That the company knows I'm, yeah, I'm fair or, you know,
that's a cool way to do that, I like that, yeah.
So different companies have different approaches,
but at the end of the day,
almost no matter how you say it,
less than 1% of customers will say no,
because everyone is used to being recorded,
phone calls recorded all day long.
So when we're talking like this,
and you hear the idea for the first time,
or if anyone's listening to this podcast
and they hear the idea for the first time,
and it's like, I don't know about that, go on and try it.
And you'll see that people are totally fine being recorded,
especially if you frame it the right way,
which is very truthful.
Can I need to record this
to ensure I'm giving you compliant information?
I need to record this, yada, yada, yada.
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So, well, I used to be completely a skeptic
with respect to recording customers in store,
you know, like organically.
And the moment my perspective changed on that
was when the rise of just, you know,
the Instagram influencer and automotive.
Today, if you go on Instagram, there's dozens.
I mean, hundreds probably of dealers, salespeople,
that just record their interaction with customers.
Like, I'm, you know, we literally, you know, nomad content,
the company that I talk about a lot on this platform,
like they literally do this, they create content this way,
just recording in store and then clipping the,
you know, the hot moments.
That completely changed my perspective.
I did not believe that
it was just something that I didn't think was,
you know, customers would be okay with.
But all these dealers throughout the country
that began creating content for social media,
just organically done in their store and recording it,
completely proved me wrong.
So I will admit, like I was a very big skeptic,
but I'm, that, you know,
that changed my perspective on it
once the rise of all these accounts.
Okay, so.
I'll drop one point onto that too.
Because there's a pessimistic way to look at that.
And it's like, okay, now someone's always listening
and blah, blah, blah, taking advantage of customers.
What I really like about this trend
of recording being,
starting to become very commonplace
for in-person sales conversations.
Yes.
It makes the world more honest.
Sales in most circles,
that it's not an honest,
honesty is not the word most closely associated with sales.
The incentives are wrong.
Sometimes people end of the quarter, end of the month,
like do this little thing to close a deal.
Well, now that stuff all gets caught.
There's no sweeping stuff under the rug.
So it makes the world of sales more honest,
while also juicing performance,
making people better at their craft.
So I'm really excited about the impact
that this has on society over the next three to five years.
Tell us, and by the way,
investors clearly agree with you by them betting on you,
you know, at such a large stake.
So you're not alone there.
Tell me what has been,
well, tell us about the actual experience for dealers.
What are dealers,
how are they benefiting from this today?
It's great.
So you're getting recorded conversations.
Take us to the next layer now.
Once you get that information,
what does the data tell me?
What am I doing with it?
There's, I mean, you can talk about
a few different parts of the business.
You've got either the sales side,
so the sales side, FNI office, and then fixed ops.
They probably have what was split into three buckets.
The sales side, I give you that one anecdote
of just improving performance.
It's like sales are up in a lot.
They're just making very,
like they're making a bunch of unforced errors.
You catch those and fix them.
How do you catch them?
Sales reps recording in the field.
There are ways in the tool to coach yourself
as a sales rep.
That's actually our preferred way for folks getting better
and that's what we push them behavior towards.
I know I can say more about that actually,
because when ultimately you're way better at learning
when you are in a learning mindset
and like seeking it out,
versus when someone is pushing training to you.
But what we can come back to that,
basic sales training, the lot to close more.
Another thing that happens is you're benefiting
not from the sales training,
but also from compliance in the FNI office.
So for the first time, you now have your comps recorded.
You've got a record.
We had this one dude who, before they got zero,
this guy had a customer sue them six figures
for failure to disclose in the FNI office.
And this, to say the least,
deeply affected the dealership principle.
So we get them on zero.
And the reason that he signed up,
like right after the first demo immediately signed up,
cause he's like, I just need to have a record
of what's going on in that office.
So this never happens again.
I can never get that six figure lawsuit again.
And at first, this person, two purposes.
One is compliance for their FNI rep.
Make sure that person's saying the right things,
hold them accountable.
The second piece is the accountability to the customer.
So you don't have a he said, she said legal suit.
Instead, you have a record of what actually happened.
So that's been a, that's actually,
it's probably been the biggest driver
of like our quick people who sign up right away.
It's because they've had a bad experience
in the FNI office in the past.
They've been sued and now they want to get some CYA.
Yeah.
They've gotten burnt and compliance
is probably the forcing function there.
Okay. So that's FNI.
You mentioned sales.
What are the fixed stops?
Yeah.
Fixed stops is because a lot of folks,
well, a lot of folks think of it as sales,
but a lot of folks don't think of it
as much of a sales process,
but there's usually a very critical sales component
of any sort of service of fixed stops.
In some of our other industries,
you might think of HVAC as a parallel.
You've got this technician going out
and fixing your HVAC machine.
They're mostly figuring out what's going wrong,
diagnosing the problem and fixing it,
but it's a very critical sales component,
which usually comes down to the membership.
And this drives a ton of the margin in your business.
So in fixed stops, folks are recording,
and yes, you get the compliance,
and yes, you get peace of mind
that folks are representing your brand the right way.
They're representing you in a way that's building your brand
rather than tearing it down,
giving a good customer experience.
Also handling he said,
she said concerns or complaints that come in.
But most importantly,
you're able to track and confirm
that people are offering the membership at the end
or beginning of the service.
And that membership is what's driving
a ton of margin for your business.
And with something like Ciro, you're able to see,
are they offering it?
Also, are they offering it in a way that's effective?
Are they framing it to doing the proper price conditioning,
the proper value buildup?
When they offer it,
or is it just something that's tacked on as an afterthought
because you gave them in the standard operating procedures
they're supposed to ask for it.
Jake, are you seeing more people in dealerships
using the self-improvement tool?
Or is it like the management is crunching the data
and then meeting with the people or the teams
and working on improvement?
What do you see more often?
There's not a ton of data crunching
because we try as a company to handle the data.
Well, you're providing the insights.
You're essentially giving me the full insight on,
okay, got it.
Who's using it?
Do you have this management layer
or the principal spending most of the time?
Or is it the folks recording spending time?
It's a blend and it's very different company to company.
Our most successful companies,
the people get the most ROI,
are very much sales rep led.
People are bought in that this is for me.
And so they're spending a lot of time listening.
And we've done a lot of studies
across a lot of industries.
We haven't yet done this in the dealership space.
But the number one behavior
that correlates with ROI on this platform,
primarily through sales improvement,
faster, higher clothes rate, higher average ticket size.
The number one behavior is listening time.
If you spend more time listening in the platform,
whether you're listening to yourself
or top examples from other people,
how someone handles a subjection,
how do you very naturally offer or ask for the clothes
in a way that's both like kind of
a little bit push and aggressive
but also very natural and still polite?
How do you do that?
How does it actually sound?
Because I role play with this guy
and then I get into the customer conversation
and I don't know what they're doing
but their numbers look very different from my numbers.
So I wanna hear it.
When you get people bought in
on listening to their own game film,
that drives behavior change.
Wow, that's unbelievable.
So many questions.
Okay, brass tacks for a second.
Let's do a tangent here.
Have you been able to quantify
like the value dealers are getting out of this?
Like have you been able to put a number,
your conversion rate increased X amount, Y amount,
anything like that?
We don't have a case study in the auto space yet
that I think is statistically significant enough
to publish and like put our brand on the line.
Most companies on zero are getting at least 20,
if not 30, 40% sales improvement,
top line improvement.
That's when you combine the close rate improvement
with the average ticket size improvement.
And that's average, you have your top reps,
the folks who are,
I guess not necessarily your best performing,
but the people who are most bought into the tool
drive a lot of that.
And then the numbers I quoted
are the average for the business.
A funny thing that we have to do is
in every sales process,
when you have a meaningful expense,
you have to quantify the ROI
or somehow allow the decision maker to justify the price.
And one of the hardest things for us
is that the ROI is so massive
because the status quo is so bad.
Like people are just literally getting zero coaching
is the status quo or role playing
and a little bit of that.
The status quo is so bad
that the ROI, when you start implementing this tool
is so massive that it's hard to get people
to believe case studies of past customers.
That's been a bit of a funny thing to run up against.
We'll call it a good problem,
but a little bit of a problem nonetheless.
Yeah, and you know,
one of the interesting trends in our industry
that I've noticed is that there has been,
so first of all,
there's been lots of dealership consolidation, right?
The industry continues consolidating
your fewer dealerships, bigger dealer groups.
And along with that,
you get just more investment in training
because these companies just have more economies of scale.
They invest more in their teams and their people.
And so we have seen the rise of training
and just, you know, information gathering.
People want,
people are just hungry for more information to get better.
There's multiple training software companies
in this industry, right?
Like we literally, what we do
is we put out insights to the market,
but there's just been a rise in this
and dealer groups have been leaning into it.
And it's been rising very, very quickly.
So that's one thing that I think just makes a lot of sense
in, you know, when you talk about helping get those insights
to the salespeople and improving them.
My follow-up to that is a more specific question is,
you mentioned listening is the number one
kind of differentiator with the strong performers
and the weak performers, which makes sense to me.
You know, listening is,
it's one of the things that, you know,
first things you're taught
and you should be doing in sales,
actually hear what the person wants
and the negotiation, anything you wanna listen.
But I'm curious if there's like,
if you've been able to identify any,
like get even a little bit more granular,
like is there like,
hey, if you listen on average more than 70% of the time,
your close rate is 80% higher.
I don't wanna fish too deep here,
but I'm just curious if you have,
you know, you don't have Facebook,
there's that famous publicized staff from Facebook
that was like, if you get eight friend requests,
you're like 99% likely
to be like a lifelong Facebook user or whatever.
So I'm curious if there's any patterns you've identified
in dealership sales that, you know,
everyone here listening could benefit from.
It's like, hey guys, you listen three times more
than you speak, you're 50% more guaranteed
to close the sale.
So like shut up and listen.
Yeah, I wish I could give you the civil bullet.
What we've found so far,
and maybe we'll learn more as we keep going in space,
sales is nuanced, different people are good
at different things.
It's like one of the basic things is like,
are you just following the process?
And then another one of the basic things
is that example I said earlier
where this dude was saying,
basically giving the customer the option
or telling them to don't make a decision now,
call or text me later before they made the close.
Everyone tends to have like,
at least one like kind of big mistake they're making.
And it's like, okay, a big mistake
that you can fix with like too many,
the second that sales rep hears that,
that they're doing that, they stop it,
their very next conversation and now performance goes up.
I like to call them boiling point problems
where it's like kind of like water.
One degree takes you from water to a gas to water vapor.
And it's such a big transformation.
Like how do you go from good water?
Something completely different
with just one degree change in temperature,
same thing with sales performance.
You can go from like stagnating, stagnating, stagnating
to massive performance improvement
with just a small little unlock.
But what that unlock is for everyone,
so far we've tend to find that it's different.
Yes, there are guidelines.
Most people should talk slower.
Most people talk too much and don't do enough listening.
That's like, that's globally for sales
in every industry in person over Zoom.
But there's a, we're waiting to,
maybe in the next 12 to 18 months,
we'll be able to publish like,
here is the state of automotive sales.
And like one, two, three.
Stole the words out of my mouth.
I swear to God, I was just about to say that
the obvious play here is to take all this information,
anonymize it and glean these trends
and really kind of deep insights about the industry.
Cause you literally have ears in just hundreds of dealerships
and that's very powerful when you take that information
for people to improve, right?
Not with completely anonymous,
but I mean, it's extremely powerful.
Speaking of that, how does it work with data?
I have to imagine, you know, lots of dealers listening.
Like, hey, you know, what does your do with my data?
Is it like completely safe and stuff like that?
And I'm curious to know like, how, you know,
how do you handle data and just confidentiality?
Yeah, that's been a very important topic
from very early on for the exact reasons you mentioned.
We're SOC2 compliant.
We, like customers own the data.
You record it, great.
We're storing it.
You want it deleted and great it's deleted.
Like customers own their own data.
We for most of our customers
are able to do these sorts of cross industry insights.
So you de-identify the data so it's anonymized
and you also aggregate it sufficiently.
Now it can be used for insights.
Powerful.
Yeah.
So we're going to start that sort of like state
of automotive sales.
We're going to start doing that
for a few of our other verticals,
like moments it's being worked on right across the room.
And that should start coming out
and then automotive will probably delay
six to 12 months from there.
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Okay, got it.
Now, going back to the department by department,
you mentioned sales, fixed ops, FNI.
I think the forcing function
or like a compliance perspective makes total sense
for someone to just need to adopt this.
From the people that don't need to adopt it,
don't want to adopt it, right?
Someone that's listening to say,
hey, this is really, really smart, right?
I think, you know, I have a large sales team.
I can't be hands on with every single one.
This can really improve my performance.
Is there any specific department
where you see the largest incremental improvement
like the most ROI driven to a dealership?
If there's anyone specific, I'm like, you know,
I'm curious if it's sales, if it's FNI,
I mean, any specific department where it's just like,
hey, this is like a home run right away
because it's such a quick, quick upside,
a quick way in the students,
this gets implemented within a dealership.
I mean, the FNI one is the one
that's just straight down the fairway.
You got to do it, turn it on,
because one is the compliance piece, you get the COA,
but two, that just drives so much of the profit
for your dealership that you want that to be buttoned
on the big delta between the top and the bottom performance.
That's a great fricking point.
The delta is so wide there that you can,
if you can improve that by 20%,
it's greater than a potential 20% improvement
in the sale or a normal vehicle sale or something.
Yeah, yeah, definitely.
And then the rest, like if you're dropping,
putting this into your fixed ops,
putting it into your sale side,
I mean, that's our bread and butter.
That's what we've been doing since we started,
but the FNI is just so easy
because there's also so few people.
Like the implementation is like very, very simple.
Of course, our encouragement is to implement dealership wide
when you start because you sort of do it all at once,
get over the behavior change once,
but FNI is the no-brainer.
Yeah, the more we're talking about this,
the more I'm excited as you can tell.
It's because it kind of reminds me of athletes
watching tape, like a football player,
like you study tape, you watch yourself play.
It's like, I literally, as cringe as it is,
I'll watch some of my podcasts and I'll see.
I had this period in the podcast
where it was like a month long time period
where I kept going like, mm-hmm,
but at a very high volume
and I just had to relax with that.
So you pick up these little things
and it teaches you how to improve
at what you're doing, your craft.
It's crazy the things that people realized they're doing
that they did not know they were doing.
I didn't know I was saying that.
Like people cringe so hard
when they listen to themselves the first few times
because it's like, oh my gosh, I can't believe
I'm saying that.
People are saying like, like, like, like, like so much.
And then, yeah, it's hard to not improve.
That's why I say spending time listening to yourself
and others listening to the game tape
is the number one behavior that correlates
with performance improvement
because you just notice so many things.
You got to do it.
I'm telling you, the first thing I thought about,
I always think in these analogies,
I don't know why my brain's got a wire to that
probably because of the VC industry just scars you
when you think about everything like,
oh, we're the Uber for that, we're the whatever.
And so the first thing I was like, wait,
this is like Google Analytics.
Of course, you're more than that, but at its core,
it's Google Analytics is like,
it's just part of every single data-driven dealer's day.
It has to be, it's literally a virtual showroom.
And so the first scene that came to my mind was like,
this is Google Analytics for a physical showroom
which is, you know, obviously makes total sense.
So before we wrap up, in terms of like implementation,
how painful is that pain list?
Like, what is that like actually?
Cause it sounds great, right?
I would likely, in my dealership,
I would likely try to put in as many tablets probably.
I probably wouldn't want it on people's phones.
I'd prefer the tablet route.
To me personally, it seems like the easier option here,
you can keep it running nonstop.
You know, it's fully charged all the time.
I didn't, you know, I guess the downside is,
you know, if the salesperson is not at their desk,
so that's something that comes to mind.
How do you handle that?
Most of the users are on their phones.
On phones, okay.
Sort of whatever device you're gonna be most comfortable
having most of the day, that's what you should be using.
And phones have great microphones.
Everything is uploaded secure.
Personal phones work totally fine.
How painful is the implementation or painless?
I don't know, if I was to put it on a scale,
what do you think of,
if someone thinks of software implementation,
or as you think of software implementation,
what's like an example of painful one?
DMS, dealership management system.
It's a bit ERP.
It's extremely painful.
It takes like months.
It's very, very painful.
So on the scale of,
and then what's like the easiest
that you've seen, easiest software?
It's not a good sign
that I can't think of something very quickly.
Wow.
I actually don't have a great example.
Because most, it's like, you know,
most things require setup and preferences and this and that.
And then here there's some change management, right?
I have to, you know,
I have to speak with my team and explain the value
because if I don't explain the value,
they're not going to put it on their phones.
And so that's, to me,
that's probably the most important part here,
or painful quote unquote.
We're definitely way shorter on the scale from the DMS,
but this is not the like clickings turned on,
you're good to go.
Generally, two week process.
I mean, the tech is up and running in like minutes,
but it's the people change management
that we want to budget a good two weeks for.
That involves a little bit of tailoring the software
to your specific process.
Some especially larger groups
will have like this is exactly what we're looking for.
Like this is how we want to represent ourselves
in every conversation.
Checkmark, checkmark, checkmark.
Configure the software.
Then it's just a couple of meetings
with the different stakeholders.
There's a couple of meetings with the management layer.
One, two, to get folks bought in.
It's critically important.
And two, just knowing where the buttons are
and what to click.
And then second is the meeting with the team.
So we'll do these on site for big,
maybe more challenging customers
or Zoom works for most of our customers.
One, two checkpoints is usually good.
And then one final one at the end of the other two week period.
So two weeks, depending on the dealership group size,
it'll vary if we want to chunk it up
and do a couple of locations at once.
Well folks, you have a master class right there
and an anchoring the way Jake asked me,
what's painful and what's not.
I love that.
That was well played, man.
I listen, I didn't expect anything less from you.
You know, founder of a sales or that was good.
I like that.
Master class for all our listeners.
Dude, it's super, super cool.
Before we wrap up, is there anything I didn't ask you
that I should have?
This is the part where I go into your brain
and I search for any compartments
that I didn't open quite fully.
You know, there's two final things I'll say.
The first thing that I'll say is that this is,
like this is happening, right?
No one was recording their phone calls a few decades ago.
Now everyone's recording their phone calls.
Soon everyone's gonna be recording
every in-person interaction.
And the question is, how quickly did you get on board?
Did you do it the right way to invest in it
and become someone who is getting the early advantages
of this tool and leapfrogging competitors?
Or are you being dragged by this
because you were a bit late to the game
and you're struggling to sort of keep up?
So it's sort of, it's happening.
So it's important to be aware of
if now's the right time for you
or if, you know, a few months from now,
that's I guess that's up to everyone's individual situation.
But it's coming.
Recording your in-person conversations coming
should be really happy about it
because it's great for you as an owner,
as a sales manager and as a sales rep.
It's good for everyone involved.
The second thing that I'll say is exciting.
Once this data all starts getting recorded,
the types of things that you can do
is again, it's the Google Analytics, but for in-person.
The types of things you can do
and learn about your business
when you have these conversations recorded,
you can start understanding
how our customers preference is changing quarter over quarter
because you're able to aggregate this information.
If you have multiple dealerships,
you can start understanding in a more nuanced way,
like why exactly is this location starting to flag?
We swapped out leadership.
Well, what's going wrong
as you're diagnosing performance there?
Is it that sales performance is low?
Or actually no, maybe competition
seems to have heightened in this area.
You're able to learn way more about your business
since you've been collecting this data
for months and months and months.
Looking at it in aggregate is incredibly valuable
and getting more and more powerful
as tech continues to evolve.
So exciting time for the automotive space.
I gotta tip my hat off to you.
You didn't use the word AI once.
So kudos on that because I think you focus
on the solution and which is what people care about
without going kind of all over the place.
So that was very, very strong.
Jake Cronin, zero AI.
Jake, thanks so much for coming on, it's been awesome.
Thank you, I appreciate the time.
All right, hope you enjoyed that episode.
Please give the podcast a rating,
consider subscribing to the show
and check the show notes for links
to what we talked about.
Thanks for tuning in, I'll see you guys next time.
About this episode
Jake Cronin, CEO of Ciro, shares insights on transforming dealership sales through conversation recording technology. He discusses how capturing sales interactions can enhance performance, improve compliance, and foster honesty in sales practices. With anecdotes from his experience, Cronin highlights the significant impact of data-driven decision-making in dealerships, comparing it to Google Analytics for physical showrooms. The conversation also touches on the importance of training and self-improvement for sales teams, emphasizing that recording conversations can lead to substantial increases in sales performance.
Original notes
Today I’m joined by Jake Cronin, CEO and Founder of Siro. The untapped profit potential hiding in F&I, winning strategies to secure consent to record customers, using data to diagnose dealership challenges—and more.
This episode is brought to you by:
1. BizzyCar – CDG’s Recall Tracker powered by BizzyCar monitors 70M+ vehicles with open recalls, packed with insights: timelines, fix status, campaign numbers—everything you need to bring lost customers back. Transform your recall management today @ https://cdgrecalls.com/
2. Lotlinx - Get the best possible market advantage on every vehicle transaction. Optimize operations and boost profits using artificial intelligence (AI) and machine learning. Learn more @ https://lotlinx.com
3. Siro - Siro helps dealers unlock the full value of every sales conversation. By combining AI with in-person sales tech, Siro captures, analyzes, and activates showroom interactions so managers and reps can make smarter decisions, faster. Learn more at https://www.siro.ai/
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Topics:
00:22 How will Series B funding help?
01:29 What inspired Jake's sales journey?
04:14 Cero: Google Analytics for showrooms?
06:23 Implementing Cero in dealerships how?
13:35 Overcoming sales team skepticism?
18:39 Fixing fixed ops problems?
19:52 Data insights boost sales how?
21:26 Quantifying Cero's ROI?
35:18 Future of in-person recording?
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