Episode Transcript
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Paul J Daly (00:02):
Yeah, nice though.
You start the episode with ayawn.
Unknown (00:10):
This is Auto Collabs.
Kyle Mountsier (00:12):
Oh, that's nice,
yeah, okay, all the people are
now yawning that are listening.
Paul J Daly (00:17):
That's that's
exactly the intended effect of
any podcast.
Michael Cirillo (00:20):
Did I make you
young? Leave a comment. I wasn't
looking
Paul J Daly (00:24):
so, yeah, leave a
comment. That'd be great.
Comment with your favoriteemoji, yeah,
Unknown (00:28):
let me, let me know you
young. Yeah, oh my
Paul J Daly (00:31):
gosh. Look. We
whenever we get to spend a
little time together in person,which we did recently in New
York, I'm always amazed at twothings. Number one, how short
Michael is.
Kyle Mountsier (00:43):
Oh my gosh. I
hadn't done it in so long. It's
been so long, I apologize. Allright, give me your number one.
I think I forgot my number
Unknown (00:51):
one nose because I
wanted to be like
Paul J Daly (00:56):
number one is how
much faster conversation goes
when you're in person, and ideasflow. Number two, I wonder how
we
Kyle Mountsier (01:05):
get anything
done. I don't understand it. I
don't understand it. And
Paul J Daly (01:10):
I wonder how we
haven't gotten in more trouble.
Yeah,
Michael Cirillo (01:13):
you know, the
one thing that dawned on me is
how fast you guys walk withthose long legs of yours. I
Paul J Daly (01:19):
know I was hauling
up
Unknown (01:26):
upset, going bowling.
I'm like,
Paul J Daly (01:30):
I know I had, I had
the jets on, but made up for it
with because we had time forsome really great pizza.
Michael Cirillo (01:36):
Oh, my
goodness. Oh, well, you, you
actually
Paul J Daly (01:39):
kind of came in
with the data on the pizza call.
I mean, it's, it's a lot easierto find a good slice in New York
City. Granted, like you kind ofmake a left in any pizza
shopping. Really, this is reallygood, but,
Michael Cirillo (01:49):
yeah, but it
was data on it. Like, no, there
was a rating on it that it wasrated by Dave Portnoy, yep, that
we had to test him out and see.
Like, this kind of actually tiesinto what I think we need to
talk about with our guest today.
It
Unknown (02:02):
is data and cooking.
Urbanscience, right there. It's right
there, right? We get these prewe
Kyle Mountsier (02:09):
get these pre
interview things. I'm going to
bring it up probably right as weget started, because it's the
most interesting one liner, andit's all about data and cooking.
Yeah. So
Paul J Daly (02:18):
now I'm hungry.
Unknown (02:19):
You're hungry for data.
Let's get into it.
Kyle Mountsier (02:26):
All right, we're
hanging out with Dave. Dave,
man, thanks for joining ustoday. Your beard precedes you
so
Paul J Daly (02:35):
literally, it looks
like such a such a burly, manly
beard that when you walk around,the first thing to break the
plane of the finish line is yourbeard?
Unknown (02:41):
Gosh, I hope so.
Kyle Mountsier (02:44):
It definitely
allows me to walk into a room.
Yeah, it's, what did you say,Michael?
Michael Cirillo (02:49):
I said, when
Dave shaves his beard, it
reveals another beard.
Paul J Daly (02:53):
That's actually
just his beards. Beard,
Unknown (02:55):
there's a skin about,
Dave Karasick (02:57):
yeah, this is the
day to beard. I have a night
beard for later on. Yeah,
Paul J Daly (03:01):
my evening, dude.
So
Kyle Mountsier (03:03):
good. All right,
I have to read because we, we
like to, you know, get tothere's, there's a little bit of
background, there's a littlewe're not, we're not afraid to
say, like, we ask questions ofour guests before they come on
here. And the way, I don't knowif you wrote this, someone else
wrote this. GPT, I don't carewho wrote it, but this is the,
this is the first phrase,because we got to dive into it.
It said, Once Upon a Time in theearly 90s, and that now I'm
(03:25):
like, sitting by the
Paul J Daly (03:26):
I went right back.
You know, I know where I was inthe early 90s, right? I'm like,
I that was, that's
Kyle Mountsier (03:30):
where I was. He
said I was a broke, unemployed
chef with nothing but a dreamand a serious lack of drops
prospects. So naturally, Iwandered into a GM dealership
make
Paul J Daly (03:41):
$70,000 in your
first year. I'm in,
Kyle Mountsier (03:46):
okay, take us
back to broke chef, because now
I'm super intrigued by the chefportion of this whole legacy.
Dave Karasick (03:54):
Gosh, I you know,
I had a culinary career that
started at a small hotel in myhometown, very nice hotel, and
quickly grew to expand to whereI was a corporate chef for a
company called Gilbert Robinson,which they they ran darrell's
and woohans, if you remember,those, those restaurants. So I
was a corporate chef for themand their test kitchen. And back
(04:18):
then, we were making everythingfrom scratch, but as you know,
as time and things progress,they wanted things to be faster
and quicker and easier toexecute. And so they started
going away from, you know, freshingredients and and homemade
recipes, and started bringing inpowders and bases and and things
(04:39):
like that. And it just reallykind of took the the umph out of
it, right, the fun out of it.
And so the last time I, when I Igot fired for speaking my mind
about it, and I didn't haveanything to do. And, and
somebody said, somebody said,Hey, if you're going. Be
successful and you're gonna makesome money, you need to be
(05:01):
selling big ticket items, and itwas either real estate or cars.
And real estate, I realized Ineeded to have a license for and
I needed to have training andstuff like that. But when I
walked into a GM dealership,Hampton, Chevrolet and and
Hampton, Virginia, they hired meon the spot.
Paul J Daly (05:18):
Check your pulse,
Dave Karasick (05:22):
right? Yeah. And
I was selling cars the next day.
I just gotta, here you go,here's the keys, here's the
tags, there's the cars. Goodluck to you, right? And
Michael Cirillo (05:32):
when you're
when you're a chef in a test
kitchen, like, does everyonewear a bracelet that says, What
would jack papen do? Or, like,what would, what would Julia
Child do? Like, what? Because?
Because, isn't he, like, themaster chef of test kitchens?
Dave Karasick (05:47):
Yeah. So it was,
it was unique, right? So the I
ran the entire kitchen, but wehad a separate part that only
specialized in a few menu items,and so that special part was
responsible for quality testingand then going out to the
consumers after they ordered itand asking, you know, very, very
similar to what we do withsurveys. Now, right? How did you
(06:07):
enjoy? What was a flavor like?
What would you like to seedifferently? And, you know, got
that feedback, and then if itwent well, through that test
kitchen process, then we rolledit out to the entire menu and
then across the company. And sothat
Michael Cirillo (06:19):
always
fascinates me, because I'm like,
Look at the lengths you'rewilling to go to for a $35 meal.
And imagine if there was somesort of R D customer experience,
you know, department in adealership that's like, this
isn't a $35 meal, it's a $68,000buy. And we'd like to just, you
(06:39):
know, try a new we're trying outa new experience to make it
better for you. Would you bewilling to participate?
Kyle Mountsier (06:45):
Yeah, right.
Well, they don't have R and D.
We don't. We literally don'thave R D as a lane in retail
auto, not,
Paul J Daly (06:53):
not largely, there
are some dealerships that have
it some kind we don't have, wedon't have a lane in auto for
it. We do. I mean, I work
Dave Karasick (07:02):
with a lot of
dealers with our tools that are
able to do research anddevelopment based on the data
they see and change theirprocesses and get better. So
yeah,
Paul J Daly (07:10):
okay, then let's
get into that. Because you
basically stayed in the industryfor 22 years. You eventually
became a GM, you know, in yourwords, you said hurting, hurting
sales people, and managingchaos, making processes work,
squeezing every dollar of profitout. So you've been in the seat,
you've been trying to make senseof what works and what doesn't
(07:30):
work, navigating a lot ofsituations happen in the 22
years, starting in the early90s. So now what you're doing is
actually back to what you kindof like Test Kitchen mode. Yeah,
you said with the data. So,like, tell us about that.
Dave Karasick (07:47):
Yeah. So, full
circle, right? So, you know, one
of the important things is toget feedback on what is
happening currently, so you canunderstand if there's any gaps
in improvement, right? And so,you know, you I've always been a
data guy, and it was a very easytransition once you get in the
world of automotive. And dataseems to come from everywhere,
right? But it's tough to makesense of it, and it's tough to
(08:09):
know which data is is best touse and how to utilize it and
then take advantage of it. Andso, you know, I really spent the
last eight or seven or eightyears working with dealerships
on these, on urban ScienceSolutions, helping them continue
to squeeze every dollar out of aout of a deal, continue to
squeeze every sale out of abucket of leads that they're
(08:32):
getting on a regular basis. Andthe, the way you got to look at
it is, is, you know, how havethings been progressing over the
last, let's say, 90 days, right?
You know, I the I'm gonna bespeaking to past performance
predicts future behavior. Now, Istarted that, that little catch
line in high school, becausethat's how I choose, chose to
how I ask girls out, right? So,if they if they were nice in the
(08:57):
past, if they had goodreputations, you know, that I
would consider them if theywere, you know, they're total,
you know, if they're told bees,then, you know, I just, I went
on down the road. And I
Paul J Daly (09:09):
think the ladies
have a similar process too.
Unknown (09:13):
I'm confident in that,
yes,
Dave Karasick (09:15):
absolutely. Well,
you know, anyway, so it worked
also well for me anyways,married several times. I'm a
great closer, but a terribleretention rate. But the fact is,
you really got to understand thebackground of what's happening
at your dealership. And there'ssome K keep eyes that you can
(09:36):
look at that say, Hey, if Idon't change anything, this is
going to continue to happen. Andreally it's identifying those
KPIs that I want to helpdealers, you know, kind of look
at and find out, hey, what'shappening in my background, and
where can I best deploy thatchange to get a better to get a
better result, you know, fromfrom the processes that we're
(09:56):
doing, or from the sales thatwe're that we're having. Leads
that we're generating, theinventory that we're that we're
carrying. How can we get betterat doing the things that make us
who we do, who we are in theautomotive world?
Kyle Mountsier (10:09):
You know, one of
the things that I've known about
urban science and the datathat's available there, and some
of actually when I use that datawhen I was at a dealership, is
there's a lot of likedemographics, like local data
available, and you've saidsomething like past performance
is future results. One of thethings that I've that has always
been of interest to dealers iscon questing or targeting net
(10:34):
new areas of business aroundthem, or net new personas. Yet
what I'm hearing you say, andwhat I've seen the data say over
and over and over is the buyingmatrix of a given dealership is
very localized. It's very andmeaning by persona or by area,
(10:55):
and that if you were to just godeeper with that persona or that
area, you would drive broaderresults, because there's enough
there. There are you seeing thatdata still ring true, especially
as people are becoming less andless loyal? Yeah,
Dave Karasick (11:12):
so there is a lot
of there's a lot of interest in
our dealers and knowing wherethose customers go when they
don't go to them, right? Andit's really that's kind of the
gage, the model that dealers arelatching into. If I understand
why the customer didn't buy fromme, then I can improve my
(11:32):
processes so that I don'taccompany that in the future.
And you know, whether it beknowing who the dealer is that's
taking the leads from them,knowing where geographically
those leads are coming in from,knowing which sales people have
challenges with different leadsources. All those things really
when the dealership understandsthat they can start to adjust
(11:54):
processes to better improvetheir tactics at the store and
drive measurable results. Whatwe see is that most dealers,
regardless of the customer,started as an Internet lead, a
phone lead, or even a showroomlead, but the follow up is a
one, is a is a one size fits alltype of scenario, right? We're
(12:14):
just these are the templatesthat we have. These are our
processes that we have. But itdoesn't seek to understand the
customer where they're at in themarketplace. And one thing that
customer and cars have in commonis that they're both very
complicated machines, and wehave to know both of them very
well in order to in order tosell more cars and be sales
(12:37):
effective and with ourdealerships. And so the question
is, we know a lot about thecars, right? We get, we get
brochures on them. We get, youknow, all kinds of tech specs
and websites dedicated to thespecs of the car to help our
people understand them. But whattools does a dealership have to
better understand the customerjourney? And that's what's
really kind of been a lightningrod in the industry, so to
(12:59):
speak. CDPs have taken off, forexample, because, because, you
know, they're interested in allthat customer data to be able to
fine tune internal processes totake advantage of that. And it's
relatively easy. Once you've gotthe data laid out in front of
you, you can see these trends. Imean, they light up like, like,
like, flashlights in the dark.
You know when the solutions andall of a sudden dealers click
(13:20):
and they see that. I'm like,wow, why aren't we doing a
better job with this? We have aprocess in place. Well, maybe
it's not the right process andand, you know, any kind of data
that you can get to uncover whatthose processes is really
beneficial.
Michael Cirillo (13:35):
This is really
Kyle and I were talking about
this just the other day, the howthe technology can speed up the
human interaction piece, andthat, you know, the this, this
thing in our industry, whereit's like tech, first tech,
first tech first. You know,going back to what now Kyle and
you both have said past datapredicts future behavior, and
(13:57):
behavior leads us to the humanand as long as human beings are
buying cars, then we need thesetypes of insights that you're
talking about to better informthe way that that we should
behave for the customer, right?
And so often it's like thestrategy begins with with a
shiny object, and that's why itfalls apart and why there's no
(14:23):
adoption. I like what you'retalking about here. It's like,
but we can use the data topredict where we should move
next. But the critical componenthere is that a human being must
take an action, correct?
Dave Karasick (14:37):
And that is, it
is the human aspect that really
bonds the customer to thedealership, right? How do you
help the dealership move fromcontent? How do you help the
customer that you're workingwith move from contact to close,
right? All customers have thesethese things in their brain that
they need to overcome beforethey're going to purchase a new
car. And you know, when I got inthe industry 20 plus years.
(15:00):
Years ago, it was, you know, youhad to sit in front of a
customer and you had to askcertain questions, right? Who's
gonna be the primary driver?
What options did you have onyour last part you want in your
next car? I mean things to helpus understand where the customer
was, not only in their journey,but what they were looking for
specifically, so we could tailorour sales approach to the
customer, to meet them wherethey are in the marketplace.
Well, that same need from thecustomer still exists today. The
(15:23):
problem is, is that now thatwe've got this interference of
the internet lead and theemails, it's hard to build that
personal con, that personaltouch again with the customer,
like we were when we were faceto face, shaking hands, and so
the dealers that are really kindof the dealers that are
utilizing the data to changetheir behavior on how they work
(15:49):
with the consumer is reallybuilding value in the consumers
mind and loyalty and long termengagement we've got we see, we
See lead sources that that closein a few days. We see lead
sources that generally close ina few weeks, and then we see
lead sources that might closeafter two or three months. And
if the dealers don't recognizethat some customers are high
(16:12):
funnel and some customers arelow funnel, and they're not
attacking those customers wherethey are in that journey, then
all of a sudden they they riskbeing irrelevant in the
customer's mind. They keepsending out, hey, ready to test
drive? Well, just so happensthat this lead source, you know,
the data shows this customer isprobably two months away from
making a decision. So does thattest drive? So
Paul J Daly (16:34):
the answer is no,
stop asking Correct, right?
Yeah.
Kyle Mountsier (16:38):
But how do you
keep the team engaged on
something like that. What areyou seeing in success to keep
the because I'm, if I'm asalesperson, I'm like, How do I
find a deal in next two months?
Right? It's like three monthsfrom now, months you kidding me,
when you're ready, right? Like,yeah, how do you how do you
adjust processes to keep yourteam engaged and not like, let
leads go to die, or let leadsget missed that need to be
prioritized, that are maybegetting de prioritized because
(17:00):
of volume, right? Yeah.
Dave Karasick (17:04):
So there's a
couple of different ways that we
suggest. First of all, if youknow who's left your business
customers in your CRM right now,the average defection rate in
the United States right now isabout, it's just close, just shy
of 20% 19.6% so that means theaverage dealer opens up their
CRM in the morning, almost 20%of those customers have already
left the marketplace, and thedealer doesn't even know about
(17:26):
them, right? So, so for thefirst thing, first thing is, is,
if we eliminate follow up onthose customers, now, every time
the every time the dealership isdialing for dollars or typing an
email to a consumer, they'reactually reaching to somebody
who is still in marketplace,right? And so that confidence
gives the BDC team, or theirsales team the initiative that
(17:49):
they need to continue this longterm follow up. Secondly, if you
approach it from the customerstandpoint, you look at it like
I need to know where thiscustomer is in their journey. In
order for me to be effective tothem, we have to ask, and I've
got, I had one dealer, greatexample. And she saw from her
data that she had some customerscoming in and internet leads
(18:12):
that were very low funnel. Shehad some customers that were mid
funnel, and she had somecustomers are a high funnel. And
she's like, how do I send amessage out to these customers
that's going to resonate witheverybody, right? And so I don't
remember the exact the exactverbiage she used, but her first
email went out to the customer,hey, thanks for inquiring with
us. Right? We value ourrelationship. If we know at the
(18:36):
dealership that oftentimes whena customer you know sends us
information or asks us aquestion about a vehicle. They
could be just starting theirjourney. They could be somewhere
where they're looking andresearching models and
equipment, maybe trim levels. Orthey know exactly what they want
and they're ready to buy. If youlet me know where you're at, I
can make sure that I'm sendingyou the information that's
(18:58):
relevant for where you are inthe marketplace. And that kind
of approach. All of a sudden shestarted hearing from those low
funnel customers. She startedhearing it's like, well, if you
just write, if you can give methis deal, then I'll buy the car
today. And then, consequently,she's also hearing from those
customers that were higherfunnel. Hey, I just started this
process. Don't really know whereI'm going to land. My cousin has
(19:20):
a car, has this car? Justthought I'd check it out. At
least she started getting someengagement from them, because it
resonated with them. It wasn'tthe same approach that she was
getting from every otherdealership, right? Come in, now,
come in, now, test drive, now.
Test drive now. It sought tounderstand where the customer
was in the marketplace so theycould address those concerns.
Right, mid, mid funnelcustomers, they're worried about
their trade, they're worriedabout being able to finance.
(19:42):
They're worried about being ableto do they have money down
payment, right? And so again,how does a dealer take those
customers from contact to close,knowing where they are in the
funnel? Provide them theinformation that their needs if
they just send out templatesthat don't try to move forward
because. Customer forward in theprocess, or at least a system.
Customers close their ears, theyturn off their emails, and they
(20:04):
stop responding. So
Paul J Daly (20:08):
I mean, as we get
close to landing the plane here,
I always like to ask thisquestion, because of all the
people listening, typically,there's a lot of low hanging
fruit that you're aware of,because you see it time and time
again. So I always like to thinklike, okay, how can the most,
most people possible dosomething meaning, meaningful
from this conversation, where doyou typically see the lowest
(20:30):
hanging fruit, where you analyzesome data, or you step into a
situation where, like, a lot ofpeople typically adjust this
first or realize this when theyget their first look,
Dave Karasick (20:41):
yeah, when they
get their first look at the
data, the number one problemarea that that just peaks out to
every single dealer that gets atthat, aha, that, Oh my gosh, I
didn't realize it is theirfollow up came in somewhere
between between the eighth dayof follow up and the Maybe the
21st day a follow up. It check,they check the box that they
(21:04):
complete it, but it's notresonating with the customers.
And literally, that's where wesee almost 40% of the defections
that take place within a dealer.
CRM is in that kind of timeframe. And so instead of just
checking the box and sending anemail and checking in, we follow
Paul J Daly (21:20):
him, right? Yeah,
follow it up. Dig into
Dave Karasick (21:23):
it with some
purpose, some vigor, some
meaning, something authentic,right? Greg CARDONE used to say,
give, give, give, right? Whathave you given? Given the
customer? To inspire them towant to do business with you, to
inspire them to want to emailyou back. Are are you just
checking boxes, or are youworking? Are you selling? Right?
That's like, that's the keything. Are you connecting with
(21:44):
the customer? I think that'sreally the important message we
want to put out
Michael Cirillo (21:48):
there. I mean,
this just emphasizes what we
care so deeply about. We'regoing to be talking about even
more at ASOTU CON, and gettinginto this kind of information in
more detail. You know, thequestion comes up, well, how do
we do it? How do we do it? Thisis exactly why you need to be in
the room at ASOTU CON. But man,this has been such an enjoyable
conversation. We can't wait toconnect with you in person,
(22:09):
which is really, I think thewhole point of this thing is,
how do we get from the tech tothe in person? Yes, faster,
exactly. Thanks so much forjoining us on auto clubs.
Dave Karasick (22:19):
I appreciate the
time guys, and I look forward to
meeting you guys in person atthis other
Michael Cirillo (22:27):
conference. Do
you think a t shirt would sell
if it just said I'm high funnel.
Kyle Mountsier (22:36):
I mean, at what
like it would sell? Like, okay,
Paul J Daly (22:41):
okay, where does
that sell? That sells best in a
city or at a at a meetup of
Kyle Mountsier (22:48):
marketers? Yeah,
it's like a CMO conference. It's
Paul J Daly (22:51):
like, it's like
guys, a guy's willingness to
say, like, I'm not reallyinterested yet, but you should
try to get my attention. I'mhigh funnel. I'm sorry, non
committal. Is
Kyle Mountsier (23:01):
anyone actually
low funnel, though? Does anyone
want to Oh, are you kidding me?
Paul J Daly (23:09):
Bar Yeah, low
funnel, yeah, that gets you to
all kinds of weird situations.
No,
Kyle Mountsier (23:16):
but I mean,
here's, here's what's
interesting. And I think thisis, this is what we're all
chasing, this thing that I don'tknow, 2005 through 2009
everybody was like, Oh, theinternet exists. Like, now we're
gonna know everything abouteveryone. And we still are
sending 13 day follower followup emails that say, are you
still interested in the car thatyou inquired about? 13 days that
(23:38):
you were interested
Paul J Daly (23:39):
in? Yeah. I think
the biggest takeaway from that
whole conversation for me washis his last insight, he said,
every single dealer they talkto, there is a gap between what
they are doing and what theythink they are doing. That's
right. And I think that that'sthat, that's where the data
comes in. Data is like, this iswhat you're actually doing. The
Michael Cirillo (23:59):
eye opener for
me is when you consider, you
know, because we kind of talkedabout, he had mentioned, you
know, first interaction toclose, right?
And I just think most dealersare in rural markets scattered
across America. I mean, evenCanada, for those that are
tuning in from from Canada, mostdealers, franchise dealers are
(24:20):
in rural markets, and you lookat the population of a rural
market, let's just say it's15,000 if you get 1000 leads a
month, and you burn through 95%of them, you are effectively
burning the entire population ofyour community in six months.
Wow. Dang.
(24:41):
But then I think about the like,I actually wrote Prius tundra
forerunner, because I thinkabout, well, what's the flip
side of what Dave is talkingabout? I experienced it when you
go into a dealership that has adialed in process, and they know
how to handle the opportunities,whether they're high funnel, mid
or low, and they know how torecognize it. And. Her team is
trained to pick up on thosecues. It's like we went from
(25:04):
buying a Prius for our kids tolearn to drive on at a Toyota
store 28 days later, soimpressed with the experience
and how they interacted with usthat I walked in and said, I
want that tundra. And now we'realready back into thinking of
like my wife really likes thenew forerunner. Whoa, they're
gonna get three deals out of usin the next, you know, 18
(25:26):
months. And now Emer, who youguys know, his wife's looking at
a forerunner, because she's seenhow excited we are. My dad is
thinking about trading in his toget a ton a Toyota like, just
think of the impact of pickingup on cues using data to the
behavior piece that was the theunlock for me, ROI data to
(25:47):
inform behavior. It's
Paul J Daly (25:49):
ROI you can't see
the ROI you can't see going
stupid. Come
Kyle Mountsier (25:52):
on, put a panel
up on that. Let's go. All
Paul J Daly (25:56):
right. I think
we've done enough damage for
today. Thank you for being herewith us on behalf of Kyle
Mountsier, Michael Cirillo andmyself, thanks for being here
with us on Auto Collabs.
Unknown (26:07):
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(26:38):
Welcome to Auto Collabs. Oh.
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