Latest / Auto Collabs / Kamping with the Kilways with Jarrod Kilway
Transcript
- 0:00Two. Two. Two. Two. [upbeat music] This is Auto Collabs. [laughs] Like, why do so- Two... okay, why do sound guys do that?
- 0:15When they're testing mics- I think 'cause it's, like, sibilance and- Like, what?... you know, like, they give it a... I don't know. What does sibi- 'Cause they're too lazy to say one... you just used the word. Check.
- 0:26One. Two. Check one. No, two- One... I think it's because you get the high end, the t-t, and then the low. Yeah, yeah, yeah. Right. Two. Yeah, 'cause one is a very, like, calm word. One. Yeah. Two. I don't know. Two.
- 0:37But every time we get a mic now, that's all we do- It's got pulses... like a bunch of morons. I'm gonna look it up. And so we had to drag the moron-ish into the podcast this morning. [laughs] You're welcome, everybody.
- 0:47[laughs] Oh, my gosh, I love today's guest because we've had a relationship with him back when he was on the front lines of causing massive trouble with Brian Kramer at the dealership in Florida. Oh, so much trouble.
- 0:59They, every time you turned around they were like, "Whoosh, nobody's done this before." [laughs] "Whoosh, nobody done this before."
- 1:04And then the, the hard part is, and I, I can only imagine what it was like trying to deal with those two as from, like, an OEM level. Oh, no. Yeah. Because- You were done...
- 1:13because you always knew that whatever you said to them, they were gonna show you the data to prove that you were wrong. And- Right... you're, "Oh, they're g- oh, not again." Yeah. The, yeah. Well, not anymore.
- 1:22Kilway's, like, a pure out-and-out data guy. He's like, "If the data says it, we do it." [laughs] It is what it is. So not anymore, though. Not anymore. Now he's, he's gone, he's gone partner side. Oh, yeah.
- 1:33And, uh, he can help- It's good... a lot more dealers, though. It is. It's good. [laughs] It's good. Well, hey, listen, we hope you enjoy this for at least- Listen here... one or two- [laughs] Two... minutes. Minutes.
- 1:46[laughs] With our pal, Jarrod Kilway, on this session of Auto Collabs. [upbeat music] Jarrod, how you doing today? Doing great, Kyle. Yeah? How about yourself, buddy? Oh, man, I, I'm happy.
- 2:01I even wore a white T-shirt today. [laughs] The people listening can... Like, whenever I'm wearing a white T-shirt, it's just kind of one of those slightly brighter days- Yeah... and you feel like you...
- 2:09I, I always, like, the white T-shirt is always a contrast to the outdoors. Oh. Right? So it's like, if y- if the white T-shirt's on, it's 'cause the outdoors are like, "Eh, no."
- 2:18This is how you know he works behind a computer, 'cause he's like- [laughs]... "How can I diffuse sunlight and bring it into my office?" [laughs] Yes. Exactly. Exactly. Bring that into my eyes.
- 2:28Well- You're smiling only like a dude who's camping. Jarrod. Yes. That's, that's Jarrod, not me. [laughs] Yeah. No, no. Yeah, that's Jarrod. Super. You're, you're- Glamp- glamping, not camping... I- Glamping...
- 2:41you're glamping. Now, is that, like, a full-time pod for you? Or i- did your wife make you- Look... get out on the backyard, or what's the, what's the deal?
- 2:48Well, for the people just listening, Jarrod is obviously not in a living room. Yes. [laughs] I mean, he kind of is. It is. Eh, it's a living room-ish It is... space. Yeah. So where you at? Tell the people.
- 2:59So, yeah, so no, we're in Miami. We're in the, as the kids and say, as well as the co-workers say, it's the mobile command center, so, uh, we're down here in Miami.
- 3:09This started actually last year after the hurricane hit Fort Myers.
- 3:14And the, you know, for everybody who knows me, knows about my kids and how passionate I am for them and their goals and their sports, and uber competitive gymnasts,
- 3:26so their gym got destroyed and we transitioned and invited over to a gym here in Miami. So obviously Miami and the cost of living is very expensive, so here we are in a, uh, 36-foot RV. Wow.
- 3:43Tell me your family has a vlog. No. Come on. That's vlog material through and through. Don't all of us wanna know what the Kilways are eating for dinner tonight? Absolutely. That is such vlog material. It's unbelievable.
- 3:53Chicken rice, chicken rice and beans. Camping with the Kilways. [laughs] Camp- Hey. There you go. Oh, my goodness. It's over, man. [laughs] If that's not your YouTube channel, K- and then the camping definitely has a K.
- 4:03And then when you're like- Quite obviously... C- And, like, the bottom half-... Miami... of the K is, like, a tent. Right? Oh. No, yeah. Nothing says camping like Miami. You're welcome, Jarrod.
- 4:11[laughs] Thanks for joining us on the show today. Yep. [laughs] He's like, "I gotta go. What are you doing?" Yep. "I'm set on my page." [laughs] What, what... Okay, so this is...
- 4:20I, I wanted to ask you this because, I mean, I know from my wife's history as a ballerina, like, that, like, some of these things that a lot of us don't think about in the world, like ballet and gymnastics, is a whole other level.
- 4:33What's the parent's perspective- [laughs]... on having competitive gymnasts in the house? And not just one, but multiple that are, like, getting invited to be at the gym. Four? He's saying four. Four. Yeah. Four. Wow.
- 4:50Four. What is that like? Like, what... There's, there's multiple dynamics, but just give us a little taste of, like, how it is parenting in that environment. Well, I mean, it's, it's a challenge.
- 5:03And when you factor in homeschooled on top of that- True... I mean, it's a, it's a commitment, but it's not just a commitment as, you know, a, a parent, but it's also a commitment for them.
- 5:16You know, they're held accountable to what they need to get done for school, learning, education, um, but also in terms of that work/life balance.
- 5:25And that's what I go back to and, you know, we rewind the tape to our younger days of, you know, ages between 5 and 12, where we're just out getting stuff done, riding bikes and, you know, causing a ruckus.
- 5:38These kids are committed now. You know, they're up at 6:00 every single morning. They're knocking out breakfast.
- 5:45They're knocking out an hour and a half, two hours of school in the morning, going to practice 9:00 to 5:00, hour break from lunch, come back, knocking out school for another two hours afterwards.
- 5:57I mean, it's like a full-time job, but- BeyondIt's, it's- Goodness... it's their passion. This is their goals. This is their dreams. And who are, who am I as a parent to take away my kids' dreams?
- 6:10We're gonna make sacrifices as a family to support them, and that's what we've done. Now, that's included our sacrifices as well, as, as I'm sitting in the RV.
- 6:20But the reason why it's called glamping is the beauty of technology, is, hey, having Starlink. We got Starlink outside. It's faster than- Right... my internet even at home. [laughs] So these are things that we could...
- 6:32This could never have happened in my parents' timeframe. But with the evolution- It couldn't have even happened, like, four years ago. [laughs] Exactly. [laughs] Golly.
- 6:43So it's, it's a pretty cool experience, but it makes you realize how much you don't need stuff. Hmm. Hmm, yeah. It's simplification. Oh, see, now is- everyone went, "Mm-hmm. Mm-hmm."
- 6:55[laughs] This is how we know Jarrod's not Italian, because my question was gonna be, like, how often do you keep this whole thing in your back pocket when you get attitude? 'Cause I know my- Yeah...
- 7:04parents would be like- "I will drive this RV-" "We went homeless for you." [laughs] Right. "Homeless." [laughs] That's amazing. But it's- This is actually...
- 7:17It's the second pod this week that literally parents have sacrificed their entire living situation. I'm never letting my kids listen to either of these two. Either of these two. [laughs] Yes. Right?
- 7:31To do this, and this is, this is what's cool, you know. Like, okay, starting to connect this back to auto, because we're obviously in auto, and a lot of people listening to this podcast are in auto.
- 7:41It's called Auto Collabs, you know. [laughs] I, I see this as such a...
- 7:49Uh, there's so many parents and so many families in auto that take a path of, like, their children being diligent and intentional and driving for success early in life. Like, I see all of our families doing that. Mm-hmm.
- 8:04And I think that there's this nature in people that get in auto that are just motivated at a different level than s- than people in some other verticals might experience. And for us, it starts to be normalized.
- 8:16It's like, oh, yeah, Kalay moved his family and put them in a cam- in a camper, right? Steve Russell moved his family to Nashville for his da- You know, and you start to see this, like, repetitive rhythm.
- 8:26But in auto, we, we have this motivation level because of what we've experienced and the type of industry that it is that drives our kids.
- 8:35Um, and the, the thing that I'll ask you, because you're, uh, you know, because of the, the four kids and their friends is, like, we keep saying this, and maybe you've experienced this, but we're seeing these, like, next two generations, the one that are kind of, like, in college and just out and younger- Mm-hmm...
- 8:52as some of the most driven generations of the past three generations that have entered the workforce. The word I like to associate is commitment and passion.
- 9:06And those two things is, that's what I see, not just from my girls.
- 9:10There's girls here at their gym that are from, you know, France, that their parents are still living in France, and they're here with their mom and go home once a month. I mean, this is- Wow... ultimate commitment.
- 9:23But it's because the passion these kids have and the diligence they're working to it. It's not just, "Oh, it's recess, it's playtime."
- 9:31There's some extreme commitment for these kids to hit these goals they have, which, going back to the automotive element to it, this is...
- 9:40You know, my daughter see all the time, like, "Dad, you're grinding, you're working.
- 9:43You know, you know, it's 10, 11 o'clock at night and you're still out on, you know, outside at the picnic table sitting there with your laptop just working, getting stuff done." Where
- 9:55all of her f- some of her other friends' parents, they'd be like, "Oh, they're hanging out, they're doing this," and you're still working, still grinding. There's no clocking in and clocking out.
- 10:05And they're seeing that passion that we have collectively, you know, as you guys did and sacrificed all your time. You're saying you don't make the sacrifices.
- 10:13You guys just did it the past couple weeks at a SoDo, so don't discredit yourselves there. But these are the passions that our kids are seeing and applying to their goals, to their wants.
- 10:26And what we're gonna see from that is a whole different generation. So you think that pers- these kids, when they wanna go buy their first car, do you think they're gonna wait
- 10:36in a showroom for more than a half an hour- [laughs]... to take delivery? That's not- Wow. See, I see what you did there. Well done. [laughs] That's not gonna happen.
- 10:46Their patience level, because they value time as this younger generation higher than anyone else- Wow... because we've taught them time and value.
- 10:56But, yeah, but they, they value it not because they want it all to themselves, but they see what the value of time can be if used appropriately. Correct. Right?
- 11:04Sure, and they, well, they also, it sounds like, have an idea of what they wanna do with their time, right? Mm-hmm. And so they are like, "I have productive things to be doing, and so four hours here is not productive."
- 11:17Yeah. It's funny you say this. Like, I had a, I was at the kitchen table the other night with my kids. Oldest is 14, youngest is 10, right? And we're talking about cash, cash is trash.
- 11:28Like, you gotta exchange your cash for things that grow in value, and we're... And, and they're like, "Yeah, that's appreciation, Dad." And I'm like, "Oh, say what?" [laughs] I'm like- Who's who?... "How do you know?"
- 11:38What? And I'm like, "What's it called when it loses money?" They're like, "Oh, that's depreciation, Dad." I'm like, "Who's teaching them this stuff?" [laughs] Big- TikTok. What is peer influence, Jarrod? TikTok.
- 11:48That's true. They are, they're, like, dialed into some- something in the ether is, like- Mm-hmm... conditioning them to- Oh, you're right... to be a real juggernaut. Jarrod's right. TikTok, Discord, Twitter, uh- Yeah...
- 11:58Reddit. Instagram. Yeah. I mean, they are self-educating now and learning things at 10, 12, shoot, my five-year-old even, and it's like-Wait, where are you- yeah, to your point, where are you picking this up?
- 12:11And it's because they're doing their own self-discovery knowledge behind it. Like my- Yep... my 12-year-old wrote her own Roblox game in a couple hours because she wanted to see if she could do it.
- 12:22[laughs] And I'm like, "Was that a time value that you did?" She goes, "It was more or less I wanted to see if I could." How old, how old is she again? 12. Uh-huh. And she works for the Pentagon now. Yeah.
- 12:32[laughs] You didn't know they have a presence in Roblox? They do. You just don't know about it. [laughs] I, I welcome the free education. Trust me, what- Cirilo- Yeah, yeah... what were you doing at 12 years old?
- 12:44What was I doing at 12 years old? Yeah. I was recording... So Windows had a voice recorder, and I would record- I remember that...
- 12:50sentences in it, then play it backwards, memorize how it sounded backwards- Try to say it backwards-... and then record it... and then reverse it. Yeah, yeah, yeah.
- 12:59I mean, that's- And putting hockey cards in my bicycle spokes so it sound like a motorcycle. I was definitely doing that. Yes. [laughs] Definitely doing that. [laughs] Oh, man. Sideways.
- 13:09So you, I, I wanted to get, uh, obviously you've been now with Connect for what? A little over a year, right? It's been, it's been a year and a half now, so yeah.
- 13:19And you've spent time, like, back and forth kind of between the vendor side of the community and the dealer side of the community, got to see both sides, and this is, like, your first foray into kind of, like, a very streamlined technology, right?
- 13:33Like I s- and you've spent time with Vin, which is a little bit more broad because of the type of things, but, like, the streamlined technology of, of Connect and, like, being diligent about conversations.
- 13:44What have you seen and learned over the last year that you've been with Connect that maybe is, like, new, fresh things that maybe weren't a part of your learning as part of Vin Solutions or the, or the dealer side of the world?
- 13:56It, it's education. I mean, it's the education not only, uh, for ourselves as companies as we grow, but it's also the education for the dealers on what they don't know and what they perceive certain instances to be.
- 14:09You know, biggest thing to look at is what percentage of your leads come in during after hours? Like, that's not a metric that most dealers are measuring. Mm.
- 14:19But we, we measure what our contact rate is, or a set rate, or some stores just look at lead-to-close rate and, okay, if I'm at 12%, I'm good, check the box and I'm gonna move on to something else.
- 14:30But there's so much more. Looking at, for example, most dealerships on average, we're seeing about their aggregate of sold from after hours being 15 to 20% of their total sold from internet. Mm.
- 14:45But about 35 to 40% of all of their lead volume is coming in during that time. So there's a huge opportunity there. So, so let me track that.
- 14:56So as a percentage of lead volume, after hours leads are less, but as a percentage of, or as a closing rate goes, it typically is higher- Mm... it sounds like. It's opposite. Opposite. Opposite. So you- Opposite. Okay...
- 15:10yep. So you have 40% of your leads originate while you're closed. Right. When you look at everything you've sold for the month from internet leads, it's only 20% of that total aggregate is happening- Okay...
- 15:23from your after hour instances. The aggregate. So there's a lot of opportunity from when you're closed- But like a 20% gap on what the lead volume is for- Yes... the close rate. But the close rate gap is 60%. Mm-hmm.
- 15:39Wow. So I, I ask dealers the t- question every time. I'm like, they're like, "Oh, what do... We don't know." When's the last time you mystery shopped your store when you're closed? We do it when we're open.
- 15:48When did you, when is the last time- Oh... you did it when you're closed? Oh, that's great. That's like, I'm already, I'm just- [laughs] Everybody that's listening to this should be writing that [laughs] down.
- 15:57Like 9:00 at night tomorrow, mystery shop, see what happens- Oh, yeah... the next day. Do it at 6:00 in the morning. Wake up early, jump on your phone.
- 16:05Yeah, because h- okay, so if you listen- 'Cause that's where 40% of your leads- A lot of people are having that experience, whatever it is. Yeah. Because that's when they're off work and shopping. Exactly. Yeah.
- 16:14And then those become, as we call them, Kyle, you've sat in store for a while, those are the ghost customers. Those aren't, those aren't good leads.
- 16:21Those are, those people just ghost us all the time and it's because we are prompting them to call them at 9:00 in the morning, but yet they submitted the lead at 3:00 a.m.
- 16:30and are probably working night shift and are sleeping, so now they've just put you on the block list because you just woke them up and pissed them off. [laughs] Interesting. I mean, I would.
- 16:42You just, you just need to respond at 3:00 a.m. when they're tired and make not great decisions and your close ratio will go up. Yeah. [laughs] I'm just kidding.
- 16:50[laughs] It's funny- You just then need to have an all night person, right? Yeah. Well, that's, I mean, that's where like- That's what we are... obviously Connect comes in... that's what we do. Right? Yeah. That's- Yeah.
- 16:56That's where, like, having, having an AI or a responder that's intelligent enough to take the conversation makes a whole lot of sense. But yeah, like, that's not a data point. I mean, I've... I ran BDCs for eight years.
- 17:07I never pulled, like, what's my after hours lead closing ratio. Mm-hmm. I... If there's a dealer listening to this or you know a dealer right now that's doing that, someone DM me 'cause I wanna shake your hand.
- 17:21[laughs] So when did, when did you come up with that? Did you see somebody doing it? Did you just think like, "Hey, this makes sense to do it"?
- 17:28I mean, it came about, you know, with just in conversations with dealers and just digging into the data and looking to see, okay, what is going on?
- 17:37We saw the lift of, you know, beginning half of this year, the lift of, you know, cost of leads, uh, as the lead gen cost have continued to go up. Mm-hmm. And we're looking at it from a marketing standpoint.
- 17:49You know, what, how much are we spending on, now go that route here, I'll pivot on that in a minute.
- 17:55But with this additional cost of marketing to do customer acquisition, how much of this marketing spend is during hours versus after hours, and what are the ROI metrics to it?
- 18:07What's your Google paid search cost per click after hours versus during hours at a conversion rate to figure out what's your con- you know, true acquisition cost?On hours, off hours.
- 18:19I mean, shoot, if you're, if it's really low during off hours, how do you know your agency is not pushing more towards times you're closed to show a lower CPC number, but yet a hi- a lower ROI perspective because we don't have a set process for after hours?
- 18:36Mm-hmm. I also... There- there's like a spin-off here too where I'm like- [laughs]...
- 18:41even with that level of data, like backing it to my Google Analytics, my site data, looking at user behavior, seeing what hours people are truly coming to visit, and then coming up with content and campaigns that meet them at the...
- 18:55It's like, "Hey there, uh, night owl," you know, like- Yeah... talking to people in language they... They're like, "What? They know me so well," you know, sort of a thing. I, I love that- And-... side of it, too.
- 19:05And we've really start, you know, dug into it and found a higher percentage of those instances are coming from third parties comparable to dealer website. And- Mm...
- 19:15matches the customer journey from, you know, the third party sites being that mid-funnel level shopper compared to somebody on dealer website that is more lower level.
- 19:24I'm gonna go shop those third parties at 2:00 in the morning, maybe submit my info to a couple of them, get some feedback to them.
- 19:30But then when I find the real one, that's when you see that website conversion during hours as that second instance, because they've picked you as the, uh- Mm... the person they wanna talk to.
- 19:42But if you can create a leaving impact from the instance on the third parties
- 19:49and make them want to engage, and then hey, book a, like what we do, we sit there and book a phone call appointment for them the next day, try and answer a few questions, and get them connected with somebody at the right time when we know they're gonna answer.
- 20:01The answer rate and engagement rate is just off the charts. 'Cause it's less about what we want as a dealer to follow this checklist of process and more about the customer. Do you get tired ever? [laughs] No.
- 20:16I have four kids. There's no such thing. [laughs] Not allowed. This is what I do at 11:00 at the- Yeah... picnic table. Yeah, yeah, yeah. At the picnic table. That's what it is.
- 20:25I'm just picturing someone stumbling upon this that's not in auto, and they're like slowly putting on a, an aluminum foil- Tin foil hat. [laughs] Right. Yes, exactly. I love the data on this.
- 20:36I wanna give you a chance just before we close up. Uh, you all just re- uh, recently announced, uh, a round of funding and excited to see what that happens.
- 20:45Tell us a little bit about that, how that came about, and what you're excited for, uh, the future of Connect. Yeah. It's...
- 20:50No, the future of Connect is, is extremely exciting with this announcement of our seed raise, uh, funding with Silverton.
- 20:58And raising 5.5 million to continue to grow and educate not only the dealers, but other partners in the space about how AI can really help assist the next generation of customers in the next five, 10 years. Geez.
- 21:14Congratulations. Wow. Talk about rocket- I'm ex- Talk about rocket fuel. Yeah. No kidding. And, and multiple cell phones. And mul- [laughs] Multiple cell phones, multiple, uh, addresses and ZIP codes, yes.
- 21:27Man, that's crazy. [laughs] I feel like we need to have a bigger conversation, but certainly, um, you know, we love hanging out with you. Excited that you are, uh, glamping and getting things done regardless.
- 21:38Maybe that's the thing. Maybe we're talking to Jared's AI right now. I don't, I don't know. [laughs] I don't know what's happening right now.
- 21:43But, uh, nonetheless, Jared, thanks so much for joining us here on Auto Collabs.
- 21:49[upbeat music] Uh, this is what Reddit says, "The word two is almost perfect for testing a system because over the length of the word's pronunciation, you'll hit nearly the entire audio spectrum."
- 22:02[laughs] "Especially if you pitch down to ooh as you end the word." Hey, that was my guess. Two. That was my guess. Oh. Two. Two. Two is a terrible word for testing audio.
- 22:09Especially if you give it a little ooh, like you give it a little up- Two... right at the end, there at the back. Two. Two. Okay. I think, I think we've lost all our subscribers by this point.
- 22:19[laughs] And there goes my mom. Right? She's even gone. [laughs] Well, Cirillo's lost his glasses after that podcast.
- 22:33Uh, mainly because all of us lost our glasses when, like I predicted at the beginning, Jared came with the data. And the f- Have you ever heard- [laughs]... a conversation in auto
- 22:48at any conference, clubhouse room, LinkedIn post, anything like that, where someone's like, "Well, we haven't really analyzed the data of after hours contacts yet"? Oh, that was unbelievable. [laughs] Oh, right.
- 22:59When a lot of people call still. Duh. Before and after work. That's it. Oh, right. Okay. The time of day when people are home and not working. Mm. That makes so much sense. So good. I mean- Like- Good Lord.
- 23:09Speaking of- Everybody should be in on that...
- 23:11I, I still don't know what to do with the whole, like, we moved to Miami and live in a 36-foot, you know, motor home to be part of this gymnastics thing where people fly their children across the ocean to participate in.
- 23:25Like, that level of commitment and performance is like, it takes a rare person to be committed to that in general, but then committed to that for your kids. Um,
- 23:35I, I- I, I mean, y- yeah, it, it shows his commitment level, too. 'Cause can you imagine sitting at a picnic table with a beautiful view by a beach somewhere, I'm guessing, and having to w- work? Like- Right.
- 23:46I wouldn't get anything done. [laughs] There's gotta be all sorts of mosquitoes on his la- Oh, yeah. Like, all on these guys. He's gotta hate that. And he still gets it done. [laughs] Still get it done.
- 23:55Still gets it done. I'm picturing, you remember the movie Goofy, the Goofy Movie? I'm- Oh, what a good movie... I, I'm picturing he, he's got the RV that Goofy's friend has where, like, they, like, set up shop.
- 24:06He pushes a button. Do, do, do, do, do, do, do. There's, like, a bowling rink or a bowling lane. [laughs] And a s- ice skating rink and a hot tub and all the things. That's what I'm picturing. That's, that's exactly it.
- 24:15And that's a great- It's a great reminder of what happens in this industry that nobody sees, and the just, the type of person that excels in the auto industry is committed and driven, and they just figure out a way to make it work.
- 24:26And they're strangely good at manipulating the world around them to still fit and to still work, right? And I think he's just par for the course when it comes to this auto industry.
- 24:37And, uh, every time I think I'm, "Ah, I'm not gonna be surprised anymore," I go ahead and get surprised again. [laughs] Well, we hope you were a little bit surprised as we were on, uh, this podcast.
- 24:48Just the cool learnings, insights, and conversations we have with Jared Kilway. On behalf of Paul Jay Daly, Michael Cirillo, and myself, Kyle Mountsier, thanks for joining us on Auto Collabs.
- 24:58Sign up for our free and fun-to-read daily email for a free shot of relevant news in automotive, retail, media, and pop culture. You can get it now at asotu.com. That's A-S-O-T-U.com.
- 25:10If you love this podcast, please leave us a review and share it with a friend. Thanks again for listening. We'll see you next time.
- 25:18[upbeat music] Welcome to Auto Collabs. [laughs] Welcome to Auto Collabs. [laughs] Are we recording yet? Are we rolling yet?
- 25:36Not yet.