Shane Wilson, President of Connected Dealer Services, discusses the evolution of vehicle data usage by dealerships to enhance customer loyalty and service revenue. He explains how their Car X platform allows dealers to access real-time vehicle data through a discreetly installed device, improving sales efficiency and customer engagement. The conversation highlights the importance of data in fostering long-term relationships between dealers and customers, as well as the potential for AI integration. Wilson shares insights on service appointment metrics and the growing trend of connected vehicles, emphasizing the need for dealers to adapt to maintain competitive advantage.
Today special guest host Sam D'Arc is joined by Shane Wilson, President at Connected Dealer Services.
We dive into the tug-of-war between dealers and automakers for customer ownership after the sale, how real-time vehicle data is fueling explosive fixed-ops growth, the playbook dealers are using to win loyalty long after delivery – and much more.
This episode is brought to you by:
1. Connected Dealer Services - Staying connected after the sale isn’t optional anymore, it’s your competitive edge. Connected Dealer Services, creators of CarRx, help you transform every car on your lot into an ongoing customer relationship. Their connected-car technology powers real-time tracking, stolen-vehicle recovery, and service alerts that keep customers engaged long after they drive off the lot. From protecting your inventory to driving retention and fixed-ops growth, CarRx turns vehicle data into real, measurable profit. Discover how @ http://CarRx.com/Retention
2. S&P/IHS Global - With over 1,000 segments, across Service, Trade-In and In-Market Shoppers across, Polk Auto Direct gives dealers the best return out of every dollar spent. The self-serve platform includes multi-dealer management capabilities and targeting up to a 50-mile radius.
Save now with special discounts for new sign-ups through November 30! Visit @ http://PolkAutoDirect.com today.
3. Amazon Autos - With Amazon Autos, your dealership can reach more buyers, drive more sales, and deliver a modern, more delightful car-buying experience. Learn more @ https://sell.amazon.com/programs/autos
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Topics:
1:30 What is Connected Dealer Services?
4:30 What is Connected Dealer Services' unique data advantage?
8:00 How do you measure service appointment success?
12:30 What is Connected Dealer Services' origin story?
16:00 How does F&I improve in profitability?
21:00 Dealer group vs. OEM strategy differences?
24:30 How to enhance fixed operations?
28:00 What is the installation and support process?
32:00 What is the future vision for Connected Dealer Services?
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"So what does connected car mean? In your world. Yeah, it can it can go a lot of ways, right? So"
A connected car is a vehicle that can connect to the internet and other devices. This allows it to share information and provide features like tracking its location or checking if it has enough fuel.
A connected car refers to a vehicle equipped with internet access and a variety of sensors, allowing it to communicate with other devices and systems. This connectivity enables features like real-time data sharing, remote diagnostics, and enhanced user experiences.
"we really start from lot management And we go all the way to loyalty. So I'll kind of walk you walk you through that"
Lot management is how car dealerships keep track of all the cars they have for sale. It helps them know where each car is and if it's ready to be sold.
Lot management refers to the processes and tools used by dealerships to manage their inventory of vehicles on the lot. This includes tracking vehicle locations, monitoring their conditions, and optimizing sales strategies.
"making sure they know where the vehicles are for you know, stolen vehicle recovery and protection"
Stolen vehicle recovery is how people find cars that have been stolen. It usually involves using technology like GPS to track the car's location.
Stolen vehicle recovery refers to the methods and technologies used to locate and recover vehicles that have been stolen. This often involves GPS tracking systems and other security measures to help law enforcement find the vehicle.
"So this is a GPS system. It'll track the vehicle but it does more it connects into the system and gathers more information programs like low jack and maybe recover"
A GPS system helps find out where a vehicle is located using signals from satellites. It's commonly used in cars to help with navigation and tracking if the car is stolen.
A GPS system (Global Positioning System) uses satellites to determine the precise location of a vehicle. It allows for tracking and navigation, making it useful for recovery systems like LoJack.
"...we are able to pull the real-time insights from the vehicle through the OBD port. So we're wired behind the vehicle and we're not that OBD plug-in."
The OBD port is a special plug in cars that lets you connect devices to check how the car is running. It helps mechanics and systems gather important information about the vehicle's health.
The OBD (On-Board Diagnostics) port is a standardized interface in vehicles that allows external devices to communicate with the car's computer systems. It provides access to data such as engine performance and diagnostics.
"You don't know what the Vin is so you don't know what technically you don't know what car you're in. So thinking about tracking vehicles, you may not necessarily know relying on human air all of that"
A VIN is like a car's fingerprint; it's a special number that helps identify each vehicle. It tells you important details about the car, like who made it and when.
VIN stands for Vehicle Identification Number, a unique code used to identify individual motor vehicles. It contains information about the car's make, model, year, and place of manufacture.
"we can get some of the check engine light data some of the vehicle health data and it's just completely pivoted our company"
Vehicle health data is information about how well your car is working. It can tell you if there are any problems or if everything is running smoothly.
Vehicle health data refers to the information collected from a vehicle's onboard diagnostics system that indicates the overall condition and performance of the vehicle. This data can include engine performance, fluid levels, and other critical metrics.
"Look, we can get some of the check engine light data some of the vehicle health data and it's just completely pivoted our company"
The check engine light is a warning light on your car's dashboard. If it comes on, it means something might be wrong with the engine, and you should get it checked out.
The check engine light is a warning indicator on a vehicle's dashboard that signals a potential issue with the engine or emissions system. It can indicate a range of problems, from minor issues to serious engine faults.
"So we know exactly the maintenance schedule for each vehicle. But we've learned that dealers also rather at times have their own schedule..."
A maintenance schedule is a list of when your car needs to be serviced, like getting oil changes or checking the brakes. It's important to follow this list to keep your car running well.
A maintenance schedule outlines the recommended service intervals for a vehicle, including oil changes, tire rotations, and other routine checks. Following this schedule helps ensure the vehicle remains in good working condition and can prevent costly repairs down the line.
"Recalls are another one, you know, if you see the success like busy cars doing and some of the others recall information is a huge..."
A recall is when a car company finds a problem with one of their cars and asks owners to bring it in for a free fix. This is important to keep everyone safe while driving.
Recalls occur when a manufacturer identifies a safety issue or defect in a vehicle that requires repair or replacement. Manufacturers are obligated to notify owners and fix the problem at no cost to the consumer, which is crucial for vehicle safety.
"...we're pulling it from NITSA actually so it's a national highway..."
NHTSA stands for the National Highway Traffic Safety Administration, which is a U.S. government agency that makes sure cars are safe to drive. They handle recalls and safety information for vehicles.
The National Highway Traffic Safety Administration (NHTSA) is a U.S. government agency responsible for ensuring the safety of motor vehicles and their equipment. It oversees vehicle recalls, conducts safety tests, and provides information to consumers about vehicle safety.
"...tires are also same similar to that where you know, you know you don't always think about going to the dealer for that..."
Tires are the round rubber parts on your car that touch the road. They need to be checked and sometimes changed to keep your car safe to drive.
Tires are the rubber components that make contact with the road, providing traction and support for the vehicle. They need regular maintenance, including rotation and replacement, based on wear and driving conditions.
"...based off the odometer and driving behavior when tires should be rotated and when tires should be replaced..."
An odometer is a part of your car that tells you how far you've driven. It helps you know when it's time to get your car serviced.
An odometer is a device in a vehicle that measures the distance traveled. It is used to determine when maintenance tasks, like oil changes or tire rotations, are due based on mileage.
"...but we have kind of the old-school Lincoln penny tests on the app..."
The Lincoln penny test is a simple way to check if your tires are safe. You put a penny in the tire tread, and if you can see all of Lincoln's head, it means you need new tires.
The Lincoln penny test is a method used to check the tread depth of tires. By inserting a penny into the tread, you can see if the tread is deep enough to provide adequate traction.
"...we have the one of it, you know, the lowest current draw in the industry with our with our hardware again..."
Current draw is how much electricity a device uses. In cars, it's important to keep this low so the battery doesn't run out when the car is parked.
Current draw refers to the amount of electrical current that a device uses when it is powered on. In automotive contexts, it's important to minimize current draw to prevent draining the vehicle's battery when the car is not in use.
"...I feel like we're in an arms race of ai right now in automotive..."
AI in automotive means using smart computer technology in cars to make them safer and more efficient. It helps with things like self-driving features and keeping track of car maintenance.
AI in automotive refers to the use of artificial intelligence technologies to improve vehicle performance, enhance safety features, and provide better customer experiences. This includes applications like autonomous driving, predictive maintenance, and personalized services.
What is Connected Dealer Services?
What is Connected Dealer Services' unique data advantage?
How do you measure service appointment success?
What is Connected Dealer Services' origin story?
How does F&I improve in profitability?
Dealer group vs. OEM strategy differences?
How to enhance fixed operations?
What is the installation and support process?
What is the future vision for Connected Dealer Services?
Select text to request an explanation
Dealers early access to our private dealer chat groups is now open join top dealers at cdgcircles.com
That's cdgcircles.com or hit the link in the show notes. I'll see you inside
Today, I'm joined by Shane Wilson president of connected dealer services
Automakers used to control everything that happened after the sale from service alerts to driver data
But now dealers are using that same information to stay connected with customers build loyalty and boost service revenue through the one thing
Customers never leave behind their phones a big. Thank you to our sponsors for making this episode possible poke auto direct
Amazon autos and of course connected dealer services and now let's get into the show
Shane Wilson welcome to the CDG podcast tell us a little bit about yourself to start out
Hey, Sam great to meet you and really happy to be on so Shane Wilson president of connected dealer services
And we're the team behind the car X platform
car X is a connected car
Enterprise tool for dealerships. We're really happy to be here. So what does connected car mean?
In your world. Yeah, it can it can go a lot of ways, right? So
We have a device in fact that I have one here
I can kind of hold up but there's a widget that's installed on every vehicle the dealership lot and we really start from lot management
And we go all the way to loyalty. So I'll kind of walk you walk you through that
But basically they install our product on every vehicle on the dealership lot and we first start out with helping them with sales
Efficiencies making sure they know where the vehicles are for you know, stolen vehicle recovery and protection
We let the sales person individual know
Is there fuel in the vehicle is the vehicle going to start for for user experience?
And you don't want to bring a consumer out to a vehicle with a dead battery things like that
But then we take it into FNI
Where the the FNI agent will sell our product in FNI as a stolen vehicle recovery program
But we offer so many other services for the consumer whether that be our data collection
Which is really important. So we we pull a lot of data from the vehicle. We help the consumer with vehicle health
We help them be able to understand their maintenance intervals things like that
But we also share that with the dealer. So we're one of the first FNI products
That really offers that that continuous kind of connection to the consumer and really kind of the ability to give the dealer a lifetime
Relationship with that consumer or their client with just an FNI product
So helping me to kind of link it back to my own world. So at Ziggler
Yeah, low jack and I know there's yep these out there that do recover or similar system
So this is a GPS system
It'll track the vehicle but it does more it connects into the system and gathers more information programs like low jack and maybe recover
I don't know. They'll at least gather the battery, but not much else. How do you get that information?
How do you get those different data points out of the vehicle?
That is what exactly makes us the most unique and the biggest differentiator between us and our competitor Sam is is we are
able to pull the real-time insights from the vehicle through the OBD port
So we're wired behind the vehicle and we're not that OBD plug-in
So we're installed underneath the dash just like you know anybody else
But we're tied to those those data points in the vehicle to get real odometer
Fuel reading all of the check engine lights vehicle health status things like that
Which it's great. In fact, we're processing at this point almost 2 billion events a month
All of that data and in what we're doing with it is we're we're sharing that with the dealer on a platform to allow them to
Use it to make better business decisions allow them to communicate directly to their consumer base
Run service campaigns
Even to the point now AI has been so popular these days and even some of the conversations you've had recently
You know, we are a data engine for AI, right?
So just being able to pull that data and ingest it in the AI and some of the programs they're doing is really unique
That's fascinating. I mean, there's not another product that offers is in-depth data and experience
Do you have information from your dealer clients about what the
Retention rates look like when they apply the product. I mean so from our standpoint in my world
It helps us track vehicles our salespeople who could walk that customer out directly to the vehicle
We know when the vehicle stolen we know when it's off lot
So just pure lot management is the benefit to us of a product like this
You're extending that into finance finances reselling it and then services maintaining a connection with that customer
What are some of the data points that show?
Retention over time of that customer back to the dealership our actual nor star metrics on our side is service appointments
It's it was really the easiest way for us to measure ourselves in our success
So, you know our goal is if we can book an additional service appointment even just one a service appointment per consumer and FNI
That's that's huge for the dealer and so
When we when we look at it that way and then all the rest of our program kind of ties along with that
That's how we're measuring ourselves
But some of our dealers are booking in over 1600 to almost 2000 appointments a month through our program
So what happens is there's a there's a consumer app, right?
And we're tied into you know the the scheduling tools and all of that through DMS and X time etc
And so, you know the consumer can book right through our app
I don't know if you've ever played around some of the dealer websites
But booking an appointment through an appointment through the dealership can be tough sometimes, right?
So this is two or three clicks you have a direct connection
You know it's scheduled we follow up with you know alerts and notifications and scheduling in your calendar and things like that so
Yeah, so that's that's the that's the big data point for us is the appointments and and we're seeing today
Almost 20% growth month over month with our dealer as they continue to get more volume
But as we continue to learn better insights, you know
Like we've learned Tuesday and Wednesday are better days to campaign a consumer versus the weekend and things like that
So, you know, we're continuing to look at what's successful. What's not?
Really had a strategically touch that consumer at the right time when it's when they care about it, you know
So these real-time insights are really really important. So what what caused you to develop this?
Where did this come from? What's the need before we go into some of the specific? Yeah, it's a fun story
So, you know, we were similar back in 2016 you know 2015 2016 when really started this program
The original problem we tried to solve
Which some of our competitors still have quite frankly is we don't know without tying into the data of the vehicle
You don't know what the Vin is so you don't know what technically you don't know what car you're in
So thinking about tracking vehicles, you may not necessarily know relying on human air all of that
So we wanted to solve that to be able to understand exactly
Which vehicle we are plugged into and that was we solved it and that was it but then once that happened we started realizing
All of this other data point that we could find, you know all of this other data that we saw like oh, wow
We can get fuel we can show everybody the fuel level or you know
Look, we can get some of the check engine light data some of the vehicle health data and it's just completely
Pivoted our company, you know to where now, you know, you I mentioned earlier on the intro
We're an enterprise tool is it we're not just a GPS company anymore, you know, we are really going into that CRM world
with the data we're becoming a channel call it a channel of of
The data in the insights from the vehicle directly to the consumer cell phone
So we're not replacing direct mail and some of the other other advertising they're doing
But we can be a legit channel for them and that's really resonating with our group and our dealer base
So so this is a product born of a specific need and you're filling that need and
Finance offices are delivering to their customer. What are you seeing as an average lift in F&I?
When F&I offers it like what what contribution to the PVR?
Yeah, we're adding depending on the service plans. We have multiple service plans anywhere from a one year to a seven-year plan
But on average we're seeing about a six hundred dollar lift on a three-year plan all the way up to about a twelve hundred dollar lift
on PVR with some of our longer term plans and
What's really working for the dealer and the entire program is now, you know, the dealers really want to
They want the data they want the connection from the consumer as long as possible, right?
So they're they're really pushing to try to get that longer life
Lifetime connection. So they're going for longer plans. The consumer can kind of really understand, you know
Team tracking and some of the other things that resonate on top of our, you know, a standard program
Now I have that loyalty and now I have
You know a better connection with my dealer. I can communicate back and forth. What's the most basic plan from a time?
And then what's the longest plan? Yeah, so we go from one a one-year standard price
So so the consumer benefit really is the same. It's really just a lot of time
And then some of the data collection. So yeah, so so a lot of our dealers will
You know lean in and say I want everybody
No matter what to get a one-year plan and they're making, you know, it's very profitable
I mean some of our dealer groups and the larger groups are making thirty five forty million dollars in FNI with just our program
As a group, right?
And so they do a one-year, but then they have the upsell, right?
So then they typically upsell to three to a five to a seven our corporate average as a company's about 40 service months as
We look at it. So we're the really a blend of three and five is what we're the sweet spot is from our from our dealers
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So what are you seeing as like it our dealers having how are they packaging this when they get it financed with the banks?
The banks are probably excited about it because they can track the vehicle
They better maintain the vehicle better connected to the lenders
Have you kind of stepped into the lender world a little bit to understand how well they're adopting or accepting the product?
Yeah, they they're accepting it from a from a
Finance perspective like meaning, you know, they're allowing it on the loan. They're advancing it. You know, all of that's done
We haven't gone down the path. You know, we help the dealer with fraud which has been huge
You know, obviously fraud today in a dealer, you know, it's huge. So we're we're helping them recover vehicles
We're helping them with fraud but after that, it's really the more of a consumer product
So we're not we're not assisting them on like, you know, like a buy here pay here world or a recovery aspect
But certainly on the fraud fraud path. We are yeah
What are you seeing out there in the OEM world with connected vehicles?
Because you know when we talk about this one of the things that comes to my mind is
Information about our about customers and being able to serve the customer and retain the customer to a dealer group
Not to a manufacturer is key in today's world, right? And yes, absolutely
It seems to me in a lot of ways
it's a race for dealers to figure out how to connect with customers and
And and retain them long term to a group
To the to the name brand not necessarily to to to the OEM and it seems like this sort of does that talk to us a little bit
About the benefit of retaining to a dealership group as opposed to a
Manufacturer yes, so so the group is is our our largest focus
I mean we support anyone from a one roof top to
Hundreds right the platform is built to support even into you know
Independence or some of those smaller accounts that may not necessarily have their own tech team or their own BDC center things like that
They can use our platform for all of that and get this very similar service some of these big guys, too
But when you look at the group level and you think about the inventory they say they have they have multiple franchises, right?
They have multiple brands and multiple logos
50% of their inventory is used and that's kind of growing at least right now, right? So
You need coverage so so we're that umbrella to go over the entire group. We're agnostic to brand
We're agnostic to you new and used and we're so we're allowed to we're allowing them to have that
Overarching view of all of their inventory all of their consumers in one spot
Which is completely different than what the OEMs can do and they can quite finally can't provide to a dealer today
Yeah, I think about you know in our world
We've got a director of fixed ops and he works with all of our service locations
Does this give a even a larger group?
Like what are you seeing with with fixed ops directors finance directors and how they're engaging with this in multiple rooftops?
We've got 41 stores four states 2700 employees
I would think it'd give a fixed ops director some visibility into not only inventory and retention
But also into maybe trends in service and problems with particular brands
It's yeah, you're absolutely right Sam
So the the fixed op directors in the team and service can go to the platform
They can they can see certain trends on on you know, what vehicles have check engine lights most frequently, right?
What what vehicles are are in ready for service?
We actually created a notification to them directly when we on board the dealer to where if something's going on at the
Vehicle level whether it be a check engine light what severity the check engine may be that gets sent to the fixed ops director
Or is someone that's in charge of that group or responsible for that that function
So they can communicate to their consumer
Immediately right and have that start building that trust factor
Start allowing them to get it so consumer sees the you know, they alert on their phone immediately the dealer is calling them
It's just it's a it's a win-win for everybody
Interesting, how many dealerships are you working with at this point with this product?
We're in several hundred. We're you know, we are you know the majority we have a bunch of the top 150 dealer groups in the country
We're continuing to grow
Substantially year over year
We have some major groups in the country doing very well with us where we're on every vehicle on the dealership lot
Covering every dealer in their in their arsenal and just taking you know
Huge advantage of what we can deliver on the from the data and again
They're using it not only on our platform, but they're ingesting it to for their their you know their other programs and complimenting
What they're doing for their other DMS the other CRM systems. Yeah, give me give me an example of how it complements each other
What what what are some ways that the product comp will think think about but I always talk about the one data point
But the odometer, you know, we get the odometer. So just think about how important that is for
So many of your products at a dealership or dealer group, you know from from thinking about just
Buyback programs and when I may want to promote to that consumer to get the vehicle back
Do are they driving commercially? Is it an Uber? Is it a lift?
We can help recognize some of the prepaid maintenance programs and in insurance programs
You may have that potentially would expire at, you know, 30,000 thousand miles today
We're gonna tell you exactly when 36,000 miles happens, right?
So it's not just that average based off, you know, average driving behaviors and things like that
So we're built to be able to send that
Through API's or any format that the dealer group may want so they can ingest it any way they want
Interesting are you seeing anything interesting with AI where once the dealer collects all this information about their client base and is
Working to retain them
Maybe some best practices or interesting ways that dealers could be thinking about how to engage with the customers to increase retention through through all this
Yeah, I think you know what we've seen have the most success is when there's someone assigned to the to the program and
It's a little bit of trial and error, you know, just like any advertising, right? Like I mentioned what day is is the best for
For booking an appointment. We found Tuesday and Wednesday is is that so
So that I think the dealer being able to really lean forward and use our platform and get the tools of data out of it
To create that sweet spot of exactly when the consumer really wants to be talked to or a painter
We're doing that on our side too, right? So a lot of predictive modeling
What is the consumer? You know, what does the consumer really want? We don't want to be annoying
You know, we don't want to be we want to hit them at that point where it's very important for them
To you know to book that appointment to talk to my dealer
And then finally, you know, AI needs data, right? So I I mentioned earlier, but I mean we are the data engine
From the vehicle, you know, so, you know, if it when you think about AI in
In general any if they're doing it for their DMS their CRM's it needs more data to process
So think about vehicle health scoring
Thinking of think about, you know, what where the driver behavior is layer that onto some of their other other data points
It could be very compelling and I think it just takes that whole
Experience and in success rate to through the room through the moon
It's such an interesting area like it's something that's never been explored like never in the history of automotive has a
Dealer group my size or a single point had access to a tool that could retain the customer back by communicating with them
So directly and that to me is is fascinating. We also give the dealer
The branding within the app, so they're they're launching car X
Car X as their trusted advisor car X is what the consumer really trusts and believes
But look at the dealer branding is all through the app
So your logo of your group your logo of your your specific rooftop if you want it there is all present when booking the appointment everything
So you still you know in some of these groups we're starting to become the mobile app strategy for them
So you could put the Ziggler logo on it and when the customer goes in
The app is it is an iPhone app or a yeah, Android or just a web link. What is it?
It's an iOS or an Android app
So they're native to the phone and yeah when they launch it all of the the branding is there
So so Ziggler to your point would be there
You know when they're booking an appointment, they know they're booking it with that group and so
It's very specific to your group
Is there like an API or an integration that pulls things like service recall and
Manufactured required history into the app so it predicts or recommends those types of items as well
You got it. You nailed it. So yeah, so we're pulling some of the the OEM schedule a data
So we know exactly the maintenance schedule for each vehicle
But we've learned that dealers also rather at times have their own schedule, you know, maybe they have their own maintenance program
We we're paired quite a lot with some of the larger groups where we we
Mere exactly their maintenance program. And so it may be every 5,000 miles every 7,500
So we can marry it to the whatever the dealer dealer group wants or we can spot pull schedule a
Recalls are another one, you know, if you see the success like busy cars doing and some of the others recall information is a huge
Service retention point and we do that. We pull all of the the recall data
Allow the consumer to see the recall the dealer is able to again campaign do campaigning
Promotional campaigns around recalls things like that's another big. So are you pulling that like from busy car or an API?
Integration outside of a tool like that. Do you have to have both? No, we're pulling it from NITSA actually so it's a national highway
Is is a big collector of that data because obviously it's it's you know by law
Consumers have to get registered. So there is a database you can pull and we can expose that on the mobile app
So the consumer logs in they see whatever recalls are required same as the dealer when they log into the portal
You know, you mentioned that the the manufactured required service in our world
There's a difference between what we would recommend sometimes what exactly recommend yeah, and you said you can pull either one
Do you have an opinion having service so many clients which is best? I think you know
I feel the dealers
Schedule is best and you know, they have it tied to their programs
Like I mentioned usually it's it's tied exactly to their current maintenance programs and how they have it scheduled
And I think that's I personally have seen the most success when when we're embraced kind of all in one
Where there's not a we just come a bigger part of the dealer's network, right where we're supporting exactly
There's no discrepancy of what they're saying on the dealer's wall versus us
Yeah, why do you think the OEM sometimes go longer on their intervals and we want less?
Like, yeah, there's the truth in that. I know you're not an expert in it
And so you know you probably got an opinion based on pulling the data like you do
I think it's I think it's you know some of the products the only the dealers are offering
You know from a maintenance perspective what they can offer versus what the dealer is actually recommending
I truly think the dealer knows best
In this world where they know
What their customers are looking for and you think about just regions right like here in Michigan where I'm at
Just the climate versus, you know, dry areas in
Phoenix and Scottsdale things like that, right?
So the dealer and then their region and what is required they they're always going to know best
They have the boots on the ground right at that location, right? So I think that's the way to go for transitioning kind of staying in that lane of
required services
OEM services dealer group. What's one of the most?
Overlooked opportunities in the service lane in this connected car area in your opinion, you know, I never would have thought about it
until we really started seeing some some success, but
Interesting enough
Batteries or what I would call wearables, right?
When you think of a as a consumer not necessarily a dealer group, but as a consumer when your battery goes
I don't immediately think about going to the dealer to get that fixed
I'm gonna go to an auto zone or whatever and tires are also same similar to that where you know, you know
You don't always think about going to the dealer for that
And so I you know on top of the major repairs that we're helping the dealer with I think I found that it's just there's
There's new opportunities in the service side of the world that the dealers haven't really taken advantage of because they never had
The ability to have that data. So now they know a battery failed
You know Johnny's car the battery failed today. I can hand I can take care of that for them or
Based off the odometer and driving behavior when tires should be rotated and when tires should be replaced
We have you know, I'm gonna age myself a little bit, but we have kind of the old-school Lincoln penny tests on the app
So you can you can measure your treadwear the dealership can or the consumer and then once we know the tread
We use the all the analytics behind our platform on an odometer and driving to be able to know and predict when the tires need to
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Before I go into throughput because I would like to ask you a little bit little bit about how a device like this improved shop
Through throughput or technician efficiency. First of all, what does the install look like? Where does it go?
Where does it sit? Does it need an external power source? Is there ever a threat of a drain on the battery having it there?
Yeah, great question. So so battery. No, in fact, we have the one of it, you know, the lowest current draw
In the industry with our with our hardware again
So, you know, it's designed to sit on a dealership lot, right?
So if you have it if you have any drain issues at all, you're gonna be very exposed really quick, right?
So so a very low current job. In fact, it's almost completely disconnected when it's sleeping
So if it's this part on a lot not moving, we're not drawing hardly anything either
But there's about a three-foot wire harness. We install behind behind the OBD. So everything's stealth. Obviously, we're still a stolen vehicle recovery product
We have to make sure we're secure and hidden
But it's wiring to the OBD
Port it's pulling the data. It's getting power. It's getting some of the data feed from there
And then it's installed, you know that the installs trained installers trained to kind of hide it
Randomly throughout the cars. So it doesn't plug directly into the the port you're you're coming into the wiring harness somehow
Exactly, we're coming. So we're permanently installed. So you think about
Emissions testing OE scan tools all of that all of that has to still work and plug in right so we're completely hidden
Installed from that and then being that we are disconnected electronically from the car when we're not in use
That's you know, there's no issues with other products being plugged in or working because one thing you get with some of the other
Products that are permanently plugged into that port is there's another
Receptor on top of the plug that others can plug into but sometimes if you take it to a competing dealer
They'll complain about hey, it's not a bullet out three part. Yeah, they'll pull it out
They'll say it's causing the vehicle to malfunction. So do you see less instances of issues?
With the product where OEMs or other shops are claiming that there's a problem as a result of the device
Is that pretty yeah? Yeah, that's why it's it's our warranty rate and quality is almost non-existent. We have a
warehouse in Irvine, California where we QA and test every single device before it ships
That's the one thing. We're a proud of ourselves of you know
I have a full engineering department full hardware department. Everything's done in-house. So I have full control
Of all of that quality. We make sure that they there's no issues with the scan tools no issues with any of the quality
And all that's all plug-in place. So they don't even half the time
They don't even know we're there
Is it like when they when they want that's the best case right because that it's hidden from thieves
They can't find it and then competitors aren't going to bring it up as an issue because they won't see it, right?
Yeah, which that's that's pretty that's pretty smart. So so coming back to f&i just a little bit
You've said f&i is a lot launch pad for lifetime value. Can you explain how dealers bridge that first transaction into that longer term engagement?
So I get it's offered at f&i as an additional product
If finance upsells it turns from lot safety and security to the dealer
It transitions into a device that the consumer can use
How does f&i actively set that up as hey?
This is going to help serve you mr. Customer even above and beyond some of the
OEM or manufacturer apps or programs that are installed in the vehicle at times
Yeah, what we've seen as far as the most success, you know, we have a dealer app as well, right?
So the sales people are using it and there so we we you know
We train them to you know when they're walking the client to the vehicle. They're already demoing it
They're using it as a tool for them. So that's it's a great lead in of hey
I'm using this mr. Customer
You need to use it to and go through that and then what the f&i is doing through the in the upsell
Our our best success is they're actually having them book their first appointment
In f&i while they're at the dealership. So they they instill that kind of muscle memory
They sit, you know, they understand that oh, I you know, I have this app
It's tied to you and I'm booking the appointment
And that's it the dealers that are really leaning forward to that and making that happen have the most success
Whether that be in the in f&i or you know post f&i whether this is the salespersons incentivize to do that or not
But that that's where we see a lot of success
How do you support the product in stores because I've noticed with a product like that
There is some training that needs to happen with the salespeople with sales managers like in order for this to work
Everybody's got to understand it so they can talk about in different steps and stages with the customer
Hey, we have this because it helps prevent theft. That's a problem. Maybe hey, this helps me know where the vehicle is
They show them the vehicle on the app
What type of training and support do you offer in support of the product?
So this is number two
Second biggest differentiator between us and some of our competitors out there. So
We have completely built our entire business to be able to support and scale
For the dealer, you know remove all of the friction
help with training so
We have a whole three sets of teams
We have a product deployment team, which will go out and they're the trainers
They'll go out and on board a dealership. We walk in like a SWAT team. We've been called
Where we have, you know, four or five folks at the dealership lot
We're preloading the lot training the technicians on how to install
We're training fni. We're training fixed ops sales. All of that happens within the first week
Of our launch a typical launch takes two to three days
From an average account larger accounts may take a full week depending on inventory and employee employee account
But we we do that and then after that a second team comes in
Which is the account management team and we usually
Will visit them again week two and week three of a launch
Make sure we get everybody trained up that may have missed
Make sure that they instill the muscle memory
Understand how to pitch the product the the with them as we call it, right? So yeah, all of that
Is done and then we have an account team assigned to that to that dealership dealer group
We you know, we provide full reporting kpi reporting on upsell revenue profitability
What's working? What's the not working business practices? We so we end up becoming a true partner
Uh, we're we're not a set it and forget it um type product
You know, we're not profitable if if you know the sell-through and the in the profitability is not happening at the dealership
So we're we're built to be able to support that
So that's it's interesting. I feel like we're in an arms race of ai
Right now in automotive and I also feel like we're sort of in an arms race of connected car
And a lot of success down the road in automotive is going to be about
Helping to deliver the best value to customers using the the information sitting inside that vehicle
To help the customer better service the vehicle help them maintain it help them track it help them keep it
From being prevented from being stolen. What what do you say is next for connected car?
What are some of the biggest untapped things currently and and what what are you guys working on next?
It's it's a fun place to be I'll say we're we're having a lot of fun. So um, you know, we continue
I think there's two paths from our side. We're you know, we're very involved in
What the data on the vehicle is going to look how it's going to look year over year
You know, what's our five-year plan our 10-year plan? What's what's going to happen with ev and
You know what day like we can pull there, you know, we obviously we still have service and wearability there for the dealers
But you know battery replacement and things there are becoming more and more important
Our vision is basically the entire
vehicle ownership and and tie that to the dealer, right? So, you know,
Owning the vehicle ownership for a consumer and and and tied it with the dealers is where our vision is and where we want to go
That's very cool. And again going back to the other issue in the world
The the OEM wants to retain back to the OEM the dealer group
We want back to the dealer group and it seems like this helps us achieve an accomplished the goal
We're trying to achieve an accomplish of of of that
So it'll be exciting to see and watch as you go down the road and you see the success you guys have
um
How you expand the capabilities of this product to continue to deliver more
So last question, Shane, what does success look like for a dealership?
Paint us the picture of the perfect dealership that is fully embracing this connected service and lifetime customer value today and into the future, Shane
You know
You actually just nailed it right there, Sam
So, you know, what is success for a dealer in my mind is, you know, if you have we have some stats
So like 74 of
Of consumers, they get their car service at their dealership are more likely to buy or come back and buy their next vehicle
and so
Success to me is owning that consumer for life
And if we can be that f and i product that allows the dealer to have that connection
That's a win for us and and we want to own that world
And I think having the dealer and the dealer groups having the ability to have that direct connection
In real time
For the dealer app on the phone
In my mind, that's the that's the that's the win for them
Yeah
Well, Shane Wilson absolutely fascinating connecting with you today talking about all things connected vehicle
And how you can turn a simple product that tracks a vehicle
Which many have
Into something that provides a wealth of information to clients and customers as a added value product in finance
To retain that customer longer term to the service department is is absolutely fun great conversation
Thanks for being here any any final comments or thoughts shane as we as we wrap today?
Uh, no, I you know, this has been great, uh, sam. I'm glad to be here and you know
Obviously the the people out in the world feel free to reach out to me directly or my team
For any questions. So thank you very much. And I know I know there'll be a lot of information
In the podcast notes as a link including I assume
A way to reach out to you and then get information more on pricing because that's the one thing we didn't cover that
I'm absolutely fascinated about so backstage. I'll ask that question because
For our own group. I'd love to learn. Yeah, absolutely about that piece. So shame. Thank you. Appreciate you being on the show
Thank you
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