The New Auto Arms Race: How Dealers Are Turning Vehicle Data into Loyalty and Cash Flow | Shane Wilson, President at Connected Dealer Services

Interactive Transcript

spk_0 Dealers early access to our private dealer chat groups is now open.

spk_0 Join top dealers at CDGCircles.com, that's CDGCircles.com or hit the link in the show notes.

spk_0 I'll see you inside.

spk_0 Today I'm joined by Shane Wilson, president of Connected Dealers Services.

spk_0 Automakers use to control everything that happened after the sale from service alerts to driver data.

spk_0 But now dealers are using that same information to stay connected with customers,

spk_0 build loyalty and boost service revenue through the one thing customers never leave behind.

spk_0 Their phones. A big thank you to our sponsors for making this episode possible,

spk_0 Polk Auto Direct, Amazon Auto's and of course connected dealer services.

spk_0 And now let's get into the show.

spk_0 Shane Wilson, welcome to the CDG podcast. Tell us a little bit about yourself to start out.

spk_0 Hey Sam, great to meet you and really happy to be on. So Shane Wilson, president of Connected

spk_0 Dealers Services and we're the team behind the CAR X platform. CAR X is a connected CAR

spk_0 enterprise tool for dealerships. We're really happy to be here.

spk_0 So what does connected CAR mean in your world?

spk_0 Yeah, it can go a lot of ways, right? So we have a device. In fact, I have one here I can

spk_0 have a hold up, but there's a widget that's installed on every vehicle with the dealership lot.

spk_0 We really start from lot management and we go all the way to loyalty. So I'll walk you through that.

spk_0 But basically, they install our product on every vehicle on the dealership lot and we first

spk_0 start out with helping them with sales efficiencies, making sure they know where the vehicles are

spk_0 for stolen vehicle recovery and protection. We let the salesperson individual know,

spk_0 is their fuel in the vehicle, is the vehicle going to start for user experience.

spk_0 You don't want to bring a consumer out to a vehicle with a dead battery, things like that.

spk_0 But then we take it into FNI, where the FNI agent will sell our product in FNI as a stolen

spk_0 vehicle recovery program. But we offer so many other services for the consumer, whether that be

spk_0 our data collection, which is really important. So we pull a lot of data from the vehicle.

spk_0 We help the consumer with vehicle health. We help them be able to understand their maintenance

spk_0 intervals, things like that. But we also share that with the dealer. So we're one of the first FNI

spk_0 products that really offers that that continuous kind of connection to the consumer and really kind

spk_0 of the ability to give the dealer a lifetime relationship with that consumer or their client with

spk_0 just enough an eye product. So I hope you can kind of link it back to my own world. So it's

spk_0 Ziggler with you low jack. And I know there's deputies out there that do recover similar systems.

spk_0 So this is a GPS system. It'll track the vehicle, but it does more. It connects into the system

spk_0 and gathers more information programs like low jack and maybe recover. I don't know. They'll at least

spk_0 gather the battery, but not much else. How do you get that information? How do you get those

spk_0 different data points out of the vehicle? That is what exactly makes us the most unique and the

spk_0 biggest differentiator between us and our competitor, Sam, is we are able to pull the real time

spk_0 insights from the vehicle through the OBD port. So we're wired behind the vehicle. We're not

spk_0 that OBD plug-in. So we're installed underneath the dash just like anybody else. But we're tied to

spk_0 those data points in the vehicle to get real odometer, fuel reading, all of the check engine lights,

spk_0 vehicle health status, things like that. Which it's great. In fact, we're processing at this point,

spk_0 almost two billion events a month, all of that data. And what we're doing with it is we're

spk_0 sharing that with the dealer on a platform to allow them to use it to make better business

spk_0 decisions, allow them to communicate directly to their consumer base, run service campaigns.

spk_0 Even to the point now, AI has been so popular these days and even some of the conversations

spk_0 you've had recently, we are a data engine for AI. So just being able to pull that data and

spk_0 ingest it in AI and some of the programs are doing is really unique. That's fascinating. I mean,

spk_0 there's not another product that offers is in-depth data and experience. Do you have information

spk_0 from your dealer clients about what the retention rates look like when they apply the product?

spk_0 I mean, so from our standpoint in my world, it helps us track vehicles. Our salespeople can walk

spk_0 that customer out directly to the vehicle. We know when the vehicle stolen. We know when it's

spk_0 off lot. So just pure lot management is the benefit to us of a product like this. You're

spk_0 extending that into finance. Finance is reselling it and then services maintaining a connection with

spk_0 that customer. What are some of the data points that show retention over time of that customer

spk_0 back to the dealership? Our actual Norstar metrics on our side is service appointments. It was really

spk_0 the easiest way for us to measure ourselves and our success. So our goal is if we can book an

spk_0 additional service appointment, even just one, a service appointment per consumer and F&I,

spk_0 that's huge for the dealer. So when we look at it that way and then all the rest of our program

spk_0 kind of ties along with that, that's how we're measuring ourselves. But some of our dealers are

spk_0 booking over 1600 to almost 2000 appointments a month through our program. So what happens is there's

spk_0 a consumer app, right? And we're tied into the scheduling tools and all of that through DMS

spk_0 and X time, etc. And so the consumer can book right through our app. I don't know if you've ever

spk_0 played around some of the dealer websites, but booking an appointment through an appointment through

spk_0 the dealership can be tough sometimes, right? So this is two or three clicks. You have a direct

spk_0 connection. You know it's scheduled. We follow up with alerts and notifications and scheduling

spk_0 in your calendar and things like that. So yeah, so that's the big data point for us as the

spk_0 appointments. And we're seeing today almost 20% growth month over a month with our dealer as they

spk_0 continue to get more volume, but as we continue to learn better insights, you know, like we've

spk_0 learned Tuesday and Wednesday are better days to campaign a consumer versus the weekend and things

spk_0 like that. So we're continuing to look at what's successful, what's not really how to strategically

spk_0 touch that consumer at the right time when it's when they care about it, you know, so these real

spk_0 time insights are really, really important. So what caused you to develop this? Where did this come

spk_0 from? What's the need before we go into some of the specific? Yeah, it's a fun story. So, you know,

spk_0 we were similar back in 2016, you know, 2015, 2016, we really started this program. The original

spk_0 problem we tried to solve, which some of our competitors still have, Clay, frankly, is we don't know

spk_0 without tying into the data of the vehicle. You don't know what the VIN is. So you don't know

spk_0 it technically. You don't know what car you're in. So thinking about tracking vehicles, you may not

spk_0 necessarily know relying on human air, all of that. So we wanted to solve that to be able to understand

spk_0 exactly which vehicle we are plugged into. And that was we solved it and that was it, but then once

spk_0 that happened, we started realizing all of this other data point that we could find, you know,

spk_0 all of this other data that we saw, like, oh, wow, we can get fuel. We can show everybody the fuel

spk_0 level. Or, you know, look, we can get some of the check engine light data, some of the vehicle

spk_0 health data. And it's just completely pivoted our company, you know, to where now, you know,

spk_0 you mentioned earlier on the intro, we're an enterprise tool is we're not just a GPS company

spk_0 anymore, you know, we are really going into that CRM world with the data. We're becoming a channel,

spk_0 call it a channel of of of the data and the insights from the vehicle directly to the consumer

spk_0 cell phone. So we're not replacing direct mail and some of the other other advertising they're doing,

spk_0 but we can be able to get channel for them. And that's really resonating with our group and our

spk_0 dealer base. So, so this is a product born of a specific need and you're filling that need.

spk_0 And finance offices are delivering to their customer. What are you seeing as an average lift in

spk_0 F and I when F and I offers it? Like what what contribution to the PBR does? Yeah, we're adding

spk_0 depending on the service plans, we have multiple service plans anywhere from a one year to a seven

spk_0 year plan. But on average, we're seeing about a $600 lift on a three year plan all the way up to

spk_0 about a $1,200 lift on PBR with some of our longer term plans. And what's really working for the

spk_0 dealer and the entire program is now, you know, the dealers really want to they want the data. They

spk_0 want the connection from the consumer as long as possible, right? So they're they're really pushing

spk_0 to try to get that longer life lifetime connection. So they're going for longer plans. The consumer

spk_0 can kind of really understand, you know, not only am I getting all of the features of stolen vehicle

spk_0 recovery and teen tracking and some of the other things that resonate on top of our, you know, a standard

spk_0 program. Now I have that loyalty and now I have a better connection with my dealer. I can

spk_0 communicate back and forth. What's the most basic plan from a time and then what's the longest

spk_0 plan? Yeah, so we go from one one year standard. So so the consumer benefit really is the same.

spk_0 It's really just the amount of time in some of the data collection. So yes, so so a lot of our dealers

spk_0 will, you know, lean in and say, I want everybody, no matter what to get a one year plan. And they're

spk_0 making, you know, it's very profitable. And some of our dealer groups and the larger groups are

spk_0 making $35 40 million enough and I with just our program as a group, right? And so they do a one

spk_0 year, but then they have the upsell, right? So then they typically upsell to three to a five to a

spk_0 seven. Our corporate average as a company is about 40 service months as we look at it. So we're

spk_0 the really a blend of three and five is what we're the sweet spot is from our dealers.

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spk_0 So what are you seeing as like are dealers having how are they packaging this when they get

spk_0 a finance with the banks? The banks are probably excited about it because they can track the vehicle.

spk_0 They better maintain the vehicle better connected to the lenders. Have you kind of stepped into the

spk_0 lender world a little bit to understand how well they're adopting or accepting the product?

spk_0 Yeah they're accepting it from a finance perspective like meaning they're allowing it on the

spk_0 loan, they're advancing it. All of that's done. We haven't gone down the path. We help the dealer

spk_0 with fraud which is been huge. Obviously fraud today in a dealer you know is huge. So we're helping

spk_0 them recover vehicles. We're helping them with fraud. But after that it's really the more of

spk_0 the consumer product. So we're not assisting them. I'm like a buy here, pay here, world or a

spk_0 recovery aspect. But certainly on the fraud path we are. Yeah. What are you seeing out there in the OEM

spk_0 world with connected vehicles? Because when we talk about this one of the things that comes to my

spk_0 mind is information about customers and being able to serve the customer and retain the customer

spk_0 to a dealer group not to a manufacturer's key in today's world. And it seems to me in a lot of

spk_0 ways it's a race for dealers to figure out how to connect with customers and retain them long

spk_0 term to a group to the name brand not necessarily to the OEM. And it seems like this sort of does

spk_0 that. Talk to us a little bit about the benefit of retaining to a dealership group as opposed to

spk_0 a manufacturer. Yes. So the group is our largest focus. I mean we support anyone from a one

spk_0 rooftop to hundreds. Right. The platforms built to support even independence or some of those

spk_0 smaller accounts that may not necessarily have their own tech team or their own BDC center,

spk_0 things like that. They can use our platform for all of that and get the very similar service

spk_0 some of these big guys to. But when you look at the group level and you think about the inventory

spk_0 they have they have multiple franchises. Right. They have multiple brands and multiple logos.

spk_0 50% of their inventory is used and that's kind of growing at least right now. Right. So

spk_0 unique coverage. So we're that umbrella to go over the entire group. We're agnostic to brand.

spk_0 We're agnostic to new and used. And we're allowing them to have that overarching view of all of

spk_0 their inventory, all of their consumers in one spot, which is completely different than what the

spk_0 in our world. We've got a director of fixed ops and he works with all of our service locations.

spk_0 Does this give a even a larger group? Like what are you seeing with fixed ops directors,

spk_0 finance directors and how they're engaging with this in multiple rooftops? We've got 41 stores,

spk_0 four states, 2700 employees. I would think it'd give a fixed ops director some visibility into

spk_0 not only inventory and retention, but also into maybe trends and service and problems with

spk_0 particular brands. It's yeah, you're absolutely right Sam. So the fixed ops directors and the

spk_0 team and service can go to the platform they can they can see certain trends on, you know,

spk_0 what vehicles have check engine lights most frequently, right? What what vehicles are in

spk_0 ready for service? We actually create a notification to them directly when we onboard the dealer to

spk_0 where if something's going on at the vehicle level, whether it be a check engine light,

spk_0 what severity the check engine light may be, that gets sent to the fixed ops director or someone

spk_0 that's in charge of that group or responsible for that function. So they can communicate to their

spk_0 consumer immediately, right? And have that start building that trust factor start allowing them to

spk_0 get it. So consumers sees the you know, they alert on their phone immediately the dealers calling

spk_0 them. It's just it's a win-win for everybody. Yeah, interesting. How many dealerships are you working

spk_0 with at this point with this product? We're in several hundred. We're we know we are you know,

spk_0 the majority we have a bunch of the top 150 dealer groups in the country. We're continuing to grow

spk_0 substantially year over year. We have some major groups in the country doing very well with us

spk_0 where we're on every vehicle and the dealership lot covering every dealer in their in their arsenal

spk_0 and just taking you know, huge advantage of what we can deliver on the from the data. And again,

spk_0 they're using it not only on our platform, but they're ingesting it too for their their their

spk_0 other programs and complementing what they're doing for their other DMS, the other CRM systems.

spk_0 Yeah, give me give me an example of how it complements each other. What what what are some ways that

spk_0 the product comp will think about? I always talk about the one data point, but the odometer,

spk_0 you know, we get the odometer. So just think about how important that is for so many of your

spk_0 products at a dealership or dealer group, you know, from from thinking about just buy back programs

spk_0 and when I may want to promote to that consumer to get the vehicle back. Do are they driving

spk_0 commercially? Is it a new bird? Is it a lift? We can help recognize some of the prepay maintenance

spk_0 programs and insurance programs you may have that potentially would expire at you know, 30,000,

spk_0 thousand miles today. We're going to tell you exactly when 36,000 miles happens, right? So it's not

spk_0 just that average based off, you know, average driving behaviors and things like that. So we're built

spk_0 to be able to send that through APIs or any format that the dealer group may want so they can

spk_0 ingest it anyway they want. Interesting. Are you seeing anything interesting with AI where once the

spk_0 dealer collects all this information about their client base and is working to retain them. Maybe

spk_0 some best practices are interesting ways that dealers could be thinking about how to engage with

spk_0 the customer's to increase retention through through all this. Yeah, I think you know, what we've

spk_0 seen have the most successes when there's someone assigned to the to the program and it's a little

spk_0 bit of trial and error, you know, just like any advertising, right? Like I mentioned, what day is the

spk_0 best for for booking an appointment? We found Tuesday and Wednesday is is that so so that I think

spk_0 that dealer being able to really lean forward and use our platform and get the tools of data out of

spk_0 it to create that sweet spot of exactly when the consumer really wants to be a talk to or a painter.

spk_0 We're doing that on our side too, right? So a lot of predictive modeling, what is the consumer,

spk_0 you know, what does the consumer really want? We don't want to be annoying, you know, we don't want

spk_0 to be we want to hit them at that point where it's very important for them to, you know, to book

spk_0 that appointment to talk to my dealer. And then finally, you know, AI needs data, right? So I,

spk_0 you know, I mentioned earlier, but I mean, we are the data engine from the vehicle, you know, so,

spk_0 you know, if it when you think about AI in general, any if they're doing it for their DMS, their CRMs,

spk_0 it needs more data to process. So think about vehicle health scoring, thinking about, you know,

spk_0 where the driver behavior is, layer that onto some other other other data points. It could be very

spk_0 compelling. And I think it just takes that whole experience and success rate to through the room,

spk_0 through the moon. It's such an interesting area like it's something that's never been explored.

spk_0 Like never in the history of automotive has a dealer group my size or a single point had access to

spk_0 a tool that could retain the customer back by communicating with them so directly. And that,

spk_0 to me, is fascinating. We also give the dealer the branding within the app. So they're launching

spk_0 CAR X. CAR X is their trusted advisor. CAR X is what the consumer really trusts and believes.

spk_0 But the dealer branding is all through the app. So your logo of your group, your logo of your

spk_0 your specific rooftop, if you want it there is all present when booking the appointment. Everything.

spk_0 So you still, you know, in some of these groups, we're starting to become the mobile app strategy for

spk_0 them. So you could put the Ziggler logo on it. And when the customer goes in the app is it,

spk_0 is it an iPhone app or a, yeah, Android or just a web link? What is it? It's an iOS or an Android app.

spk_0 So they're native to the phone. And yeah, when they launch it, all of the branding is there. So

spk_0 the Ziggler to your point would be there. You know, when they're booking an appointment, they know

spk_0 they're booking it with that group. And so it's very specific to your group. Is there like an API

spk_0 or an integration that pulls things like service recall and manufactured required history into the

spk_0 app so it predicts or recommends those types of items as well? You got it, you nailed it. So yeah,

spk_0 so we're pulling some of the OEM schedule A data. So we know exactly the maintenance schedule for

spk_0 each vehicle. But we've learned that dealers also, rather at times, have their own schedule.

spk_0 You know, maybe they have their own maintenance program. We were paired quite a lot with some of

spk_0 the larger groups where we, we, we mirror exactly their maintenance program. And so it may be every

spk_0 5,000 miles, every 7,500. So we can marry it to the, whatever the dealer dealer group wants or we can

spk_0 pull schedule A. Recauls are another one. You know, if you see the success like busy cars doing

spk_0 and some of the others, the recall information is a huge service retention point. And we do that.

spk_0 We pull all of the, the recall data, allow the consumer to see the recall that dealers able to

spk_0 again, campaign do, campaigning, promotional campaigns around recalls, things like that's another

spk_0 big deal. So are you pulling that like from busy car or an API integration outside of a tool like

spk_0 that? Do you have to have both? No, we're pulling it from NITSA actually. So National Highway

spk_0 is a big collector of that data because obviously it's, you know, by law, consumers have to get

spk_0 registered. So there is a database you can pull and we can expose that on the mobile app. So the

spk_0 consumer logs in, they see whatever recalls are required, same as the dealer when they log into

spk_0 the portal. You know, you mentioned the, the, the manufacturer required service. In our world,

spk_0 there's a difference between what we would recommend sometimes and what the exact same.

spk_0 I recommend. Yeah. And you said you can pull either one. Do you have an opinion having service so

spk_0 many clients, which is best? I think, you know, I feel the dealers schedule is best. And, you know,

spk_0 they have it tied to their programs. Like I mentioned, usually it's, it's tied exactly to their current

spk_0 maintenance programs and how they have it scheduled. And I think that's, I personally have seen the

spk_0 most success when, when we're embraced kind of all in one where there's not a, we just come a bigger

spk_0 part of the dealers network, right? Where we're supporting exactly. There's no discrepancy of what

spk_0 they're saying on the dealer's wall versus us. Yeah. Why do you think the OEM sometimes go longer

spk_0 on their intervals? And we want less like, where's the truth in that? I know you're not a

spk_0 industry expert in it. And so you know, you probably got an opinion based on pulling the data like you do.

spk_0 I think it's, I think it's, you know, some of the products the, the dealers are offering,

spk_0 you know, from a maintenance perspective, what they can offer versus what the dealers actually

spk_0 recommending. I truly think that dealer knows best in this world where they know what their

spk_0 customers are looking for. And you think about just regions, right? Like here in Michigan, where

spk_0 I'm at, just the climate versus, you know, dry areas in Phoenix and Scottsdale, things like that,

spk_0 right? So the dealer and then their region and what is required, they're always going to know best.

spk_0 They have the boots on the ground right at that location, right? So I think that's the way to go.

spk_0 Transitioning kind of staying in that lane of required services, OEM services dealer group.

spk_0 What's one of the most overlooked opportunities in the service lane in this connected car area in

spk_0 your opinion? You know, I never would have thought about it until we really started seeing some

spk_0 success, but interesting enough, batteries or what I would call wearables, right? When you think of

spk_0 as a consumer, not necessarily a dealer group, but as a consumer when your battery goes, I don't

spk_0 immediately think about going to the dealer to get that fixed. I'm going to go to an auto zone or

spk_0 whatever. Entire's are also similar to that where, you know, you know, you know, I always think

spk_0 about going to the dealer for that. And so I, you know, on top of the major repairs that we're

spk_0 helping the dealer with, I think I found that it's just there's new opportunities in the service

spk_0 side of the world that the dealers haven't really taken advantage of because they never had

spk_0 the ability to have that data. So now they know a battery failed. You know, a Johnny's car,

spk_0 the battery failed today, I can hand, I can take care of that for them. Or based off the odometer

spk_0 in driving behavior, when tires should be rotated and when tires should be replaced, we have,

spk_0 you know, I'm going to age myself a little bit, but we have kind of the old school Lincoln penny

spk_0 test on the app. So you can, you can measure your treadwear that dealership can or the consumer.

spk_0 And then once we know that tread, we use all the analytics behind our platform on odometer

spk_0 and driving to be able to know and predict when the tires need to be replaced.

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spk_0 show notes below. Before I go into through pick, because I would like to ask you a little bit

spk_0 about how a device like this improves shop through through pit or technician efficiency. First of all,

spk_0 what does the install look like? Where does it go? Where does it sit? Does it need an external power

spk_0 source? Is there ever a threat of a drain on the battery having it there? Yeah, great question.

spk_0 So, so battery no. In fact, we have one of the, you know, the lowest current draw in the industry

spk_0 with our hardware again. So, you know, it's designed to sit on a dealership lot, right? So,

spk_0 if you have it, if you have any drain issues at all, you're going to be very exposed really quick.

spk_0 So, so a very low current draw. In fact, it's almost completely disconnected when it's sleeping. So,

spk_0 if it's this part done a lot, not moving, we're not drawing hardly anything either.

spk_0 But there's about a three-foot wire harness. We install behind behind the OBD. So, everything

spk_0 stealth. Obviously, we're still a stolen vehicle recovery product. We have to make sure we're secure

spk_0 and hidden. But it's wiring to the OBD port. It's pulling the data. It's getting power. It's getting

spk_0 some of the data feed from there. And then it's installed, you know, the installs train,

spk_0 installers train to kind of hide it randomly throughout the cars. So, it doesn't plug directly into

spk_0 the the port. You're you're coming into the wiring harness somehow. Exactly. We're coming, so we're

spk_0 permanently installed. So, you think of emissions testing, OE scan tools, all of that, all of that

spk_0 has to still work and plug in, right? So, we're completely hidden in stealth from that. And then

spk_0 being that we are disconnected electronically from the car when we're not in use, that's, you know,

spk_0 there's no issues with other products being plugged in or working. Because one one thing you get with

spk_0 some of the other products that are permanently plugged into that port is there's another receptor

spk_0 on top of the plug that others can plug into. But sometimes if you take it to a competing dealer,

spk_0 they'll complain about, hey, it's not a pull it out. You know, they'll pull it out. They'll say it's

spk_0 causing the vehicle to malfunction. So, do you see less instances of issues with the product where

spk_0 OEMs or other shops are claiming that there's a problem as a result to the device? Is that pretty?

spk_0 Yeah, that's why it's it's our warranty rate and quality is almost non-existent. We have a

spk_0 warehouse in Irvine, California where we QA and test every single device who forward ships.

spk_0 That's the one thing. I wear a proud of ourselves of, you know, I have a full engineering department,

spk_0 full hardware department, everything's done in house. So, I have full control of all of that quality.

spk_0 We make sure that there's no issues with the scan tools, no issues within you, the quality,

spk_0 and all of that's all plug in place. So, they don't even, half the time, they don't even know where they're

spk_0 like when they when they want to be. And that's the best case, right? Because that it's hidden from thieves.

spk_0 They can't find it and then competitors aren't going to bring it up as an issue because they won't

spk_0 see it, right? Which that's pretty smart. So, coming back to FNI just a little bit, you've said

spk_0 FNI's a lot launch pad for lifetime value. Can you explain how dealers bridged that first transaction

spk_0 into that longer term engagement? So, I get it's offered at FNI as an additional product.

spk_0 If finance upsells it turns from lot safety and security to the dealer, it transitions into a

spk_0 device that the consumer can use. How does FNI actively set that up as, hey, this is going to help

spk_0 serve you, Mr. customer, even above and beyond some of the OEM or manufacturer apps or programs that

spk_0 are installed in the vehicle at time. So, yeah, what we've seen as far as the most success, you know,

spk_0 we have a dealer app as well, right? So, the sales people are using it and they're, so we train them to,

spk_0 you know, when they're walking the client to the vehicle, they're already demoing it. They're using it

spk_0 as a tool for them. So, that's a great lead in of, hey, I'm using this Mr. customer. You need to

spk_0 use it too and go through that. And then what FNI is doing through the, in the upsell, our best

spk_0 successes, they're actually having them book their first appointment in FNI while they're at the

spk_0 dealership. So, they instill that kind of muscle memory, they understand that, oh, I have this app,

spk_0 it's tied to you and I'm booking the appointment. The dealers that are really leaning forward to that

spk_0 and making that happen have the most success. Whether that be in the E&FNI or post FNI, whether this

spk_0 is the sales person's incentivized to do it or not, but that's where we see a lot of success.

spk_0 How do you support the product in stores? Because I've noticed with a product like that,

spk_0 there is some training that needs to happen with the salespeople, with sales managers. Like,

spk_0 in order for this to work, everybody's got to understand it so that they can talk about in

spk_0 different steps and stages with the customer, hey, we have this because it helps prevent theft,

spk_0 thefts a problem. Maybe hey, this helps me know where the vehicle is, they show them the vehicle on

spk_0 the app. What type of training and support do you offer in support of the product? So, this is number

spk_0 two. Second biggest differentiator between us and some of our competitors out there. So,

spk_0 we have completely built our entire business to be able to support and scale for the dealer.

spk_0 You know, remove all of the friction, help with training. So, we have a whole three sets of teams.

spk_0 We have a product deployment team which will go out and they're the trainers. They'll go out

spk_0 in the onboarded dealership. We walk in like a SWAT team we've been called. Where we have, you know,

spk_0 four or five folks at the dealership lot. We're preloading the lot, training the technicians on how

spk_0 to install. We're training FNI. We're training FICSDAPS, sales. All of that happens within the first

spk_0 week of our launch. A typical launch takes two to three days from an average account.

spk_0 Larger accounts may take a full week depending on inventory and employee account.

spk_0 But we do that. And then after that a second team comes in which is the account management team.

spk_0 And we usually will visit them again week two and week three of a launch. Make sure we get

spk_0 everybody trained up. They may have missed. Make sure that they instill the muscle memory.

spk_0 Understand how to pitch the product. The the whiff them as we call it. Right. So, yeah. All of that

spk_0 is done. And then we have an account team assigned to that dealership dealer group. We, you know,

spk_0 we provide full reporting, KPI reporting on upsell revenue, profitability, what's working,

spk_0 what's the not working, business practices. We so we end up becoming a true partner. We're not

spk_0 a set it and forget it. Type product. You know, we're not profitable if the sell through and

spk_0 the profitability is not happening at the dealership. So we're we're built to be able to support that.

spk_0 So that's cool. It's interesting. I feel like we're in an arms race of AI right now,

spk_0 automotive. And I also feel like we're sort of in an arms race of connected car. And a lot of

spk_0 success down the road in automotive is going to be about helping to deliver the best value to

spk_0 customers using the data, the information sitting inside that vehicle to help the customer

spk_0 better service the vehicle, help them maintain it, help them track it, help them keep it from being

spk_0 prevented from being stolen. What what do you say is next for connected car? What are some of the

spk_0 biggest untapped things currently? And what what are you guys working on next? It's it's a fun

spk_0 place to be. I'll say we're we're we're having a lot of fun. So, um, you know, we continue. There's

spk_0 two paths from our side. You know, we're we're very involved in what the data on the vehicle is

spk_0 going to look how it's going to look year over year. You know, what's our five year plan, our 10-year

spk_0 plan. What's what's going to happen with EV and you know, what date like we can pull there? You

spk_0 know, obviously we still have service and wearability there for the dealers, but you know, battery

spk_0 replacement and things there are becoming more and more important. Our vision is basically the

spk_0 entire vehicle ownership and and and tie that to the dealer, right? So, you know, I'll you know,

spk_0 you know, owning the vehicle ownership for a consumer and and and tie it with the dealers is where

spk_0 our vision isn't where we want to go. That's very cool. And again, going back to the other issue in

spk_0 the world, the OEM wants to retain back to the OEM, the dealer group we want back to the dealer

spk_0 group. And it seems like this helps us achieve and accomplish the goal we're trying to achieve

spk_0 and accomplish of of of that. So it'll be exciting to see and watch as you go down the road and you

spk_0 see the success you guys have, how you expand the capabilities of this product to continue to deliver

spk_0 more. So last question, Shane, what does success look like for a dealership? Paynes, the picture

spk_0 of the perfect dealership that is fully embracing this connected service and lifetime customer value

spk_0 today and into the future, Shane. You know, you actually disnail there right there, Sam. So,

spk_0 you know, what is success for a dealer in my mind is, you know, if you have we have some stats,

spk_0 so like 74% of consumers that get their car service at their dealership are more likely to buy

spk_0 or come back and buy their next vehicle. And so, success to me is owning that consumer for life.

spk_0 And if we can be that F&I product that allows the dealer to have that connection, that's a win for

spk_0 us and we want to own that world. And I think having the dealer and the dealer groups, having the

spk_0 ability to have that to a connection in real time for the dealer app on the phone in my mind,

spk_0 that's the that's the that's the win for them. Yeah. Well, Shane Wilson, absolutely fascinating

spk_0 connecting with you today, talking about all things connected vehicle and how you can turn a simple

spk_0 product that tracks a vehicle which many have into something that provides a wealth of information

spk_0 to clients and customers as a added value product and finance to retain that customer longer

spk_0 term to the service department is is absolutely fun. Great conversation. Thanks for being here.

spk_0 Any any final comments or thoughts, Shane, as we as we wrap today? I know I know this has been great.

spk_0 Sam I'm glad to be here and you know, obviously the people out in the world feel free or reach out

spk_0 to me directly or my team for any questions. So, thank you very much. And I know I know there will be

spk_0 a lot of information in the podcast notes as a link, including assume a way to reach out to you

spk_0 and then get information more on pricing because that's the one thing we didn't cover that I'm

spk_0 absolutely fascinated about. So backstage, I'll ask that question because for our own group,

spk_0 I'd love to learn. Yeah, absolutely about that piece. So Shane, thank you. Appreciate you being on the show.

spk_0 Thank you.

spk_0 All right, hope you enjoyed that episode. Please give the podcast a rating, consider subscribing

spk_0 to the show and check the show notes for links to what we talked about. Thanks for tuning in.

spk_0 I'll see you guys next time.

The New Auto Arms Race: How Dealers Are Turning Vehicle Data into Loyalty and Cash Flow | Shane Wilson, President at Connected Dealer Services

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