EP 9:15 The Ultimate Combo for Dealership BDC Success: Outsourcing and AI

Millionaire Car Salesman Podcast

In this enlightening episode of the Millionaire Car Salesman podcast, Host Sean V. Bradley sits down with Ross Tinkham, Vice President and General Manager of Automotive at Podium, to dissect the transformative power of Artificial Intelligence (AI) in dealerships across the country! They delve into how AI can revolutionize the traditional Internet Sales and Business Development Center (BDC) models to drastically improve lead engagement and conversion rates.

Sean and Ross take a deep dive into the functionality of Podium’s AI BDC tool, detailing its advantages and practical applications. They discuss the specific challenges dealerships face, such as low lead response rates and the inefficiencies of traditional human-only follow-ups. Ross highlights how Podium’s AI can engage leads instantaneously and maintain a high level of conversation quality, thus freeing human resources to focus on higher-value activities! They also explore how AI serves as a backup during unforeseen disruptions, such as the CDK ransomware incident, making a compelling case for its inclusion in any dealership's tech stack! Whether you're a single dealership or a large auto group, the insights shared in this episode are invaluable for staying ahead in today's competitive market!

Key Takeaways

• Enhancing Efficiency: AI can dramatically cut down on the time and effort required by human resources to engage leads, thereby increasing overall efficiency.

• Strategic Utilization: Implementing AI at specific times, like after-hours or during understaffed periods, ensures continual lead engagement.

• Faster Response Times: Using AI for instant response boosts lead conversion rates, aligning with NADA's finding that faster responses correlate with higher closing ratios.

• Continuous Learning: AI learns over time, improving its interaction quality and adapting to customer preferences.

• Backup Solution: AI provides a fail-safe during CRM outages or other technical issues, as demonstrated during the CDK ransomware incident.

About Ross Tinkham

Ross Tinkham is a visionary leader in the automotive industry, dedicated to transforming how dealerships connect with customers through the strategic use of video communication. With extensive experience in sales, marketing, and customer engagement, Ross advocates for making video a standard practice in key stages of the sales process, including follow-ups, service updates, vehicle tours, and after-sale communications. He believes that personalized video messages foster trust and loyalty, while video service updates keep customers informed and engaged. Ross also champions using video for detailed vehicle tours, offering potential buyers an immersive experience that enhances emotional connections with the vehicle before they visit the dealership. His commitment to integrating video at every touchpoint has positioned him as a leading expert in creating more meaningful and effective customer interactions that drive satisfaction and sales success in the automotive industry.

Resources:

Podium: Discover how Podium's innovative AI technology can unlock unparalleled efficiency and drive your dealership’s sales to new heights. Visit www.podium.com/mcs to learn more!

Dealer Synergy & Bradley On Demand: The automotive industry’s #1 training, tracking, testing, and certification platform and consulting & accountability firm.

The Millionaire Car Salesman Facebook Group: Join the #1 Mastermind Group in the Automotive Industry! With over 28,000 members, gain access to successful automotive mentors & managers, the best industry practices, & collaborate with automotive professionals from around the WORLD! Join The Millionaire Car Salesman Facebook Group today!

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The Millionaire Car Salesman Podcast is Proudly Sponsored By:

Podium: Elevating Dealership Excellence with Intelligent Customer Engagement Solutions. Unlock unparalleled efficiency and drive sales with Podium's innovative AI technology, featured proudly on the Millionaire Car Salesman Podcast.

Dealer Synergy: The #1 Automotive Sales Training, Consulting, and Accountability Firm in the industry! With over two decades of experience in building Internet Departments and BDCs, we have developed the most effective automotive Internet Sales, BDC, and CRM solutions. Our expertise in creating phone scripts, rebuttals, CRM action plans, strategies, and templates ensures that your dealership's tools and personnel reach their full potential.

Bradley On Demand: The automotive sales industry’s top Interactive Training, Tracking, Testing, and Certification Platform. Featuring LIVE Classes and over 9,000 training modules, our platform equips your dealership with everything needed to sell more cars, more often, and more profitably!

Mastering AI in Automotive: Transform Your Dealership's Efficiency with Conversational AI Key Takeaways

• Enhanced Lead Engagement: Leveraging AI can dramatically improve lead response times, leading to higher conversion rates.

• Strategic Use of AI: Strategic deployment of AI, both when human resources are present and absent, ensures seamless 24/7 lead engagement.

• AI and Human Collaboration: A balance between AI and human effort maximizes productivity and ensures efficient follow-up without compromising on quality.

In the rapidly evolving automotive industry, leveraging technology is no longer a luxury but a necessity. This article delves into an insightful conversation between Sean V. Bradley and Ross Tinkham, where they explore the transformative potential of artificial intelligence (AI) in automotive dealerships. Our discussion centers on the practical applications, strategic deployment, and immense benefits of integrating AI into everyday dealership operations.

Boosting Lead Engagement with AI

One of the primary challenges dealerships face is engaging potential customers effectively and promptly. Sean Bradley rightly highlights a significant pain point: the difficulty in reaching prospects through traditional methods. According to Bradley, “…the single biggest problem with Internet BDC engagement… is the vast amount of effort required just to get someone to answer the phone or call you back.”

Ross Tinkham elaborates on how conversational AI can revolutionize this aspect. He explains, “Conversational AI… is built on newer technology pioneered by companies like OpenAI Chat, GPT Four, allowing AI to engage with a human… with the same quality of interaction that a human would provide.” This means dealerships can now ensure every lead is engaged almost instantaneously, improving the chances of conversion.

Furthermore, Tinkham shares compelling statistics: "44% improved conversion rate from lead to set if you're engaging within five minutes as opposed to 2 hours." This underscores AI's critical role in ensuring that dealerships not only engage prospects faster but do so efficiently, leading to significantly higher conversion rates.

Strategic Deployment of AI for Optimal Results

The strategic deployment of AI can dramatically enhance dealership operations, especially when human resources are scarce or during off-hours. Bradley provides a poignant example: "A lot of dealers that had CDK and had podium AI, it saved them because it was almost like a backup generator."

By leveraging AI, dealerships can maintain 24/7 engagement with potential buyers. Tinkham suggests, “You could have AI running in tandem with your staff… which will free your human resources for tier two activities that AI can't do.” This strategic deployment ensures that no lead is left unengaged, irrespective of the time of day, and human resources remain available for high-level tasks that require a personal touch.

Moreover, AI can be particularly beneficial for smaller dealerships or those with limited human resources. By using AI, these dealerships can handle lead volumes effectively without overburdening their staff, as Bradley illustrates: "If you've got a small dealership… it might not be fiscally responsible or operationally realistic to hire two or three BDC reps… but what they might be able to do is implement AI."

Harmonizing AI and Human Effort

A significant theme in the conversation is the harmonious blend of AI and human effort. The consensus is that AI is not here to replace human jobs but to enhance them. Tinkham emphasizes, “…don't view AI as a threat to anybody's job… It's about repositioning your people to drive more value for the business and hopefully enjoy what they're doing.”

This balance can be illustrated through a real-world example Tinkham shares: "A 14-location dealer group… run a centralized BDC… adopted AI early on to assist with lead engagement." By leveraging AI for initial engagements, their BDC team could focus on higher-value tasks, ultimately operating more efficiently without increasing headcount. The AI achieved a "35% set rate from lead to test drive, matching up with what their best BDC agents were doing."

By focusing human resources on tasks that require personal interaction and strategic thinking, and utilizing AI for routine follow-ups and initial engagements, dealerships can ensure optimal productivity and higher job satisfaction among their staff.

Rethinking Traditional Follow-Up Strategies

The strategic application of AI also offers a profound rethinking of traditional follow-up strategies. Bradley proposes an interesting model for AI integration: using AI for the crucial first 31 days of follow-up, with potential for human resource deployment in the initial engagement where purchase likelihood is highest.

Bradley explains, “For the first 31 days, it's every single day I'm going to follow up with somebody… and then for the next 60 days, it’s every two to three days.” This hybrid model, where AI supports consistent initial follow-up and humans take over more strategic, personalized interactions, maximizes the chances of converting leads throughout the extended buying cycle.

Tinkham supports this view by indicating that AI can manage routine communication seamlessly, allowing humans to step in for strategic interactions without the potential lead feeling overwhelmed or ignored. This dual approach ensures no lead falls through the cracks, and follow-up remains effective and persistent without being intrusive.

Seamless Collaboration: AI as a Dealership Enabler

In the final analysis, the collaborative potential of AI and human resources within dealerships opens new avenues for operational efficiency and customer engagement. Tinkham encapsulates the essence with a hopeful outlook: "This is where everything is going… get on board to a degree you're comfortable and start to figure out what works for you."

Dealerships embracing AI not only enhance their engagement strategies but can also improve their staff's overall efficiency and satisfaction. Whether it's quicker response times, better handling of lead overflow, or ensuring consistent follow-up, the integration of AI offers a competitive advantage that's hard to ignore.

This exploration makes one thing clear: AI in automotive is not just a trend—it’s a vital technology that, when strategically implemented, can transform dealership operations, driving significant improvements in engagement, conversion rates, and overall customer satisfaction.