All that mattered to us and all the matter to them is like, can you help me move vehicles? Again, it's not like you're going to walk into a dealership two years from now. There's going to be no one there. Like you still want to test drive something. You don't want to just like buy a car site unseen from like looking at videos on the internet and with the right context on the right training, an AI agent can answer the phone schedule appointments, basically do everything.
Hey, big thank you to our sponsors for making today's episode possible. Card dealership guy news, Uber and podium. And now let's get into the show. Eric Ray on the CDG podcast. Welcome.
Hey, how's it going? You all see good. Our conversation about media, social media in the past 10 minutes could have been a podcast on its own. I know. I know it's a great way to start. Good to have you on my friend. I hear you have some, uh, some automotive blood in your background. My dad had a bunch of gas stations and he sold used cars off the lots. And I think where our stories converge is I, I like, get out of here. Well, my, I never took, I never took over my dad's business because it was in Canada. I want to move to the United States. So I moved to the US and studied information systems computer science and, and ended up, but it ended up getting back to local business and use cars and now the, you know, a lot of OEM dealerships too.
Okay. So your dad was in the automotive business, right? Like you just mentioned, you got into tech. Right. So there's some, there's some similar threads there. What, what, what got you into tech? And by the way, now you're creating tech for dealerships. We'll get to that too. But what actually brought you this world? Always want to do something. It's software. Always wanted to start my own business. And at the time, I mean, this is like 2013 when I was living in Vienna, my dad would call me like every month. And my dad doesn't know technology at all. He's like, probably like your dad. He like barely knows how to use his iPhone, but he would call me like once a month and he'd be like, Hey, Eric, somebody just left me a one star review. On Yelp or Google. And what do I do? He's like, somebody called me an asshole on Yelp. I'm like, well, I can see why. But I'm like, you have thousands of customers that like you. So just go get them to leave your review and you'll be fine. And the reality was he had like 15 reviews on every review site, which first of all didn't make him look like a good business or didn't make him look like a legitimate business that'd been around for 20 years. But second of all, like the only people that were going online, leaving him reviews were people that had felt like they got ripped off or whatever. Like people that just, you know, even in the car business, like by the way, yes, it's it's the classic case, right? It's, you know, you see the only the bad, you know, the good, you know, by the way, I'll tell you, I'll tell you something we used to do. I used to encourage people not to leave me a five star review, but to write their about their experience because I knew that that Google at the time, like would rank at higher. So I said, Hey, like, you know, don't don't feel black to leave five star, like leave whatever you'd like. Just write about your experience, you know, truly, like if there's even one thing that was wrong, like chop a star. So what happened, people would leave like three four star reviews, but the actual review was great. And that got ranked higher. I don't know how the Alga works today, but it was a real issue. So anyways, go ahead.
Yeah. No, totally. It that you are you were right because the the algorithm takes into account all the content that's written, not just the star rating. And so you're that was really smart. So yeah, anyway, my dad, I thought my dad and his this type one tire shop he had. He had sold his other gas stations, one tire shop. He had was doing like three and a half million of gross revenue a year. So pretty good business, but like I thought if my dad's tire shop has this problem, I'm sure hundreds of thousands of other businesses have the same problem. And so I got together with my co-founder, Dennis, and we were buddies in college. And I'm like, Hey, we should this is like a week after coming back to the United States from Austria.
And I was like, Hey, we should start a company that helps businesses get reviews because the thing we realized is like, whether you're a dealership or a plumber or whatever, any like blue collar. Local business people just unless you're like a hip restaurant, people aren't going online and leaving reviews. And so unless they have a bad experience. And so we made this, we built this super simple long story short. We built this super simple product where you just put in the phone number of the customer at the end of the, like as you're checking them out.
And at the end of the transaction, you press send and it would send them this text message and then they would click this link and leave a review on Google Yelp or Card and Guru's or wherever. And we, we built this thing and we started going door to door and like people, it just started taking a look at the end of the day. And we started taking off because this was 2014, like 2014, we'd go into legit OEM dealerships and they wouldn't even necessarily know that their reviews were showing up right up the top of Google and people Google their name. And so, and that quickly, quickly changed.
在交易结束时,你按发送按钮,它会向他们发送一条短信,然后他们会点击这个链接并在Google Yelp或Card and Guru's等平台上留下评论。我们开发了这个功能,并开始挨家挨户推广,结果很快就火起来了。那是在2014年左右,我们去一些正规的汽车销售商店,店主甚至都不知道他们的评价会直接显示在Google顶端,当人们搜索他们的名字时就会看到这些评价。这种情况很快就改变了。
And so we built this product, we went door to door and basically for the first year for the all of 2014, we were just going to these business, initially just going to any business. And then we were just going in on like OEM dealers and other some other verticals, but we just would go in every day, drive, drive around Salt Lake City and all the other cities around there and just sell, sell, sell, sell, and then get home at night and build the product and do it again. Let's fast forward now 10 years, right? A lot has changed. I mean, even when I launched my prior company, there was digital retailing tools were, you know, much more nascent than they are today. It was a whole different world, right? The car business has been evolving much more rapidly than ever before, if you ask me. From your perspective, like what has changed the most if you had to compare, like when you started to today, right? Where are we today in the state of automotive technology, right? That you're privy to. What has changed? Where are we at today?
Yeah. So we start with reviews. We realize that like being a point solution in any business and especially automotive is not the key. So we spent the next nine years building out this huge communication platform with phones and messaging and all these different things. And today, the biggest thing is, I mean, this is what we're going to talk about probably for the rest of the episode because it's just blowing everybody's minds is like, AI's gotten to a point where it can do the jobs of regular humans. And that sounds so crazy to say because even two years ago, that wasn't the case. But like, that is, I mean, the thing is for every business, but especially for OEM dealers is like, at least what we hear from them right now, the two biggest things are conversion. Like you got to convert leads right now because there are fewer of them than there have been in the last couple of years and then training and staffing. And AI, if done well, solves both of those problems in a significant way.
And so that's just like crazy. You said you said three big things here, which I want to dig into each of them. The first thing you said is that you, you are seeing, and again, you're the founder, CEO of this company. So you clearly have a comprehensive view, but you're seeing that AI is actually replacing people. So let's just start there. What are you really seeing in the market today? Like, how is this happening from your perspective?
Yeah. So a great example of a cardiature group that works with us. First of all, we have 7,000 OEM dealers that work with us in the United States and Canada. And so we've got a third of the market uses podium in some form, some form or fashion. And so we get a lot of data. What we're seeing, good example is we have a 20, I think almost 20 location dealer group in the Midwest. And they've been using our AI employee Jerry, that is a BDC agent, BDC employee. And they've been using Jerry for like nine months since the beginning of the year. And they are, you know, typical dealership has, you know, a couple from like two or three up until 15 BDC reps, depending on their size. And this particular dealership's opening up three dealerships this year. And their plan is to have one BDC human employee. And then that person will basically manage Jerry, our AI BDC employee that can handle all of the inbound leads, schedule test drives and do so much more. So like it's, it's truly changing the way that these these dealerships run and making them more efficient and helping them convert at a higher rate.
What's changed about like the state of technology that has enabled this experience to be, you know, so much better to the point where you're saying it's replacing humans. And what I mean by that is like historically, if you think about a chatbot, right, chatbot historically, it's a very low quality experience, right? It's not human. It doesn't really answer your questions. It's, it can give you the price of a car, but like, you know, it's just not that sophisticated. So what has changed? Like, why, why do you believe that this is now like really the next frontier and like, what's, what's different?
Yeah. So we, I mean, just the, the, the, the large language models are so much better. We've been working with. So little, little history. We went through Y Combinator, which I know you know what that is, but for anybody that doesn't, it's a premier accelerator, probably the best one in the world, like Airbnb, Dropbox, OpenAI, like all these companies have gone through it. We went through it in 2016 and actually fun fact, OpenAI was in our batch. So OpenAI was in the same batch as us, but at the same time, Sam Altman, who's the CEO of OpenAI, he was the president of YC at the time. So this is like his side project in 2016, OpenAI. They've done slightly better than us at podium, but that's okay. But anyway, 2016, people don't remember this, but in 2016, Facebook, they had their big developer conference and they were touting that like the world of chatbots was like the future of Facebook. Do you remember this? Like there were chatbots for games and chat like that. They basically made this huge push into chatbots in 2016. And at the time, we were mostly doing reviews, but we were getting into text messaging for dealerships and helping them increase their conversion rate through better communication channels. And we wanted to pivot our whole company. At the time, we were the highest revenue generating company to ever go through Y Combinator. And so we were doing well. And we wanted to pivot the entire business to become a chatbot company. Like, who's were like, hey, like AI, this could be interesting and you could like be more efficient, but the reality was it sucked. Like any chatbot experience in 2016 was horrible, way worse than talking to a human.
好的。我来翻译一下:
是这样的。大型语言模型现在已经好很多了。让我们来回顾一下历史。我们曾经参加过Y Combinator的加速器项目。我知道你知道这个,但为了让其他人了解,它是一个世界顶级的加速器项目,比如Airbnb、Dropbox、OpenAI这些公司都曾参与其中。我们是在2016年参加的,有趣的是,OpenAI和我们是同一批的。当时OpenAI的CEO Sam Altman也是Y Combinator的主席,所以2016年时OpenAI还是他的一个副项目。他们在OpenAI的表现比我们在Podium好一些,但这没关系。
回到2016年,很多人可能不记得,Facebook在那年举行了一次大型开发者大会,他们声称聊天机器人是Facebook的未来。你是否记得?当时有各种游戏和聊天的聊天机器人。2016年,Facebook大力推动了聊天机器人发展。那时候,我们主要做评论业务,但也开始帮助汽车经销商通过短信提高转化率,并改善他们的沟通渠道。我们想要转型整个公司。当时我们是通过Y Combinator的收入最高的公司,因此我们经营得很好。我们想将整个业务转向聊天机器人公司,因为觉得AI可能会很有趣,可能会提高效率,但实际上,当时的聊天机器人的体验非常糟糕,远不如与真人对话。
And so what's changed is, you know, OpenAI and others have realized that if you build these massive, large language models, they can be really smart. They can be really, really good at conversing. And then with companies like podium and others, if you can get those AI models to follow a path to a goal, like a test drive or conversion, it basically can do the same job and probably a little better than a human. Now, tell me about the application. So you mentioned conversion, right? That was one of the points you mentioned of within the dealership, how you're impacting. Like, what are the real, what are the real applications right now that most dealers are adopting? Like, what's working? Can you quantify? Like, how is it working to give us a little more insight into that?
Yeah, so we have a thousand, we have about a thousand dealerships using one of our AI employees today. And we just launched, I mean, we launched Jerry, we call him in beta in January and then went full, full release in like March. But so what we're seeing is on average, 30% increase in up to 30% increase in conversion rate. And the reason why, I mean, that sounds crazy, right? Like, if I go to a dealer principal and tell them I can increase your conversion rate by 30%. What type of conversion? I tell them like sales conversion. Two sales. And here's why. It's not, we're not, it's not that the AI is so much better at explaining the cars are so much better at converting. It's just the fact that the AI employee is always on. So like 10 30 p.m. at night. I'm looking at like, I'll just share an example. I was looking for, I have four kids and I want to truck. And so I want a six seater truck. So I want one that doesn't have a middle console in the front. So I can put one of our kids in the middle, even though I think it's a very dangerous spot. So that's a concern. But I want a six seater truck. And usually when do I search for cars? It's like at 10 30 p.m. at night when I'm late laying in my bed. But guess what? Like every BDC rep is asleep during that time. So the reason why that we can get such higher conversion up to 30%. And I'm not saying every dealership that works with us getting 30%. We're seeing as we survey our customers. It's it can be up to 30% increase in conversion is because the AI employee Jerry is always on.
So like 10 30 at night. He knows that he knows the inventory. I can text in. Hey, show me all of your car, all of your trucks that have six seats, which actually funny enough that that specific question for a regular BDC rep is very difficult to answer because they have to go through this whole spectrum because that's not one of the standard things that like shows up on the on the on most dealership websites. But the AI Jerry since he's connected to the inventory system of the dealership. He can immediately tell you show you show you give you a list of every single truck they have on the lot and ones that are coming. Coming to the lot that have six seats. So that that alone is creating this massive increase in conversion. And then like after hours and weekends conversion rate on to test drives is going up by. Up to 80%.
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If you're ready to reduce the costs associated with maintaining shuttles and limit the liability of loaner vehicles. It's time to partner with Uber. Visit t.uber.com slash CDG auto today to learn more or visit the link in the show notes below. Tell me more about the applications like how do you view AI continue to be integrated into the dealership model. Right. You're talking you're mentioning right now customer support or like you know the BDC with actual shoppers, right identifying cars getting information. Are there any other applications right now that are big for you or that you're working on planning on launching like what are dealers asking you for what are the problems that you're trying to solve. Yeah, so I mean it goes back to those two big problems I think that everybody's facing right now it's like training and staffing like no like just generally nobody wants an hourly job now in America it's unfortunate but like nobody wants an hourly job and that's a lot of the jobs that exist at a dealership. And so it's training and staffing and its conversion.
And so we started with BDC because we thought that wasn't really interesting way to prove out this AI concept but then you've got revenue mining. So like they you know the dealerships have so much data and they do you know they have teams that do revenue mining and guess what like if you give if you build a AI employer and agent and you build it with the goal of help of proactively reaching out and doing revenue mining activities. It's really really good because it can access all the data it can it can just it's better in a lot of ways than what humans can do. Take that one step further like when you say revenue mining give me a specific example of like what some dealers are doing right is just like hey podium go find me go find me customers within from all my customer data like what actually happens. Yeah so like a great example is like on the service side you got warranty things on the big one for our dealerships is like Lisa Lisa coming like Lisa's leases are coming due.
And so going in and finding every single customer whose lease is coming due in the next couple months and we're doing car buybacks or anybody who's bought a car three years ago like those types of things which you know you can hire an agency you can have somebody in that and like creating segments and sending out both messaging campaigns but these the night the thing is like AI has gotten to a point where you can have an AI do that and it's really really good and it's always working and yeah it's just it's it's pretty phenomenal. You mentioned you mentioned I think you said the word warranties and somewhere there. It's just a repair shop service body shop we talk a lot about like the front end like sales you know variable operations. Right that's the that comes to mind first but what about like service and like everything I've heard on AI and the service side has been related to communication is that what you're focused on anything more.
Yeah yeah so it's it's pretty similar to the sales side but it's basically like hey people are trying to get service appointments all day long and let's let's have and let's build an AI employee just like. Jerry let's build an employee for the service drive that takes these messages takes these inbound leads and schedules appointments and that's that's basically what it can do and then you know right now podium and our employees do text based communication so email text other social messaging channels but like we're working right now on giving Jerry a voice because it can't like it can it's it sounds like sci-fi and it still feels weird even as a software.
I'm a founder to talk about the idea of like a computer talking to our business like our customers customers and but it but it's real like we're seeing the technology I'm sure you watched open AI's demo day a couple weeks ago where they showed Scarlet Johansson's voice or whatever and it's like unbelievable. I'm just about that. Yeah yes I guess it wasn't earlier but yeah like is it gonna is it gonna are people gonna think it's a human? No but like here's the thing if and this is like a thing we use at podium we if we're gonna build an AI employee to do something for a dealership. It has to be better than the alternative current solution so I'll give you an example like if you had the ability to have an amazing a massive BDC team that's available 24 7 that can answer the phone super well trained understands the inventory and schedule test drives that might be better.
Than the day I then Jerry but the reality is that's not the case for any dealerships and dealerships trying to cut costs are trying to be more efficient and so Jerry. The next thing is that the BDC is better and just by the way on the BDC side we most of our dealers find that Jerry has a better test drive conversion rate than their actual BDC reps but that's our core principle like we're not gonna release that is worse than what you currently are doing as a dealer and so on the voice side with service specifically like people are calling it all the time.
They're making appointments are changing appointments they're asking questions and we think that with access to all the data and with the right context and the right training. An AI agent can answer the phone schedule appointments basically do everything that you needed to do to schedule service appointments. You know you mentioned text messaging which is one of the oldest technologies but such an effective tool to get in front of a human customer like we all read our text. I don't know you probably know the exact statistics on like readership rates for text but I can only imagine it's like incredibly high. Is that like fully integrated into your product or like Howard or dealers using that adopting that as much as a normal online chatbot like what are you seeing with texting and how is that working for dealers.
Yeah we're we are partial to texting that's how we started like we started the business with texting we sent out these review invites like everybody gets text message review invites now like every business sends these out. I don't think we're going to go into the technology hall of fame for this but we believe we were the first company to ever build a product that used SMS to send review invitations and solicit reviews. And so we've been text message first from day one and even when we got into like general communication and web chat and everything like that we had this. Our idea was that live chat was never that great because of the you know the fact that it's some you know not usually somebody that's knowledgeable of the dealership. And so we basically have defaulted text message as the primary communication channel for all the podium products forever. And the reason is as a 99% read rate people don't have like 10,000 on red text in there on their phone. And we just think it's a generally a better experience than live chat or phone calls for the most part. But yeah we're we're huge text messages fan or to huge text message fans but you also do it the right way. So like you don't want to you don't want to have if you're a dealer. You don't want the text message channel to become a spam channel right where you're like getting unsubscribed like and now you can't even send transactional messages to your customers.
I wanted to ask you a little bit about what you're doing how CDK and all this you know cyber security is just I don't think I've heard the term cyber security so many times in our industry ever. And it wasn't just the CDK outages right now we have crowd strike outages the other day which impacted dealers and really defenders which you know indirectly impacts them. But it's been it's been a just crazy how this has gone I mean to the extent that I just went and bought some like cyber security stocks. I'm like I gotta get behind some of these like ETFs because I just think the world's getting crazy. How are you thinking about that as a founder CEO right you mentioned you're working with 7000 plus dealers. You're customer facing product how are you handling stuff like that what are you doing about it.
Yeah so I think first of all for dealers I think redundancy super important and I think a lot of dealerships have learned that over the last month like you. Having multiple systems that you can rely on is super important but for us we're we're lucky I mean we're not immune to cyber security threats but we're really fortunate we've been around for 10 years. And so we're not we're not 30 years old. Like there's a lot of software in the industry that's really old and so cyber security wasn't really a big thing and so they've got this huge amount of technical debt to make sure that they can secure their platform. And so that that's one end of the spectrum.
The other end of the spectrum is I'm a brand new company I started a year ago and I'm I've got some like you know AI chatbot or something like that. And I'm so lean and fast that I'm not taking into account the security of the security of my customers data. So I think those are the two ends of the spectrum and you know we're not immune but we've been around we started in 2014 when cyber security and cyber threats were already still a big thing.
And so we've developed our platform in a way we've always had like a security posture and we have security team and application security engineers and all these different things. Because we know that like there are actors out there that want to access to our platform because we send out messages we have a payments product like we you know we're a product that's attractive to scammers and fraudsters. And so we take it pretty seriously and like you know they're always threats and we're just you know we have a team that manages that but it's like it's a huge thing and again back to dealers. It's not something even really think about it until like you know recent history is like you don't even think it always is this vendor gonna get have a problem and yeah like an afterthought almost right so I'm not saying it should be but it's just not the first thing to wake up in the morning you think about right.
Tell me a little bit about if I'm a dealer maybe I'm a client of yours now you clearly have you know really massive market penetration. But what are like give us a little sneak peek into what's next on the roadmap right so today we have these functioning bots which are. You know either supplementing humans or fully replacing right in your case fully replacing other vendors supplementing or fully replacing as well it really depends on the actual application. Like what should I expect as a dealer on how is my dealership going to be run in the next you know year to years as the pace of this tech and AI you know improvement it's it's just gotten the velocities just increased like crazy you see open AI releasing you know new models every like three months or so I mean I'm not I can't even keep track at this point right but what is next as a dealer like very practically speaking how am I going to be retailing cars in like a year two years what's going to change.
Yeah it's it is wild so couple couple things so I just think it's going to be it's going to be so much different than what even you know people dealers on the cutting edge like early adopters that are adopting AI and really leaning in we see a bunch of our customers doing that but like. I don't even think they understand how much it's going to change the world I mean it's going to change our business is going to change your business is going to change every business out there like it's just.
The models if they didn't get any better ever are still good enough today that they can take a lot of the workload of what normal like hourly employees do and I know that sounds evil or like it's going to destroy the economy but like I think what it's doing is it's moving people up into higher level tasks the thing that's not going to do like. A is not great at negotiating and selling and then like creating this emotional connection with the customer so I think the way that the cars are sold are going to continue I think it's going to continue to come down to like a relationship business I think what I can do is it can help the relationship like it can it can help conversion by being quick knowledgeable and.
And you know politely persistent is that what we like to call our agent but the way it's going to move is I think you're not like dozens of a employees in your business I think you're not an a I employee for. BDC I can have an employee I am like we talk about revenue mining you're going to have an a I employee for service drive you're going to have an employee for like parts and parts you're going to have an employee like on the finance side like I think you're just going to have. It's weird you're not like dozens of a I employees doing work for you and you're going to have to have a you're going to have like a platform that tells you what they're doing and you know the other thing to. The other thing I would just call out is when we sign this is like a story that's pretty interesting so when somebody first signs up for Jerry. Jerry's going to make mistakes because like we we've tuned Jerry for OEM automotive but that doesn't but every you know this every OEM dealer operates differently like some. If you if somebody asked about a certain vehicle and you don't have it on the lot some dealerships don't want you to don't want to schedule a test drive. Some even if they don't have the car that you want they want you down and they want you to like test drive something else because they can they know they can order in so there's a very two different paths but so Jerry's going to need a lot of training and so we basically tell our customers like hey how long.
Like just as just like when you hire new employee it takes a couple months or couple weeks to get them up and running Jerry's going to be the same like Jerry's going to make some mistakes right out of the box but the nice thing is you can train him. And he you know after you train him once he doesn't make that mistake ever again and I think that's going to become a big thing is like training these AI employees to be specifically really good at what you want them to do for your dealership and then. One other one other quick story on this we had a dealer sign up in southern California for Jerry and they're already putting customer they're using us for messaging and all these other things and they signed up for Jerry and Jerry's pretty not cheap so sign up for Jerry. And after two days call you know emails us as cancel it Jerry made a mistake cancel this Jerry thing keep everything else so we made a mistake and we didn't turn it off. We forgot so are bad but two weeks later.
There's a we have this partner of ours that's like a consultant in southern California for dealers and the dealer principal I think the GSM called this consultant that was a customer of this consultant or call the consultant that was working with this dealership said hey. Who's who's putting these test drives on the calendar like who's putting these people are showing up for these test drives we have no idea who's setting up. They thought it was this they thought it was this consultant they thought the consultant helps what even stuff and the consultant like looks in the account he sees that Jerry's been like scheduling test drives for two weeks straight. And it's scheduled like a dozen test drives or something like that. And so he tells him like hey it's Jerry goes no no no the dealer goes no. It's like it's not that AI thing it's like somebody's doing this because they're showing up and they're asking like they said that they said that they scheduled a point and they're like he's like no he showed him in podium like. It is Jerry and so they turn it back on because they realize that like this thing's real deal and it's not some like toy. Yeah there's a lesson in there. It's a it's the free trial it always works.
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How are dealers paying for this like are you do you get like co op from manufacturers or houses being funded by dealers. Yes we have a bunch of co op agreements with most of the OEM. Like most of the manufacturers but for Jerry they don't have there's no like AI programs yet so it's we actually had one of the major. We had one of the major OEMs in Utah in our office yesterday and we were talking to them we're like hey look like how are you guys going to create programs for like an AI. BDC and an AI service drive because like this is happening so fast and you know manufacturers aren't the fastest to like. You know get get on board all these technology so yeah we have our main platform and some of our other products like our reviews product reputation management product out our programs but dealers are just coming out of pocket for this right now. And we just chart we just decided. It's funny on the pricing side you can see like outside of dealership tech like with intercom and other like major. Chat providers they're doing like per resolution they're charging like a certain amount per resolution that the AI. Produces and we just decided to go with like a flat rate because I think our dealers dealers want to know what they're going to pay and they don't want to like do a calculation every month to. Understand what their bills going to be. Especially when the first thing that goes to your mind is my competitor going on there running up my bill or something like that or like you know a spam message five times it's a it can get frustrating.
So I get it like what's the bottom line ROI that dealers are seeing then and I this like you know specific to you can be agnostic to the entire. You know AI chatbot industry which I realize that they're all different in functionality. What do you see as like the bottom line ROI right because you mentioned this isn't right now being co-op by manufacturers right do not subsidizing this for dealers dealers are coming out of pocket but clearly if you work with so many dealers clearly the return is there right or else they wouldn't spend the money. And so what are you seeing as like the bottom line ROI. Yes so like I said before up to a 30% increase in actual vehicle sales. And then up to an 80% increase in test drive conversion after hours so that's like weekends and evenings. That's huge right that's huge and that's we're seeing specific customers like we talked to a customer last week and they were like yeah like Jerry scheduled 11 test drives last night this is a multi location group but like. That doesn't happen without Jerry. Another they said Jerry had helped themselves $600,000 in vehicles last three weeks that was from their platform director and then. Yeah like that's basically it like they're seeing hey conversion after hours is dramatically increasing and then our ability to take a lead and convert it into a sale is increasing by up to 30%. And that's it like I mean our whole business from the beginning even when we were just a reviews point solution.
How do we help dealers sell more cars because we knew like at the beginning early days nobody who we were we had no funding like we've since raised $420 million. We had no funding we started the business with $1,500 cash.
And so in the early days we're going to these dealerships all that mattered to us and all the matter to them is like can you help me move vehicles and with reviews we could in the early days. That's still really effective but I think it's more commoditized like every dealer knows they have to have like 10,000 reviews on Google and other places but that's like that's the thing.
What was what was a like selling to those early dealers like just give us a little play by play how was that like for you. Well at first we wouldn't even go into OEM dealers because we were too scared like we just thought like. We would just go into use dealers at the beginning because they're easier to talk to because it's like two to three guys right.
And so we eventually got up the courage to go into a Ford dealership. We just decided to walk directly like bypass every salesperson every reception is just walk back and find the GM's office and just walk into his office. And so we did that we walked in and we like just ignored all the sales reps and walked into this bill this guy bill snake his office.
We walk in we knock on the you know on the doors doors open he's like hey what do you need I'm we're like hey we're from podium we came to talk to you about your reviews. He's like okay sit down and so we sit down and we end up giving him like a 10 minute demo of the product and I mean we didn't really say anything he was just sitting there like no expression and so he says hey can you hold on a sec and he walks out of the door and we thought at the first we're like I think he realized that we didn't have an appointment with him and so he's going to like talk to his GSM and he's going to kick us out and we came back with a check for like four grand.
And he like gives us a check he's like we're signing up today this is exactly what we need. And we didn't even tell him it was like up paid up front we usually collected monthly and on a credit card and so we're like okay awesome we just pretended like that's what typically happens and inside we're free.
We're freaking out and so we like kind of just walked out of the dealership like hey cool play cool yeah we're like play cool we'll come back tomorrow and get your team set up and get everything on boarded. We walked out and we got in the car and we like pulled out of the parking lot and then we like pulled over like 200 yards down the road and we're like just started like celebrating because it was like the first time we'd gone into a legitimate OEM dealer and to like walk out with a check for four grand at the time in 2014 just was like super validating that we were building something meaningful. Incredible you're doing incredible work.
So you are right now you're really focusing on this AI tool it's bringing lots of efficiency better conversion for dealers. Are there any tools or products or any other ways you're currently working with dealerships anything else you want to share. Yeah we're not okay so we're a couple things coming down the pipe that I think are really interesting so we talked about AI we talked about how we're trying to give Jerry a voice so you can talk on the phone and maybe make phone calls.
所以你现在真的在专注于这个人工智能工具,它为经销商带来了很多效率和更好的转化率。你们现在还有在与经销商合作的其他工具或产品吗?还有什么要分享的吗?
是的,我们还有一些即将推出的有趣项目。我们已经谈过人工智能,谈过我们如何努力给 Jerry 加上语音功能,这样他可以打电话,甚至进行电话沟通。
And part of I mean we also have a phone system we built over the last four years. And it's the most technical I mean it sounds funny because phones have been around forever but to build a modern phone system that integrates with all of the other tools and market like marketing products reviews product messaging products that we have. It's been a huge technological challenge and so we're we're still pretty early there but our goal is that a dealership uses podium for all of their communication not just messaging not just email but like phones. We want to want to power their phone system and everything.
And then we want to layer on our AI employees on to all of those different channels and just completely change these dealerships and make them more efficient and more effective. And again it's not like you're going to walk into a dealership two years from now there's going to be no one there. Like like no no employees like there will still be like the cool thing about what we're doing is it it helps like the sales reps.
It helps them sell more. It helps them sell more cars every month and so I don't think it's going to massively change some parts of the business but for that up funnel. You know you know top of the funnel marketing scheduling all of the logistical parts of running a dealership is going to completely change the game. And that so adding a phone system that's modern because it's also wild you've walked into a lot of these dealers that are doing you know 30 million in sales or more.
And they're using like an AT&T landline from like 1990 it's crazy. So we think there's a huge opportunity there. I love it. Well we're going to keep close track. This has been great and very insightful and we're going to also I'm going to put the link to podium and your company in the show notes below. So if anyone's interested wants to learn more see what it's all about they can see below. Any closing thoughts before we wrap up. No I just think what you're doing is awesome. I love it. You know the consumer side is really interesting but then also what you're now you're basically making transparent the how the dealership industry like you're making transparent the auto industry and I think it's awesome. And then yeah like we're we're super super excited. I think the world's going to change a lot over the next couple of years and we're just trying to make sure that we build a product that can help dealers keep up with that.
How do you think one quick last question how do you think our kids are going to buy cars like take me. I don't know how old your kids are but take me like 10 15 years into the future like will they go to a dealership like how do you think they're going to buy cars. Yeah it's funny because we work in a bunch of different industries working you know jewelers furniture mattress appliance retailers medical spas at home services we have like 100,000 customers across all these in verticals and it is interesting like so many things have already gone online. Like there's you know so many things you would never think of going into a store for today like you just go to Amazon. But there is still this you know any service of course like you can't get your plumbing fixed online but like any retail purchase where it's considered purchase you're spending a lot of money or it really matters that you choose the right thing.
So I think you know your mattress furniture appliances cars like I think people still want an in person experience like you still want to test drive something. Like you don't want to you don't want to just like buy a car sight unseen from like looking at videos on the internet. So I mean like I think my daughter's eight I think eight from years from now people are still going to be going down to a dealership or or they'll be experiencing a fit they'll be experiencing the vehicle physically in some way. Like I know there are companies out there that are like bringing the test drive to you now and that's pretty cool but like I just think that that stuff isn't going away that's kind of a core tenant of podium is that like a lot of like these. What people call blue color industries are they're not going away like the technology is not going to like. Make them obsolete and that's our whole thing is like we're going to arm those types of businesses with a technology to keep up but yeah I still think you're going to want to test drive a fifty thousand dollar car. Where you put your money where your mouth is so we'll have to take it from there so I love it.
Eric thanks for coming on this is awesome and really insightful it's great having you on and we'll have to have another conversation sometime in the future after all this goes to the next level so. Yeah thanks done yoshi alright 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. Thank you.