"Own your backyard" - The Fastest Way to Increase ROI In Your Dealership | Troy Spring, Founder Dealer World
Is your dealership spending more on ads but selling fewer cars?
Many automotive retail leaders pour massive budgets into marketing, hoping to generate more traffic, only to find their ROI shrinking. What if the answer isn't "more" but "smarter" – starting with your own backyard?
From this episode, you’ll discover:
Why "owning your backyard" is the most profitable, yet overlooked, growth strategy in automotive sales.
How to audit your current lead processes to find and plug the leaks in your sales funnel before you increase ad spend.
The three non-negotiable accountabilities that drive success, and how to identify where your team is falling short.
Why returning to foundational sales principles, not chasing shiny new tech, is the key to sustainable dealer growth.
Troy Spring, CEO and Founder of Dealer World and Co-founder of Dealer Funnel, shares decades of expertise on optimizing dealership operations and marketing for maximum ROI.
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Timestamps
00:00 Meet Troy Spring
00:35 Why Basics Still Win
03:41 Sales Is an Art
04:26 AI Hype vs Process
04:59 Traffic Is Not the Fix
06:55 Audit the CRM Funnel
14:51 Own the Backyard
17:07 Mail Your Database
19:02 Built on Fundamentals
20:03 Connect and Wrap Up
20:47 Podcast Outro
Episode Brought To You By FlexDealer
Need Better Quality Leads? FLX helps car dealers generate better quality leads through localized organic search and highly-targeted digital ads that convert. Not only that, they work tirelessly to ensure car dealers integrate marketing and operations for a robust and functional growth strategy.
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Episode Transcript
[0:13]
Michael Cirillo: I'm here with Troy Spring, the CEO and founder of Dealer World and co-founder of Dealer Funnel, right here on the Dealer Playbook. I want to get into this with you because you've been working extremely diligently — and I mean diligently, not just hard — on so many innovative things. But something I want to touch on: why is it that the foundational things you're seeing are still working today?
[0:46]
Troy Spring: Look, the basics are just always going to be the basics. I'm getting old, to be honest. I'm doing everything I can. But in all factuality, I sold my first car 38 years ago. All the things that you're taught those decades ago, they really do matter today. And I mean that genuinely and sincerely.
Are you doing the basics? Is the meet and greet good? The meet and greet might have started with AI — that's the buzzword we'll talk about in a bit. It might have started with a phone call, on the lot, or even an email. But is that first connection really powerful? All the way through to — did they drive the car?
All the things we were taught coming up in this business, and yet there are 50,000 people in town right now trying to figure out how to be more efficient. And their idea of efficient is cut corners. Do less. Find some magical chrome-plated squirrel AI thing that answers a prayer for them. I don't say that to sound cynical, but I'd love for people listening to really think about this as we dig in: are you sure that the advancements you're putting in place, the things you're shopping for and spending money on, are really going to help you be more profitable, drive more ROI, and drive scalability in the dealership? And are you still committed to the basics?
[2:29]
Michael Cirillo: As I'm listening to you, this isn't one of those things where it's like, well, a broken clock is right twice a day. We're not just passing through the basics again. What I'm hearing you say is they worked all along, and we went through a season where we hoped they weren't the things that had to work.
[2:49]
Troy Spring: I truly think this, and it may not be popular — but that's okay. I truly think that over 50% of the industry — and that doesn't necessarily mean dealers specifically, it could mean staff, the sales floor, sales management — if you asked them what the basics of the road to the sale are, you'd probably get a lot of different answers and nothing very consistent.
And why does that matter? Because no matter how we're driving traffic in, how we're generating or working the lead, there's going to come a point in time where a human has to touch that customer, understand where they are in the journey, and make sure the rest of it goes smoothly. It's become a bit of a lost art.
[3:45]
Michael Cirillo: I like that you use the word art, because it is. It's not even a commodity anymore — it's an art form. Being able to speak to someone, genuinely and actively listen, observe, and seek to understand the position they're coming from.
[4:01]
Troy Spring: You use the word commodity and I use the word art. I love that you said commodity because that's the problem. People are looking for commodities. They're looking for the shiny chrome-plated squirrel running across their path and thinking, that's the answer. The commodities are really becoming the issue. Everyone thinks AI is the answer. Everyone is shopping for an AI solution. I own a healthy portion of an AI solution myself. But I don't think it's the end-all-be-all answer. I think it's a very important factor in creating efficiencies. But you've got to build those efficiencies around the basics — the road to the sale. What tools, what tech, what AI are you buying that is helping those basics become more efficient? Not skipping steps. Making them better.
[5:00]
Michael Cirillo: Talk to me about this because it ties into something I've always appreciated about you. You're like, hey, I get it — there's all this hype and zealotry. But let's get to the root cause of the problem you're actually facing. I know you hear this a lot in agency world: "We need more traffic."
[5:25]
Troy Spring: Listen, I own an ad agency. I hear that every single day. And if I'm chatting with a client, or our staff is chatting with a client, we're all trained not to just say, okay, let's spend more money to drive more traffic. We'll hop into the CRM and really deep dive into what are you doing with the current traffic you're already getting.
It starts with budget. You spent $40,000 this month to drive traffic. Let's go into the CRM and see what that drove, how many leads you have, what the sources were, and where they came from. Then we may break it down and say, let's actually spend a little less next month and focus on getting more out of the leads you already drove — because your closing ratio, your set ratio, your show ratio are not where they need to be.
Even at the agency level, we're not a BDC training agency, but I'll be darned if we're just going to sit on a call, hear "I need more traffic," and say okay, let's just throw more money at it. That is not always the answer.
[6:55]
Michael Cirillo: And tell me if this tracks — traffic and leads are actually the easiest thing to get. But you're saying let's talk about getting more out of what you're already getting.
[7:10]
Troy Spring: Before you pour more gasoline on that fire, let's make sure it's super efficient and you're getting everything you can out of it first. Create all those efficiencies, get the right close ratios, get everything dialed in — and then say, all right, the process is really locked in now. On my $30,000 spend, if we're truly efficient with great ROI and a great close ratio, then we can confidently pour a little more gasoline on it and start to scale.
The problem I see a lot of dealers make is they want to scale before the process is built out. So they pour more gasoline on it and what happens? They almost dilute it even more. Now they have more traffic, the processes are broken, and suddenly they don't even have the bad closing ratio they had before — they have a worse one. And they're just lighting money on fire. And a lot of them don't even realize it until they're so far down that road.
[8:15]
Troy Spring: Let me say this — I work with a lot of really dialed-in dealers, and I'm very fortunate. Our stable of clients is really dialed in, and I'd like to think we've helped them. But at the end of the day, when we sit with a new prospective client, that's where I see the most issues. We have conversations like, "You asked me to do this, but are you okay if I say no to that because it's not the right answer? Let's dig deeper and find the root problem first."
[8:57]
Michael Cirillo: What do you say to those who are maybe stuck in this hyper loop but haven't been willing to admit there's a bigger issue they should be looking at? Because this is a facts and actions thing. You're essentially saying, let's get into the CRM and look at the real facts — the visceral truth of what's going on. Because once we have the facts, then we can match them to an appropriate action plan.
[9:22]
Troy Spring: Facts and actions. Sometimes you just can't convince someone, and that's a reality we face. But what I love more than anything is when we run into that client who is troubled — struggling, not understanding why they're not selling more cars. They spent more, didn't sell more. Hired someone new, didn't sell more. And when that partnership comes together and they truly buy in — when they see that we're not just a vendor trying to sell them something but a long-term partner — that is the most satisfying thing.
On the flip side, it is frustrating when someone can't see the path and they're very stuck in their ways. Honestly, that's where we have our churn as an agency. If I really look at where we lose a client, it's typically that there wasn't a solid commitment to the path. And the path has been proven over and over and over again.
[11:12]
Michael Cirillo: I'm going to break the fourth wall right here. You need to be paying attention to this because what Troy is saying is absolutely true. There is more than enough data in the process he's describing to prove results and prove ROI. If you've been constantly looking for the next shiny thing to solve all your problems and nothing has changed — this is probably the reason why. You just have to be willing to put in the work.
[11:53]
Troy Spring: Do you mind if I interject for one second? There is a real writer-downer here. I call it the accountability of three — three accountabilities in this process, and that's it. If you simplify it and make it easier to digest, the dealer, the managers, the partnership can grow and foster.
Accountability one: the agency. We are responsible for driving traffic, increasing leads, and making sure your budget is being spent wisely so that you have people to talk to — whether that's a walk-in or an inbound lead. That's our job.
Accountability two: that lead lands somewhere, probably in your CRM. Someone has to set that appointment. Whether you have an outsourced BDC, an in-house BDC, or a cradle-to-grave model — it doesn't matter. Someone has to be responsible for getting that person to set and show.
Accountability three: now it's on the sales manager, the GSM, the showroom floor. Someone has to be responsible for closing at an acceptable rate.
Break it down that simply, and this is where I see dealers smile — they'll say, "Man, you just simplified it so much." Hey, if I drive enough traffic, have a solid set-and-show process, and have a great sales manager — you're right. That's the funnel. Leads go in the top, they go to the BDC, they go to the showroom floor. And when there's a leak in any funnel, you can see it. You can find exactly where it's falling apart.
So when a client says "I need more traffic," we go look for the leak in that funnel first. That tells us whether we should spend more money, spend less, where to spend it, or what to fix first. If we need to plug a hole, we go plug the hole before we spend more money to drive more traffic.
[14:51]
Michael Cirillo: You're really focused on the operation, and I think that's what sets you apart. As we start to wind down — if a dealer principal or senior manager is paying attention right now, what is the one change they should consider making first to improve ROI without adding more tools or ad spend?
[15:09]
Troy Spring: I love that you asked me that, especially since I own a tool that does all of this. But in all honesty, we've had this answer for the last decade and a half: own the backyard.
Ego is the most expensive thing in America. We are surrounded by it. We'll sit with a client and they'll say, "I want to conquest this zip code and that zip code and go after that dealer 40 miles away" — and they have zero pump-in, pump-out data. All they know is they don't like that guy across town and they want to go after him.
Meanwhile, the first question we ask every new client — no matter how many digital tools, AI solutions, or lead nurturing platforms we have — is this: when is the last time you mailed your database? With a hard copy piece of mail, sent to their home, telling them you want their business.
It's not rocket science. But dealers will spend $10,000 more on paid search when there's no impression share left to capture, or they'll spend money chasing someone 40 miles away while forgetting about Mr. and Mrs. Johnson who bought a car from them three and a half years ago and live right next door.
We've spent over a decade telling dealers the same thing: own the backyard first. That's the answer. There are acres of diamonds in your own backyard.
[19:14]
Michael Cirillo: You've given me a lot to think about. And I think the reason what you're building is so innovative is because you are so deeply rooted in what actually works. You're not building for the hype machine.
[19:17]
Troy Spring: No. Even in the software business, everything we've built for lead nurturing and communications is rooted in everything we just talked about. There's nothing here that isn't grounded in that theory of the funnel. What we built was to help stage two be more efficient — to set more appointments, get more shows, follow up with leads, and get better ROI out of the leads you're already working. We don't ask how many leads came in last week. We ask how many leads are in the system right now and how can we nurture all of them in a way that creates engagement. We just want engagement.
[19:55]
Michael Cirillo: Troy, I feel like we need to shout this from the rooftops. That's one of the reasons I wanted to have you on the show. As we wind down, how can those listening or watching connect with you and learn more?
[20:08]
Troy Spring: The easiest way is to find me on Facebook, LinkedIn, or Instagram. Or honestly, just call or text my personal cell phone. It's 610-570-3022. I don't mind sharing it. If you're a dealer and you need help, text me and say, "I heard you on the podcast and I want to know how to own my backyard."
[20:29]
Michael Cirillo: Troy Spring, thank you so much for joining me on the Dealer Playbook. It was great having you.
Troy Spring: Thank you, buddy. I hope my craziness didn't come through too much.
Michael Cirillo: Hey, thanks for listening to the Dealer Playbook Podcast. If you enjoyed tuning in, please subscribe, share, and hit that like button. You can also join us and the DPB community on social media. Check back next week for a new episode. Thanks so much for joining.
