Dealership data wiz: Beating the algorithm to sell cars

Welcome to another edition of the Car Dealership Guy Podcast reading summary.

Today’s guest is Jeremy Nowling, sales, digital retailing, and implementation Director for the Rohrman Auto Group. In this episode, Jeremy discusses staying with Rohrman for over 25 years, beating the algorithm to sell more cars, how to "sell to zero,” adapting to catastrophe, and where A.I. is adding value, plus much more.

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1. Why Jeremy is an enigma.

Jeremy has been with Rohrman Auto Group since the 1990s. In an industry known for high turnover rates, Jeremy has had to reinvent himself several times, especially in his technology-driven roles. He got his start in the wash bay at a competing Toyota store in the area. One of his former general sales managers left the store and connected with Jeremy about an opportunity at Rohrman. For the next 25 years, he climbed the ladder working in sales. At 21, he became the exclusive Honda salesman to one of the largest pharmaceutical companies in the U.S. At around 30 years old, he went into management. He bounced around a few stores as a GSM and was then able to attend the NADA Academy and further his education. In 2019, Jeremy dug deeper into the technology side of things and honed in on product development and implementation. 

2. Then, COVID hit.

In July and August of 2020, Rohrman’s Honda location near Lafayette, Indiana sold out of new cars by leveraging all of the technology at their disposal to sell and deliver cars so customers didn’t have to come in-store. From there, the group grew even more. After Ryan Rohrman took over the group as CEO, he formed a director team and invited Jeremy to be one of the group’s technology leaders. “I feel that I am further advanced than most individuals in the industry when it comes to technology and how we use it on a day-to-day basis and how we drive performance and enhance the user experience and the consumer experience,” says Jeremy.

3. What technology is Rohrman targeting today?

Jeremy says the group is very focused on customer data platforms (CDPs), marketing extensions, ID resolution, data enrichment, and how to continue driving sales in a digital environment. It’s all about embracing data to drive return on investment. Jeremy explains, “I would say that one way of looking at data or CDP is controlling and mastering your data. Having a clean state of profile on your consumers, whether they be service or your sold customers, or just everybody in your DMS and CRM in general. And being able to target and market to that consumer exactly where they are in the journey. And being able to no longer have wasted ad spend, but have the right ad spend for every consumer out there.”

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4. More integrated tools. 

Given the recent CDK Global DMS outages, Rohrman is making some internal changes even though they don’t use CDK. They’re relying on their CDP to house and store all of the customer data they need should a CRM or DMS fail. Rohrman is taking things one step further by backing up the data to a storage cloud. Despite the discourse that dealers are overly reliant on integrated tech, Jeremy says that overall, unifying tools make operations much smoother for both dealership personnel and customers.

5. AI-based tools.

Jeremy explains that AI helps dealerships meet customer needs throughout their car buying journey without constant salesperson interaction. Imagine a website with a chatbot that answers questions, explores features with the customer, and qualifies them as leads before a salesperson gets involved. Dealerships using AI can provide upfront answers to most customer questions, including car details, financing options, and videos, all before a visit to the showroom.  He clarifies that while video walkarounds are manual, most of this process is automated in partnership with Impel. The primary tools that Jeremy relies on are conversational AI that can answer customer questions even outside of business hours, virtual photo booths that enhance vehicle photos and SRP (search results page) descriptions, and automated information packets that provide car details to customers so salespeople are freed up for more interaction.

6.  New opportunities with AI

AI tools can help the dealership trim costs, and when it comes to BDC (business development center) employees, Jeremy says several of his stores are down to a BD coordinator only. This person is responsible for daily tasks and managing handoffs. At other stores, Jeremy doesn’t have BDC agents at all. Instead, salespeople work alongside AI on a “digital sales floor.” This structure allows BDC agents to become digital salespeople. He adds that larger stores will probably always have at least one or two agents to oversee handoffs and assist with service. But overall, Jeremy’s message to dealers regarding AI is the “embrace change.” Jeremy adds, “I would actually encourage BDC agents to step away from that role and embrace the AI, increase your income, and jump onto the sales floor and provide that best experience to consumers for years to come.”

7. Changes to the service department.

Jeremy discusses a service director who was initially hesitant about using AI for customer communication but has since become a big fan. This AI identified opportunities within the dealership management system (DMS) to target customers who haven't visited in a while or to remove those who no longer own the car. The AI also uses text messaging and empathetic communication to win back customers and encourage them to schedule service appointments online allowing agents to focus on in-person customers by automating communication tasks.

8. Today’s market.

Jeremy explains that new car sales leads are slumping even though dealerships are overflowing with inventory. Could it be interest rates? Waiting for specific features or colors? Jeremy suspects increased competition is a culprit. In the past, a dealership might have been the only game in town for a new car. Today, online marketplaces are packed with competitors, all vying for customer attention. In 2020-2021, a typical 75-mile radius might have only offered around 2,000 new cars. Today, that same area could have 25,000-40,000 new cars spread across hundreds of dealerships. To win in this crowded digital space, it's all about understanding the algorithms these online platforms use to recommend cars. He offers some winning strategies. 1) Be quick. Upload pictures of new arrivals as soon as they hit the lot to get prime placement. 2) Consider offering 360-degree views – like a virtual spin around the car. 3) Don't underestimate the power of positive online customer reviews.

9. Plans for the future.

Moving forward, Jeremy is focused on continuing to grow Rohrman Automotive Group and giving back to the industry that shaped him. The Rohrman family’s culture of innovation and collaboration extends to Jeremy and even helped shape his son Dominic's path in the industry. After working alongside Jeremy during COVID, Dominic discovered a passion for the car business and thrived at Northwood University, the only college in the U.S. with bachelor's and master’s programs specifically tailored for careers in automotive retailing. This connection came full circle when Jeremy himself began volunteering as an instructor, sharing his knowledge and experience with students while also gaining fresh perspectives.

10. Getting in touch with Jeremy.

Jeremy welcomes anyone interested in connecting with him to find him on LinkedIn to discuss industry issues or explore opportunities with the Rohrman Automotive Group. “ If you're somewhere where you feel that you're not thriving and you feel like there's so much more that you like to share and grow with, that's what we welcome. We welcome those individuals to join our organization,” he says. The message is clear: The Rohrman Group is a place where passionate individuals can thrive alongside like-minded leaders.

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