A high school t-shirt venture came to manage over 500 million in dealership ad dollars. Alright, this is crazy. Today I'm speaking with David Ren, the co-founder and CEO of Stream Companies, a fully integrated advertising and marketing agency that serves car dealerships. We discuss the size and scale behind dealership marketing budgets, how AI will impact the car buying, whether or not those gimmicky dealership mailers actually work, my personal biggest marketing regret, and much more.
Don't forget to click subscribe so you never miss an episode. What's up everyone, this is car dealership guy, you're listening to the car dealership guy podcast, which is my effort to give you access to the most unbiased and transparent insights into the car market. But before we dive into the show, this episode is brought to you by CDK Global. CDK Global has been empowering nearly 15,000 dealers with the tools and technology they need to build deeper relationships with customers. Their team is keenly aware of the state of dealership technology, and while many vendors promise seamless experiences between your CRM, DMS, digital retail and fixed ops, most of these bolt-on solutions tend to break workflows and cause more harm than good.
That is why CDK has launched a new dealership experience platform. This new integrated software consists of everything you need to operate a dealership officially, while delivering an unparalleled experience to your customers. Basically, everything working together, not separate, one system to run your dealership as opposed to 10. CDK developed it with an outside-in approach listening to dealers every step of the way. To learn more about CDK's dealership experience platform by visiting CDKGlobal.com slash DXP or clicking the link in the show notes below.
This episode is also brought to you by Stream Companies. I'd like to thank Stream for coming on us to guess and also supporting this podcast. In 1998, we had made a decision to, of course, advertise, so we put an ad in the yellow pages. And one day, we were sitting in the office and got a phone call from a gentleman named Dale Petrovich for radio and metropolitan communications, local businesses, and he was a Motorola two-way radio dealer. And he needed to write a marketing plan to be able to sell this new product Motorola was offering called Tolario. Dale was a bootstrapped through the business, didn't go to college, and he had no idea. So he picked up the yellow pages, gave us a ring. We actually went up to his office that day, met with Dale and one of his general managers, and he hired us on the spot. His first client ever put us on a retainer, you know, and that was in 1998. So we started out doing work with Dale. We actually put, funny enough, put his business on TV, local cable TV, and I met a TV rep who introduced me to my first car dealer ship in 1998.
What was it like? I mean, what are you even selling to car dealers in 1998? Were you selling websites yet? No, so the funny enough, like, dealers were just getting email addresses in 1998. Some dealers didn't even have websites. I mean, it was just starting. So we were selling, we were designing newspaper ads, designing and mailing direct mailers, and producing TV commercials, and buying local spots on cable. Wow. And how big were you at this point? It was just, it was Jason and I.
So this was just in 1998 and got our first dealership, and this was a small, small dealer in Pennsylvania, but he was still, he was spending $25,000, $30,000 a month. So we were like, wow, there's a lot more money in dealership ad spend than the two-way rating videos or doctors or anything like that. So that was our first taste of understanding the auto business and how, it was really antiquated at that point. They weren't even tracking the phone calls they were getting from the newspaper ads or the direct mailers. All right.
So let's fast forward. What does Stream do today? What are all the different services you offer? We are a fully integrated agency from strategy, media buying, digital, creative, soup to nuts. That's really our sweet spot is working with dealers, dealer groups and the publics, helping them execute and develop their go-to-market strategy. Yeah.
So I'd have to imagine you clearly see tons of dealerships, their marketing budgets, their spends. Given all the inventory craziness that we've seen in the last couple of years, what have you seen shift in the way dealers are deploying marketing dollars?
Yeah. I think that just to kind of rewind a little bit, dealers started to really lean heavily into digital pre-COVID. But as COVID hit, really you saw traditional media budgets decline even more and more and more dollars get shifted into performance media, paid search, paid social, the endemic, things like that. So historically pre-COVID was probably 60 to 70% digital and the other spends traditional. But really that's pivoted where in many cases we don't have any dealers running any type of traditional advertising. Wow. Has any of that reverted in the last year or so?
Yeah, definitely. And I think we'll see kind of more happen even more in 2024. Our perspective is making sure that our clients have a good mix of both awareness, performance and retention. Again, I think retention is often overlooked in this business. We spent so much dollars driving demand, but we forget to retain the traffic that we're driving and the customers we already have. I think that awareness has kind of been a forgotten part of the advertising mix. Our most successful dealers never stopped their awareness advertising even during COVID. Give us some examples. What is that awareness advertising that you're seeing?
Yeah. Depending on the market, right? It could be we've got big dealers in big, big metros that sell hundreds if not thousands of cars a month. So, go run broadcast TV, radio, cable TV. But really those are the bigger dealers with the bigger budgets. When you look at when a dealer approaches you and I'm trying to put myself in their shoes, they're coming to you like, hey, I have X amount of dollars to deploy. How do you figure out, again, the attention of the consumer is shifting so quickly from different platforms? And where are we consuming content? Where is that attention? How are you balancing that for dealers nowadays, especially when two years ago, if you got a car in the lot, it sold. You didn't even need to advertise. And I can imagine that hurt your dealer spend. But how are you then balancing today where consumer attention is shifting so rapidly and making sure that you're channeling those dealers dollars in the right direction?
Yeah, that's a great question. So first off, if we've got a new potential client that's reached out to us, it's really understanding the market that they're in, the brand that they're selling, what is the competitive landscape look like? What's their sales penetration? What's their share by zip code for their brand that they sell? And then also, what's the competitive mix for makes and models that they compete against? So we really want to understand what the market looks like. And then we look at what's the consumer look like in that market as well? What's the demographics? What's the income? Those types of things. Before we even put a budget together, we want to have all that information. And then also, what is the inventory? Do they have the inventory? What is our go to market in terms of simple, going back to your college days of marketing of the five P's?
We've got to have the product. We've got to make sure the dealers are pricing the product to market, to be competitive. And then we look at things like, what's the promotion? And then the placement. Where are we going to be able to, if we're going to go in awareness, whether it's broadcast TV or cable TV or radio, do we have the funds to get the right reach and frequency to stand out from the competition and then noise in general? So that goes into all those recommendations. And then we look at what the digital competitive landscape looks like. What's the competition on Google look like? Are we getting enough visibility within search? What's converting from a keyword perspective? Really get down into the details to put the dollars to work for the dealership so that we can drive enough opportunities to do business, to reach the sales goals. And then the sales goals really help us build out an appropriate budget, for sure.
Yeah. So you take clearly a very analytical approach, which I think is smart. Can you give us an overview of your scale, number of dealers, whatever numbers you can kind of go so we can contextualize to scale your business?
We're at about almost 700 employees. So our scale is pretty immense. And we've built the company to move at the speed of retail. I think that's super important for our clients, right? That includes having people that work on the weekends because if a client needs something changed on the website, a new slide, or has an issue with a vehicle price, the wrong way or just needs help, we have people that are available on the weekend. So we've built the business to really be able to support our dealer clients as well as our OEM partners.
We've got 20 plus OEM partnerships. So it's important that we're really able to, our internal core values or one hour response, 24 hour resolution to really meet the needs of our clients. Before we started the podcast, you were talking to me a little bit about some of your clients, you worked with some national clients. How did you scale that from Eastern PA all the way to National to some of the largest dealer groups in the world, frankly? How did you do that?
First and foremost, when that dealer, this name was built, Bill Latch, he still running that store sold. Which store is this? It was called Courtesy Chrysler Jeep and Thorndale PA was our first auto client. That was your first store, got it. What Bill gave us, which some of our other clients, I'll talk a little bit about that in a second, was the opportunity to learn the business. I didn't know, in 1998, didn't know anything about the car business. But Jason and myself, again, being curious, life-long learners took this opportunity to really understand the business.
首先,当那个经销商建立这家店时,他的名字叫Bill Latch,他仍然在经营这家店。这家店是哪家?它叫做Courtesy Chrysler Jeep,位于宾夕法尼亚州的Thorndale,是我们的第一个汽车客户。那是你们的第一家店,明白了。Bill给了我们一些东西,也是我们其他一些客户所给予我们的,我稍后会谈一下,那就是学习业务的机会。1998年,我对汽车行业一无所知。但是Jason和我自己,再次充满好奇,终身学习者,抓住这个机会来真正了解这个行业。
I'm talking how to read a financial statement, what are all the profit centers in the dealership, what are all the opportunities coming in, whether it's sales call, service call, parts call, how do we help our dealers holistically run their business in a smarter way? I think by really entrenching ourselves in the business allowed us to start to make a name for ourselves. Again, through the network of dealers, talk to dealers, we really started to build out a nice auto business. I would say our biggest opportunity, what really set us to the next stage of the business was a woman who since passed, who is a mentor and great friend of mine, Julie Tozo, family owned Lynn's auto group in North Jersey.
At the time, they had four or five dealerships and we're spending $5 million, $6 million a year on advertising, super competitive market, Julie interviewed 18 agencies and she just loved Jason and I's fresh perspective on looking at the auto business in a different way. We made it to the finals between us and another agency, ended up coming out on top and that was in 2002. That was really the next stage of our business of really learning what high volume stores look like in competitive markets.
We were spending $100,000 a month in the Star Ledger at that time getting a thousand phone calls a month off of our newspaper ad. That was really, I guess, really, we got our masters in automotive working with the Tozo family and just really understanding the business and how to deal with a multi-generation family dealership. It was a big life lesson and there were 20 plus year clients of ours. That was a huge, not only a huge business opportunity but it really taught us a lot about the business.
Seems to me like you focused on one by one brick by brick compounding here based on what you're describing one store at a time. Again, you've been around for quite a while and I want to get into how you reinvented yourself in a second but I think that's, correct me for long, that seems to have been your strategy here, like really compounding over many years. It really is and I think it was like provide a great service, be partners to our clients, taking calls any time of the day and really again, our work spoke for itself and we took that opportunity and like you said, we laid the next couple bricks.
We truly introduced us to a gentleman named Ed Carden who was on the national dealer council for Nissan. He was a general manager at that time with Cherry Hill Nissan and now owns 10 plus stores with his business partners. Again, still a client of ours so really that brick by brick and then got introduced through Big Dealer Group and PA long term, still a client of ours. Again, a mentor, Fred Bean's got introduced to Fred through his internal agency at that point and then Fred decided to make the change and dissolve his internal agency and roll it into stream. Again, we have amazing partners and clients that have taught us and mentored us and really helped us grow the business for a private brick.
Tell me more about like present day dealership numbers.
One question, what are dealers right now paying on average to acquire customers?
告诉我更多关于目前车行数量的情况吧。
一个问题,目前经销商平均支付多少来获取客户?
Most of our clients are very focused on what their PRU is. So how much they're spending per unit on advertising?
我们的大多数客户非常关注他们的PRU是多少。他们在广告上每单位花费了多少?
We've got clients that are spending anywhere from $250 a unit to some dealers that are super aggressive with some of the OEM programs have more co-ops so they could be spending $600, a unit depending on their co-op programs and how much money they're earning in co-op.
Yeah, so just to simplify that, if I'm spending $100,000 a month and I sell 200 cars, I spent $500 per unit. That's the math you're going by, right? Like per sold unit.
That's correct. Yep. Got it. So you're saying the lowest you're seeing is about $250?
没错。是的。明白了。所以你的意思是最低价大约是250美元?
Yeah, and that was a little dip below 200 in some cases during COVID and I would say pre-COVID was probably closer to $350 to $400 a unit on the low end.
When you see players in the industry like Carvana or other upstarts that in some cases, in a new market may spend thousands per unit and I don't know what's the latest numbers but I know that it used to be at certain point, over $5,000 a unit.
What's the thought that goes through your mind as a practitioner or someone that does this? How do you reconcile that?
作为一位从事此行业的从业者或者相关人士,你内心会有什么想法?你如何使其达到一致?
Yeah, I think that it was, Carvana had a different model, right? Than the franchise dealer. They were going for how do they get market share? How do they build a brand and brand recognition? So they were spending, like you said, over $5,000 a unit.
So it really gets hard to compete in terms of if they're in a low, if they're when they open their Philly location and they're pouring $50 million or however much into a market, you don't want to go to fight with Carvana on TV, right?
So I think it's, again, that's about understanding the media landscape and making sure that we're putting our dealers, dollars that were. But for the most part, Carvana was never something that our clients were focused on and like, oh, how do I compete against them?
It was always more, how do I compete for my fair share of the brand that I'm selling and how do I conquest new vehicles? If I'm a Toyota dealer, how do I make sure I'm beating the Honda and Nissan dealer in my market?
Yeah. No, I think you made a good point. I was thinking about how do you compete with that when you're a dealer that's spending a tenth or can spend a tenth of that, which sort of leads me to my next question, which is, do you think that from a marketing perspective, like top of funnel, do you think that there's an embedded advantage to being a local dealer nowadays or do you think that the advantage lies with the national chains, the national groups, regardless of the fact that they're maybe not as ingrained locally into the communities, but having that national brand is more powerful.
Yeah, I mean, just I think from our perspective, in our lens, that dealers are rooted in the local community, even the dealerships that are publicly owned that don't have a unified name are still very much ingrained in their communities and their household names in their markets.
They give back to the local schools, the local hospitals, the local charities, which I think plays an advantage because they're impacting the local economy and they're creating local jobs.
So, from my perspective, the dealers are so important to the local economy and also the national economy. The industry employs a tremendous amount of people, not only in the dealerships, but all the ancillary products and services and media that gets rooted into the economic ecosystem impacts our economy.
I always say how do your ships go is how the economy goes.
我总是说,你的船怎么样,经济就会怎么样。
Yeah, that's a good way to look at it.
是的,这是一种很好的看法。
How much budget are you managing today? I'm trying to compare this to financial industry.
你今天在管理多少预算?我想把它与金融行业进行比较。
Do you have a number? Can you give us a perspective of what is that budget number that you're today managing at Stream?
你有一个数字吗?你能给我们一个关于你在Stream管理的预算数字的概念吗?
Yeah, it's over a half billion dollars that we're managing for the tier three and so far tier one clients. So, it's come a long way since Jason and mine, my mom's living here.
Yeah, I can imagine. Is there a specific channel that you're directing most of that budget?
是的,我可以想象。你是否有一个最主要投入预算的具体渠道?
Can you say, hey, this is a disproportionately our fastest growing channel?
你能说,嘿,这是我们增长最快的渠道,相比之下过于不成比例吗?
There is and it's the channel that none of us really want to direct it to, but no, I think it's the channel that drives the most amount of traffic and they've done a great job of working into the OEM ecosystem, the dealer ecosystem.
So what's the channel? One second. What's the channel?
那么频道是什么?等一下。频道是什么?
I was going to say, yeah, if you look at most of the budgets, I mean, paid search is the highest, highest amount of on pretty much every budget. You put us on a cliffhanger on that one.
Yeah. And I do think that that's starting to shift, right?
是的。而且我确实认为这种情况开始发生变化了,对吧?
Because that ecosystem has gotten so competitive, so outlandish with how budgets are managed and new products that are being put out there. But if I just pulled up 100 random budgets, I would say 98 of them paid search would be the highest channel spent. Wow.
And is there a distinction from franchise dealers, independent dealer when it comes to that? Or would you say it's pretty similar?
在这方面,特许经销商和独立经销商有区别吗?或者你会说它们非常相似吗?
We don't have a ton of independent dealers, but again, I would say maybe the independents might be heavier on the pandemics, right? They might be playing with all the pandemics where. What's in dynamics? You know, the cars.com, auto trader, car gurus, par facts. Yeah.
What are your thoughts on third-party listing sites? There's been a lot of chatter in the dealer community for various reasons, whether it be pricing increases from certain vendors, dealers listing fake prices on certain platforms. Like all this together, are you a believer in the third-party listing side stuff?
Yeah. I mean, if you look at it, again, looking at the data, right? Because we want to put our clients in the best position to win each and every month. Again, it goes market by market, but the third-party sites do perform. So we just.
Especially when COVID happened, right? And new car supply went down and dealers were living off of used cars and used car volume. It was even more important to make sure that you had a presence across at least two, if not three of the third-party sites.
But I think now, as the used car market has changed dramatically, that we've got clients that are saying, hey, do I need to be on all of them? Which ones are performing best? Help me look at my spend and, again, make sure that it's balanced from new car to use car and I'm not disproportionate, right? We've seen a lot of clients that are newer to stream now come on board and their budgets are upside down. They're still very much heavily focused on used while their new car supply is growing. So we're really trying to help them make sure that they've got the right balance.
I think it's a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that's not a good idea to be in a business that maybe Hayden"?
我认为在一个不值得做的生意里是个好主意,也许是海登吗?
Go ahead, Civío for hun carrying the stock account now what was really cool to see in that case was, you know, we did spend more and sales went up. So the PRU actually stayed in balance for that dealership, but they were not afraid to go after it, right? Like, well, one, they were in a market, you know, Texas was, you know, very much a friendly state when it came to how things were handled during COVID for the car dealer. So by, you know, having a great team because he's got a great team and, you know, very effective advertising. It sets sets up for, you know, not just success then, but for future success.
Well, I think one of my biggest regrets is I think it was around 2013 or 14 when Facebook marketing was still like very, you know, nascent within the car business and at least in our region, we were probably the only independent that were doing it in non-traditional ways, sort of, you know, advertising or showing experiences, not necessarily like showing an ad, but actually just showing a video of a customer or something. And I think we were spending in hindsight, it was like $100 or so, customer acquisition costs per unit. And now, you know, I look back and I'm like, Oh my goodness, how did we not juice that thing to the max and bring every single customer in the area to buy a car? Because it's so funny how you have this opportunity under your nose. And I didn't know back then we didn't know, but now I look back and I'm like, Oh my God, those were the glory days, at least for some form of social media marketing.
You have a first mover advantage, right? And like I said, goes back to, you know, why I see some of those budgets switching back to traditional because it's less competitive. Same thing there, right? Like social was not many dealers were on it. They weren't using it effectively and they weren't being memorable. So I still think that, you know, in some cases there's an opportunity with social, but I think you both know it's again, because the advertising has become such a big part of it. A whole ecosystem has changed from, you know, 2013 to where we are now.
Do you have we were talking about listings. I do have like a favorite listing side for whatever reason. I mean, is there one that you specifically think performs the best for your dealers? I mean, again, it goes market, you know, market by market, you know, in some of our, you know, dealers that, you know, go back to when cars.com had the relationships with the newspapers, some of those cars.com markets perform really well for our dealers. And then there's markets where, you know, park euros is, you know, just performs the lowest cost per lead, all those types of metrics that we help our dealers manage. So you're saying it really depends on, really depends on the dealer in the region.
It really does too, right? And then it also depends on how the dealers pricing their inventory to market. Are they competitive or are they overpriced? I mean, just if you're overpriced, tell me about it. Yeah, it's like, Hey, we need more leads. Yeah, lower the prices. You're going to get more leads. Oh, right. That's, that's, that's, that's the battle. You know, I would say retail automotive advertising and retail automotive was not for the faint of heart, right? Because you need to be able to have those conversations with their client. It's never one thing. Yeah, there's so many ways to gain the system.
So we, we post a lot on Instagram. And the other day I noticed that when you post on Instagram, you can add it to your story. And the Instagram team changed the button where it's supposed to be added to the story. And they made it into their new app, right? The threads app. And so now every time you go to, you know, just muscle memory, like post something to your story, you actually enter their new app. So the first, the only thing that goes to my mind, like thinking, you know, about like, no, no different than operating a dealership is someone is in Instagram right now trying to game the system so hard and get their metrics up, right? They're like, Oh, yeah, we just need more leads. And they're just just made one little switch. And like they just completely just obliterated the entire, you know, all their numbers out of the park so far.
Yeah, every dealership needs more leads and more ups. You mentioned traditional media where you've seen, you know, that falling. But do you do you still believe in like radio ads TV? Like, are those two expensive for dealers to justify? Like, am I going to get us $300 cost per acquisition on something like that? How do you think about that? Yeah, I get it goes back to understanding the dealership, the market, the positioning that they're in. I do believe, you know, in certain dealers that have the market has the demand for the vehicle that they sell that traditional plays, you know, an important part of the awareness, right? I think that we've gotten as an industry, we've got so hooked on performance media and last click attribution that we want to give credit to to the digital metrics. But we forget, you know, we're all consumers, right? And we consume content, you know, through the through through screens, right? Brother, it's the TV screen, the laptop, the iPhone. So we still need to connect, you know, with our potential customers and provide them with a message and a story of the why come by from, you know, the local dealership. And I think that does still have an impact, you know, and it's changed as well, right? It's not just, you know, traditional, you know, TV, I can buy ads on Hulu, I can buy ads on Amazon, you know, I can buy ads on, you know, all connected TV. So the landscape of media consumption has changed. And I can no spend more money on quote unquote TV, but it doesn't have to be on broadcaster cable. It can be, you know, targeted at a zip code level, you know, using my first party data, my audience is to really hone in on, you know, the right customer with the right message.
So one thing that hasn't changed, but I've personally never done is like those like credit card campaigns or the keys, and we've, you know, we've all received them in the mail, or you got like that fake credit card or the key or, you know, come spindle, we are going to win the lottery. What's the deal with those? Like, are you do those really, really work? Are you still singular? Use them? What's your thought?
Yeah, I don't, not off the top of my head if we don't, I mean, we've done them in the past, for sure. I don't know that we've done any how well do they work? I mean, for the right markets, they do work, right? They drive, they drive traffic and listen, I'm, you know, connected in the industry with, you know, different people that run staffed events that use those mailers to drive, you know, thousand ups, you know, over a couple of days period. So in some cases, they work with new car inventory levels the last couple of years. We haven't been using kind of any of that type of, you know, you know, mail to drive, drive traffic. It's really been about vehicle, you know, the last couple of years have been about vehicle acquisition, right? How do we buy from, from our customers, you know, whether it's, you know, a lease return or it's a third car they had in the driveway and didn't need a third car, no during COVID, how do we help our clients, our vehicles?
I had another gentleman in the podcast a while back and he was telling me about, no, I was asking about the, like, you know, all these like tried and true marketing tactics that seems so like dumb on the outside, but actually convert. And I think we were talking about all the call to actions on a website and, and how like the sad part is that it actually converts when there's like, you know, five or 10 call to actions.
Part, partnership guy, we've got a product on the, so, you know, we've got stream, we've got another business full throttle, which runs 100% independently of stream. We've got a product called Nitro leads. So if you went to some of our OEM, you know, tier one websites, some of the tier, it's, it's like an e coupon, right? And we do test drive offers, we do incentive offers. And when I tell you, it's the best converting, you know, thing on, I'm talking on tier one OEM sites, dealer websites, and many people are like, Oh, this is just the distraction. But we've AB tested it. And it, it works. And, you know, is a big driver of, you know, not just, you know, incremental leads, but incremental sales for, for the dealers and the OEM.
So Yeah, man, human nature, human nature, it doesn't change much. So it's, it doesn't, it doesn't. Look at it. You go, if you look at most of the retailers right now, right? Like the consumers have been trained to give their information on those, those popups, like go to, go to a, you know, Hugo boss or go to a, you know, gap or whatever, and you go in there, they're, you know, do you want the 10% off? You know, give us your email. And I always do those. You're actually right. But I'll tell you one thing. I'm, I'm very meticulous. Like I right away on subscribe afterwards. I take my coupon.
No, but there's, there's a new thing though now, right? Now they want you to subscribe email. And then they also want you to confirm my text. Yeah. So I think in some ways, as marketers, we train the consumer, right? To if we give the information, we get value. So I do think that's why, you know, think, like you said, those silly things, they, they do work because the consumers conditioned to do it. Yeah. And like you said, you know, it's, it's a trade, right? You get value in exchange for information. So that's why it would, that's why it works.
I want to shift gears for a second. One topic that's obviously very hot is just AI and everything going on with opportunities, with AI and deal share marketing. How, first of all, are you doing anything on this front? Are you seeing any dealers implementing AI in any badass ways?
Yeah. We've got a couple clients that are, that are using AI, you know, for things like, you know, identifying, you know, service opportunities and, you know, again, going back to how do we help find, you know, the right, the right audiences. So we're definitely on the full throttle side. We have, you know, AI built into our platform to help identify the best in market audiences for, for dealers and other agencies and OEMs to market to those customers. So, you know, we're scoring them in real time buying for propensity based on, you know, demonstrated behavior. So that's where we're seeing, you know, AI from a marketing perspective is really around, you know, identifying, you know, who's the right person we should be talking to. That's, that's the value that I see in AI on the automotive side.
You know, I think where, where AI becomes a slippery slope is like, when we have, when we're interacting with the customer through, through AI, like that to me, is a slippery slope. Have you seen, or are you seeing any really meaningful implementation of AI on the consumer front? Like, I want to know, as a consumer myself, is there something that's going to completely change the car buying experience for me? Or is this all about efficiencies on the back and for dealers to reduce costs and stuff like that?
From my perspective right now, right now, car dealership guy, it's, it's on helping the dealerships and workers, right?
从我的角度来看,汽车经销商先生,现在的重点是帮助汽车经销商和工作人员,对吗?
And the work that we do, whether it's in the dealership or, you know, at stream or full throttle, it's how, how do we, you know, get, get more productivity out of our, our workers and allow them to do more things that are meaningful with the customer experience, right? I think that's where it can provide, you know, efficiencies with task management and around, you know, giving the workers more time to interact with their customers and be more customer-faced.
Yeah, and that's what I suspected, but I think it's going to be interesting to see.
是的,这正是我所怀疑的,但我觉得看到的时候会很有趣。
So yeah, we were talking about, you know, recently there was a post that went viral about a dealership that, you know, was interacting in a, you know, a chat GPT agent interacting with a customer. It didn't quite go the right way.
The agent, you know, sort of like quote, quote, quote, sold a car for $1. That went viral. And you know, it went really viral, by the way. I think like, you know, tens of millions of impressions online.
Yeah, I'm not, you know, I just heard, heard about that, but I don't really know anything about it. But I think that's the, that's the unknown, right? We don't know what can happen with, with AI, right? And I know from my experiences, as a consumer, my, with big brands, every time AI is used, it's like, can I please talk to a human, right? I'm not interested in having a conversation.
Yeah, I think with exactly, I think the implementation, it needs to be 100%. It's no different than like self-driving cars in that sense, where 90% is not good enough, you know what I mean? Like, you need 100%. Like, I need to, I need to get my exact answer for, to really be able to replace a human.
I've had other guests on the podcast say that, you know, like salespeople are, you know, in for a rough decade because of AI. And, and I think it's still, it's going to take getting to that point where that experience is so much better, or it's at parity, where I truly, you know, know, I can get anything I can from AI agent, which I think will really bring a new dawn of automotive sales in general, because it's going to make things a lot, you know, more efficient and very different.
Yeah, and I think it still comes back to this is old school, right? Like, we used to preach this, we still preach it. It's like, read the lead, right? You need to read what questions the consumer is asking, and we, to provide a great experience, we need to answer those questions. I think that's, you know, still impacts our business, right? Where, you know, consumer asks the question, and we just say, okay, can you come down on Saturday at 12, 12 o'clock, right? Versus, you know, building rapport, building trust with the consumer, then, you know, asking for the appointment after you done those, those things.
So I still think that, you know, there's tremendous amount of opportunity just as an industry to provide, you know, an amazing experience to the consumers. And I think we know that that's really what they want at the end of the day.
This has been very, very insightful. I want to thank you for coming on. I also want, you know, if anyone wants to learn more about your company's stream, I see stream, streamcompanies.com can confirm that on your end. And is there, and if anyone wants to get in touch with you, is there a preferred way?
Yeah, David, it's streamcompanies.com. David, thank you so much for coming on. This has been great. Thanks, Carlos. 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.