company like mine, we can move so quick with technology.
00:30:28.079 --> 00:30:32.240
When it's a bigger organization, there's a lot of communication that needs to take place.
00:30:32.480 --> 00:30:40.079
So the smaller store, the opportunity that they have is to get their sales team to understand the power of the tools that they have.
00:30:40.240 --> 00:30:40.480
Right.
00:30:40.799 --> 00:30:45.759
Because what what we're seeing a lot is you have to use more than one dashboard.
00:30:45.920 --> 00:30:51.599
You'll have your CRM and then you'll have your AI partner sometimes that you have to use, or there's a Chrome extension.
00:30:51.759 --> 00:30:52.000
Yeah.
00:30:52.160 --> 00:31:01.359
That's much easier to train and develop a team of four or five sales reps and a leader than it is an army of 40 people trying to use these multiple tools.
00:31:01.680 --> 00:31:09.119
So an owner and a sales manager with four or five salespeople, I'm talking about can get very creative right now if they wanted to.
00:31:09.200 --> 00:31:09.359
Yeah.
00:31:09.599 --> 00:31:18.559
But it starts with, I would just say, training them, developing, and then what I've learned, even on our side in the business, is focus on one area first.
00:31:18.880 --> 00:31:26.240
You know, you might not have an issue with lead follow-up, but you might have an issue with retention.
00:31:26.720 --> 00:31:30.880
That's where you could put in an AI partner with the smaller team.
00:31:31.039 --> 00:31:31.200
Okay.
00:31:31.359 --> 00:31:35.119
So that's what I would say to the smaller stores, you have an advantage because you can move quick.
00:31:35.359 --> 00:31:39.119
Start with training and development, and then pick that problem.
00:31:39.440 --> 00:31:39.599
Okay.
00:31:40.319 --> 00:31:40.480
Okay.
00:31:40.799 --> 00:31:51.440
And dealers often track response times, leads, contacted appointments set, but what metrics should they be tracking to determine whether the AI is actually helping sell more cars?
00:31:52.160 --> 00:32:04.559
There's two that I would really focus on right now that I don't hear many talk about is that handoff time from when, because we talked about an appointment earlier, but what you see more times than not is a hand raise.
00:32:04.640 --> 00:32:04.960
Yeah.
00:32:05.119 --> 00:32:05.440
Right?
00:32:05.759 --> 00:32:10.960
So the customer raised their hand and asked a question that the AI agent could not answer.
00:32:11.119 --> 00:32:11.279
Right.
00:32:11.599 --> 00:32:15.119
That handoff time is just as important as a lead response time.
00:32:15.279 --> 00:32:15.519
Okay.
00:32:15.680 --> 00:32:24.880
What we'll see sometimes is it goes 12 to 24 hours where a customer tells an AI agent, hey, I'd like to know about this, about financing.
00:32:24.960 --> 00:32:26.240
I'm three hours away.
00:32:26.400 --> 00:32:32.000
And then for the time it gets to a salesperson or the right person that can make the decision, it's been over 12 hours.
00:32:32.079 --> 00:32:33.759
And so they're driving a car already.
00:32:34.000 --> 00:32:34.880
I would challenge leaders.
00:32:35.519 --> 00:32:38.559
The way that we can say this the best is challenge leaders.
00:32:38.720 --> 00:32:42.960
If a customer came in in the showroom, yeah, and they said, Hey, I'd like to know about the lease.
00:32:43.119 --> 00:32:43.359
Right.
00:32:43.519 --> 00:32:45.920
The lease special on this XYZ vehicle.
00:32:46.079 --> 00:32:47.920
Could you could I could you get that for me?
00:32:48.079 --> 00:32:48.240
Yeah.
00:32:48.400 --> 00:32:52.319
If the salesperson said, Let me give them my finance leader real quick and I'll get right back to you.
00:32:52.559 --> 00:32:54.559
Would we ever leave the customer there for 12 hours?
00:32:54.960 --> 00:32:55.599
12 hours, right?
00:32:55.759 --> 00:32:56.640
No, and that's the same thing.
00:32:56.960 --> 00:32:58.640
Would the customer stay there for 12 hours?
00:32:58.960 --> 00:32:59.200
That's it.
00:32:59.440 --> 00:32:59.839
Wouldn't happen.
00:33:00.000 --> 00:33:01.519
So that would be the key metric.
00:33:01.680 --> 00:33:04.319
I would say monitor your handoff time.
00:33:04.480 --> 00:33:04.799
Yeah.
00:33:04.960 --> 00:33:12.799
And then the other two KPIs, key performance indicators would be, you know, how many appointments did the AI agent set by itself?
00:33:12.880 --> 00:33:13.119
Yeah.
00:33:13.279 --> 00:33:14.640
Which sources did they come from?
00:33:14.720 --> 00:33:15.039
Okay.
00:33:15.279 --> 00:33:18.720
And then how many were assisted where it was both human and the AI.
00:33:18.960 --> 00:33:19.200
Okay.
00:33:19.440 --> 00:33:22.160
And it's more of the the dealership setting its own.
00:33:22.319 --> 00:33:32.960
But I think, you know, anywhere from, let's say if it's a lead to set, we should be striving for that 30%, 40%, or higher and refining based on the lead channels that the customer came from.
00:33:33.279 --> 00:33:33.759
Great question.
00:33:34.319 --> 00:33:34.640
Great advice.
00:33:35.200 --> 00:33:40.319
If you could change one thing about how dealerships are managing leads in the age of AI, what would it be?
00:33:45.039 --> 00:33:49.119
I would say I would go back to the two two things, communication and experience.
00:33:49.359 --> 00:33:49.519
Okay.
00:33:49.839 --> 00:33:59.519
Those would be the two most important things is don't forget about how important it is of what the human element brings to the experience.
00:33:59.599 --> 00:33:59.759
Yeah.
00:34:00.400 --> 00:34:02.799
And I and I'm seeing too many people, I talk to leaders all the time.
00:34:02.880 --> 00:34:06.000
It's like I feel like my team is backing up a little bit.
00:34:06.160 --> 00:34:06.319
Yeah.
00:34:06.559 --> 00:34:16.000
And I'm like, it's okay for them to back up, but they need to double down on what makes that customer excited, fired up, almost, I would say, emotional intelligence.
00:34:16.320 --> 00:34:21.199
You know, use your videos, use your pictures, use your voice to take that experience to the next level.
00:34:21.360 --> 00:34:26.159
Don't just become a store that's just going to rely a hundred percent on technology to run it.
00:34:26.239 --> 00:34:28.800
Because at some point, I think we both know this.
00:34:28.960 --> 00:34:34.239
What happens when every store has a phenomenal AI agent and a great process in place?
00:34:34.639 --> 00:34:35.199
You sell more cars.
00:34:35.440 --> 00:34:36.400
Now, what's going to happen?
00:34:36.480 --> 00:34:39.039
Yeah, it's going to come down to the people behind it.
00:34:39.840 --> 00:34:41.519
People that still are leaning into their community.
00:34:41.679 --> 00:34:42.000
That's right.
00:34:42.239 --> 00:34:46.239
The one-on-ones that still need to be happening daily to lift our people up.
00:34:46.400 --> 00:34:55.599
What um Andrew's book that you just talked about, the communication internally, those are the things that are going to be the most important part of businesses moving forward in the future.
00:34:55.760 --> 00:34:55.840
Yeah.
00:34:56.159 --> 00:34:58.239
Which is kind of getting back to where we were.
00:34:58.800 --> 00:35:00.559
It's going to circle all the way around.
00:35:01.039 --> 00:35:01.840
Yeah, it's going to be great.
00:35:02.159 --> 00:35:02.639
It's a great time.
00:35:03.440 --> 00:35:05.280
I think we have a question from uh one of our viewers.
00:35:05.360 --> 00:35:07.599
So let's take a look at what that looks like.
00:35:08.000 --> 00:35:11.760
If AI completes a sale, who gets the commission?
00:35:12.239 --> 00:35:12.480
Yeah.
00:35:12.880 --> 00:35:13.360
Great question.
00:35:13.599 --> 00:35:13.920
I like that.
00:35:14.159 --> 00:35:28.639
It is, but no, the the the interesting part about that, that's a true conversation that dealers are having with their leadership teams because this is where I'll see some BDC teams kind of alter the experience because they're getting paid on what?
00:35:28.800 --> 00:35:31.280
Most internet sales teams are getting paid on appointments.
00:35:31.440 --> 00:35:31.599
Yeah.
00:35:31.679 --> 00:35:31.760
Right.
00:35:32.000 --> 00:35:39.440
So going back to that KPI, if 20% of the appointments are set by the AI agent, do you still pay that BDC rep?
00:35:39.679 --> 00:35:39.840
Yeah.
00:35:40.000 --> 00:35:49.440
And so I've seen where a BDC rep paused the AI every single time because they didn't want to lose their commission because that's a that's a mom.
00:35:49.519 --> 00:35:49.599
Yeah.
00:35:49.840 --> 00:35:50.400
That's a family.
00:35:50.639 --> 00:35:50.800
Yeah.
00:35:50.960 --> 00:35:51.119
Right.
00:35:51.599 --> 00:35:54.960
So these are things that this is where the opportunity is.
00:35:55.039 --> 00:35:55.199
Yeah.
00:35:55.440 --> 00:36:05.119
How can I evolve the internet sales or the BDC person's role to where they can make more income with this technology and what other measurables would be important?
00:36:05.519 --> 00:36:15.760
But that's a great question that was just asked because dealers I know are watching this like, wait a second, if this tool is saying it's sold as 12 cars, why am I paying them and why am I paying?
00:36:16.559 --> 00:36:16.800
Yeah.
00:36:16.960 --> 00:36:17.119
Right.
00:36:17.280 --> 00:36:19.280
You think dealers feel that way about commissions?
00:36:20.000 --> 00:36:25.119
So are you suggesting though that the BDC rep still gets the commission, though an AI handed it off?
00:36:25.360 --> 00:36:29.199
If they were the one overseeing it or have you Yeah, because there's still the handoff.
00:36:29.280 --> 00:36:42.480
There's still so much that goes into it because what we'll notice is if the AI is the only one that sets the appointment and no one else is involved, it typically has a lower show percentage than when there is an experience that comes on top of that.
00:36:43.440 --> 00:36:51.039
So when there is that video, there is that love, you know, confirmation, it tends to have a much higher show percentage when it's done the right way.
00:36:51.199 --> 00:36:54.880
So there's there's definitely a a role to compensate for both.
00:36:54.960 --> 00:36:55.039
Yeah.
00:36:55.199 --> 00:36:58.880
But I think the opportunity is how can we get more out of our people?
00:36:58.960 --> 00:37:01.519
Because I think that's what the goal of technology was.
00:37:01.679 --> 00:37:07.360
It was either to either save expenses, save time, or increase revenue and profitability.
00:37:07.599 --> 00:37:07.840
That's right.
00:37:08.000 --> 00:37:12.800
It should be one of them, it should be doing one of those three things, or if you're living the best life, you're doing all three.
00:37:13.039 --> 00:37:13.360
All three.
00:37:13.599 --> 00:37:13.840
That's right.
00:37:13.920 --> 00:37:14.159
That's right.
00:37:14.639 --> 00:37:15.519
We got another question for you.
00:37:16.159 --> 00:37:17.119
What's that look like?
00:37:17.360 --> 00:37:20.800
What's a good process to get customer feedback on AI agents?
00:37:20.960 --> 00:37:23.599
How frequently should feedback be evaluated?
00:37:24.000 --> 00:37:24.559
Oh, that's good.
00:37:24.639 --> 00:37:25.360
That's a great question.
00:37:25.840 --> 00:37:29.519
I think you could um probably run some surveys from time to time.
00:37:29.679 --> 00:37:35.760
Maybe, like we'll see with the bigger companies, they'll hit you with a survey or rate this experience.
00:37:35.920 --> 00:37:36.159
Yep.
00:37:36.320 --> 00:37:38.239
I haven't seen many AI partners do that.
00:37:38.320 --> 00:37:48.559
So I think that's a great idea for a partner to maybe when an appointment was set, or maybe an appointment was not set, and it turns into that handoff, that we see a survey come from that partner.
00:37:48.719 --> 00:37:51.280
And if they can't do it, then the dealership can do it themselves.
00:37:51.440 --> 00:38:00.079
They can set it up in the CRM and just say, hey, you interacted with our team, we use AI technology, we wanted to get your feedback.
00:38:00.239 --> 00:38:02.719
What do you think about how our our experience was?
00:38:02.880 --> 00:38:03.039
Yeah.
00:38:03.199 --> 00:38:04.400
What would you like to see change?
00:38:04.639 --> 00:38:13.360
Because that gets back to the that demographic and the culture of your store where some customers are completely in love with that AI experience.
00:38:13.679 --> 00:38:16.880
And you might be in some places where that's a no-no.
00:38:17.039 --> 00:38:17.199
Okay.
00:38:17.360 --> 00:38:17.840
And I see that.
00:38:17.920 --> 00:38:22.960
I mean, even as a consultant, when I'll go into stores, I ask, who here uses AI?
00:38:23.199 --> 00:38:29.440
And what I'll find is some people will literally look at me with a scald face and like, I don't like AI at all.
00:38:29.599 --> 00:38:29.920
Yeah.
00:38:30.159 --> 00:38:35.599
You know, for whatever reason that is, but imagine if the employees are like that in your company.
00:38:35.840 --> 00:38:36.079
I know.
00:38:36.159 --> 00:38:36.320
Yeah.
00:38:36.559 --> 00:38:38.320
Imagine what some of the customers are feeling like.
00:38:38.639 --> 00:38:39.199
So that's right.
00:38:39.360 --> 00:38:39.519
Yeah.
00:38:39.599 --> 00:38:41.199
That's a that's a great uh suggestion.
00:38:41.440 --> 00:38:42.159
Yeah, that's great.
00:38:42.480 --> 00:38:43.519
No, no, no question.
00:38:43.840 --> 00:38:46.320
Um, yeah, the industry is going through this.
00:38:46.400 --> 00:38:48.960
Uh somebody described it to me uh not long ago.
00:38:49.039 --> 00:38:51.840
He said, because it's kind of cumbersome, we're still trying to figure it out.
00:38:51.920 --> 00:38:55.119
He said, You remember when uh computers first came out, we had dial-up?
00:38:55.440 --> 00:38:57.360
Everybody was like, Oh my god, what do I do?
00:38:57.440 --> 00:38:58.000
How do I get on?
00:38:58.079 --> 00:38:58.960
This is taking too long.
00:38:59.760 --> 00:39:03.920
That's kind of where we're at right now with AI still in the infant stages, right?
00:39:04.079 --> 00:39:04.239
Yeah.
00:39:04.480 --> 00:39:08.880
But but at the end of the day, it's gonna mean a whole lot more to the operation of a dealership.
00:39:09.280 --> 00:39:12.719
I think that's where the biggest opportunity is, is in that operation's the time.
00:39:13.199 --> 00:39:13.599
Yeah, yeah.
00:39:13.679 --> 00:39:21.199
There's a general manager or an owner watching this now that is used to spending one to two, three hours going through data to look at information.
00:39:21.360 --> 00:39:21.679
That's right.
00:39:21.840 --> 00:39:27.519
And now they can do it with their personal AI agent or the right company to get their information within minutes.
00:39:27.760 --> 00:39:28.079
That's right.
00:39:28.320 --> 00:39:32.960
To me, that's invaluable because I remember sitting behind that desk and getting to work at 7 a.m.
00:39:33.199 --> 00:39:33.440
Yeah.
00:39:33.599 --> 00:39:34.800
Just to get ready for that doc.
00:39:35.119 --> 00:39:35.440
That's right.
00:39:35.679 --> 00:39:39.039
You know, your doc, your forecast, your inventory, your old age.
00:39:39.119 --> 00:39:39.280
Yeah.
00:39:39.599 --> 00:39:41.280
And now you can get that information quickly.
00:39:41.519 --> 00:39:41.760
Yeah.
00:39:42.159 --> 00:39:45.440
On the way in over a cup of coffee from your uh on your cell phone, right?
00:39:45.519 --> 00:39:46.079
Yeah, that's it.
00:39:46.320 --> 00:39:47.519
Really is just incredible.
00:39:47.760 --> 00:40:03.039
I spoke to a dealer that said um uh that his his best salespeople are coming actually out of the BDC, which I thought was interesting because they have lived that life of a BDC um uh operator or what have you associate.
00:40:03.119 --> 00:40:08.800
And uh and when they hit the showroom floor, they have a clear understanding of what's taking place in the BDC.
00:40:08.960 --> 00:40:10.079
Have you found that to be the case?
00:40:10.239 --> 00:40:17.519
That might be a great first step for somebody coming in into the industry to sell cars to say, get in the BDC for six months.
00:40:17.599 --> 00:40:21.920
And so you really have an understanding of what happens when that customer does call or connect.
00:40:22.159 --> 00:40:31.039
Yeah, we've never seen a BDC team that we've coached, and even in my personal experience as a BDC person, um, go down in sales or go down in income from moving up.
00:40:31.199 --> 00:40:34.639
I might get in trouble because now it's gonna be a bunch of BDC people, I'm gonna sell cars.
00:40:34.719 --> 00:40:34.880
Right.
00:40:35.199 --> 00:40:42.159
But there's a natural progression that if they know how to use the tools because they should already know how to communicate with customers.
00:40:42.239 --> 00:40:42.400
Right.
00:40:42.639 --> 00:40:46.480
So the advantage that they have is they know how to use the tools, they know how to communicate.
00:40:46.559 --> 00:40:55.280
Yeah, the only skill set they really need to learn is that art of going over the proposal and being comfortable with dealing with those objections that they might not normally deal with over the phone.
00:40:55.360 --> 00:41:06.159
But I'm a perfect example of somebody I went from a BDC manager to a GSM, skipped all the other steps, and it was because I knew how to help help everybody use their tools a little bit better.
00:41:06.320 --> 00:41:06.559
Sure.
00:41:06.960 --> 00:41:21.679
So I think the natural evolution for most BDC teams, uh BDC sales reps, will get into either that management of technology role as a CTO, or they could be a salesperson and be a complete rock star on the floor.
00:41:21.920 --> 00:41:24.400
But yeah, I see that happening a lot, especially in the near future.
00:41:24.719 --> 00:41:31.599
Duran, is there a magic number volume-wise that that where somebody feels comfortable installing a BDC?
00:41:31.760 --> 00:41:38.159
I mean, if I'm selling a hundred cars a month at a dealership, 50 new, 50 used, is that is that store big enough?
00:41:38.320 --> 00:41:44.800
Can it afford a BDC, or is it better off just letting the salespeople still take the calls or well?
00:41:44.880 --> 00:41:47.119
I mean, it also depends on how many salespeople you have.
00:41:47.280 --> 00:41:47.440
Okay.
00:41:47.760 --> 00:42:07.679
Because you could run, you could call it a, and I almost don't like to use BDC, like inside sales team or online experience team, but either way, for this the the context of this conversation, you could have a small BDC team and then two or three sales reps, to where the sales reps all they focus on is delivering that experience and selling a car.
00:42:07.760 --> 00:42:07.920
Yeah.
00:42:08.159 --> 00:42:16.719
And the BDC team, their number one job is to take care of everything we're talking about, the communication, the handoffs, the customers dealing with AI.
00:42:16.960 --> 00:42:26.239
But like we said earlier, if you have a small team, you're a smaller store, and you've got five salespeople, a manager and an owner, they could sell a hundred cars off of that five-person team.
00:42:26.400 --> 00:42:26.559
Yeah.
00:42:26.719 --> 00:42:30.159
So it depends on your people, how well they'll use these tools.
00:42:30.239 --> 00:42:30.320
Okay.
00:42:30.639 --> 00:42:34.000
But normally we see BDCs more along auto groups.
00:42:34.320 --> 00:42:40.480
So we see it like, you know, with a five, ten store group, we see that more common, or a single store selling two, three hundred.
00:42:40.719 --> 00:42:45.360
And is that a when you say five or ten, you're talking about a centralized BDC or one in each store?
00:42:45.599 --> 00:42:46.800
So I'm seeing both right now.
00:42:47.039 --> 00:42:56.079
There's centralized, but then I'm also seeing where there's kind of like this director, and then they have one person at each store that's helping oversee the process.
00:42:56.320 --> 00:42:56.559
Okay.
00:42:56.800 --> 00:43:04.639
Depending on how spread out the group is, I like it if you can have somebody in each store because of the commute, the communication piece.
00:43:04.800 --> 00:43:05.039
Right.
00:43:05.199 --> 00:43:13.519
Because what I know my BDC team will feel this, when you're centralized, the hardest part of that handoff is communication to a manager.
00:43:13.679 --> 00:43:13.920
Yeah.
00:43:14.079 --> 00:43:25.679
There's very few stores that I know that have a really, really tight communication, whether you're using like a Slack or Group Me or a good SMS system to communicate, hey, here's this customer, here's what's going on.
00:43:25.840 --> 00:43:28.559
But when you have that champion in store, it really does help.
00:43:28.719 --> 00:43:31.280
It just depends on how far spread out that store is.
00:43:31.599 --> 00:43:31.760
Sure.
00:43:32.079 --> 00:43:32.320
Sure.
00:43:32.559 --> 00:43:38.000
Um we've had a number uh of calls that we've made from here with Kyle Disher, who comes in.
00:43:38.880 --> 00:43:39.360
He's great.
00:43:39.519 --> 00:43:39.920
He's great.
00:43:40.400 --> 00:43:43.199
Still waiting for the people to follow up on that on those calls.
00:43:43.360 --> 00:43:46.719
Um follow-up still we suffer from in a big way in this industry.
00:43:46.880 --> 00:43:54.000
And of course, those individuals that are at dealership say, We need more leads, we need more leads, and then they don't take care, proper care of the lead.
00:43:54.159 --> 00:43:57.840
What's a what's a uh an acceptable response time?
00:43:58.000 --> 00:43:59.840
What is a customer looking, or where a product is a good idea.
00:44:00.239 --> 00:44:46.000
prospect looking for once they make contact with a dealership outside the automated oh thanks for calling us you know we we here's your standard text message or what have you what's the amount of time that it that a that a dealer needs to get back to a prospect that's acceptable to them the same time that it should be on the showroom floor yeah you know if a customer walks in and they ask a question okay how long should us should that customer wait you know if you're going to the tower or the desk or whatever it should be in a matter of minutes seconds because the engaged customer is the most important customer in my opinion outside of somebody on the showroom floor right because that person's actively talking to you or your digital assistant I think it's how we communicate to that customer and then what's that end goal focus on the steps.
00:44:46.239 --> 00:45:14.960
When you look at the largest run companies that have this dialed in they focus really on these three key pillars which is do let's help them find the right car do we have it do you need assistance with financing we got you on that note and then are you selling or trading your vehicle right it's really those three pillars it's that it's our road to the cell condensed down and so when we're communicating to that customer it either needs to be inviting them in inviting them to a phone call or helping them with the next steps online.
00:45:15.519 --> 00:45:21.440
And when we simplify it that way that that makes it to where that communication could be a lot quicker.
00:45:21.519 --> 00:45:21.760
Yeah.
00:45:22.000 --> 00:45:27.760
Because if you don't know what to say that's what's making that let me get back to you let me get back to you.
00:45:27.920 --> 00:45:34.719
Yeah then you go get with a leader who's working four or five customers in a showroom now that customer has to wait.
00:45:34.880 --> 00:45:35.199
That's right.
00:45:35.360 --> 00:45:49.599
So we have to empower our people and I don't see enough of this and I look forward to seeing this in our industry where BDC teams, internet sales teams even salespeople are way more empowered to do more to be able to review financing with the customer.
00:45:49.679 --> 00:45:54.559
Like imagine a a BDC team right now that they've all gone through finance school.
00:45:54.639 --> 00:46:32.000
Yeah imagine if they all know how to appraise a vehicle could you imagine as a customer working with that associate and they can answer just about every single question that you have imagine a sales team that doesn't have a BDC and they can actually give a proposal I mean we were doing that my team in in good old Jackson we were doing this back in 2009 2010 my general manager Jim he got tired of me coming to him about this customer needs this customer needs this yeah so he throws his and I probably shouldn't share this but he throws his username and password to the blue screen right and he says you come get with me tomorrow morning and I'm gonna teach you how to do this.
00:46:32.079 --> 00:46:35.920
Yeah changed my life because he got tired of me going back and forth with him.
00:46:36.239 --> 00:46:45.599
So I sit with him he teaches me how to work car deals then I train and watch him work real car deals and then now me and my whole team we're empowered to do a bunch of deals online.
00:46:45.840 --> 00:47:49.119
Oh yeah of course of course I still had to approve get things approved through him but you even know at that point in time what the guidelines are what the guardrails are to say wait we're not going to take that kind of a gross on that car you know it's only a two day supply versus a car that we've got you know a a year supply on you know what kind of deal to make you know what to put on the trade you know empowerment yeah exactly great opportunity yeah empowerment no question about it Duran Cage thank you so much for joining us today this has been wonderful we really appreciate you coming to the Steve Bruce this is phenomenal this is phenomenal we're glad you had fun yeah I know our viewers got a lot out of your visit so thank you all right everyone thank you so much for joining us today be sure to join us again tomorrow at noon tomorrow uh noon on the sorry Eastern Eastern then yeah I don't know I lost my trade of thought for a second but nine o'clock on the west coast joining us today we'll see you right back here tomorrow all right go make it a great day let's go to the dragon keep it alone