Dealers spend millions attracting customers, yet one of the biggest profit leaks still happens over the phone. Stephane Ferri, CEO of Car Wars, joins us on today’s episode of Inside Automotive to discuss why better call handling, stronger coaching, and smarter use of AI can turn more conversations into appointments, and more appointments into revenue.
Every year, Car Wars conducts a White Paper Report analyzing dealership call data. The report includes insights from more than 900 million minutes of calls annually across its dealer network. According to Ferri, the trends have remained consistent over the last three years, revealing noteworthy opportunities for dealers to improve call performance.
One of the biggest areas of opportunity is staffing. Ferri said dealership schedules often do not align with consumer behavior, creating gaps when customers are most likely to call. Since customers are not always contacting dealerships during traditional business hours when every department is fully staffed, those missed calls leave potential revenue opportunities unanswered.
For dealers, Ferri said improving phone performance starts with recognizing that inbound calls are not simply customer inquiries. They are often high-intent opportunities from shoppers ready to take the next step.
Preventing dealership calls from spam
As dealerships increase outbound communication, Ferri warns that calling practices can directly impact whether customers answer their phones.
“The reason spam is so big right now is because if you sound like spam, the carriers are going to dictate you're spam.”
As a former dealer, Ferri argues that dealerships need to rethink outdated calling habits, including repeatedly calling customers without leaving a message or clearly explaining the reason for the outreach.
Instead, he encourages dealers to leave detailed voicemails, avoid repeated calls in a short period of time, and communicate their intentions clearly.
With carriers and regulators like the FCC paying closer attention to communication patterns, Ferri said dealerships need to ensure their outreach reflects professional customer engagement. He said, “If it looks like a duck, and quacks like a duck. It’s a duck… don’t be a duck.”
While many dealerships continue to focus on generating more leads, Ferri believes the bigger opportunity may be improving how existing opportunities are handled.
According to Car Wars data, dealerships are still missing a significant percentage of incoming calls. Ferri said connection rates across dealerships average between 63% and 65%, meaning a large number of customers are not reaching an employee.
"Own the phone."
Those missed connections represent lost opportunities from customers who have already taken the initiative to contact the dealership.
Rather than immediately increasing advertising spend, Ferri encourages dealers to first examine their current processes and determine how effectively they are converting existing traffic.
Ferri contends that a customer who calls a dealership is often further along in the buying or service journey than someone simply browsing online. Neglecting to answer that call can mean losing a customer to a competitor.
AI should support dealer teams
As dealerships explore conversational AI solutions, Ferri believes the technology should be used as a tool to strengthen employees rather than replace them. He said that AI can help dealerships manage routine interactions, schedule appointments, route calls, and improve efficiency. However, he cautions that dealerships shouldn’t overlook the value of human interaction.
The customer experience still depends on trust, authenticity, and relationships, especially when customers are making major purchases or having expensive vehicles serviced. Ferri compared the approach to that of businesses like Chick-fil-A, which invested heavily in employees and customer interactions rather than relying solely on automation.
For dealerships, the goal should be finding the right balance between technology and personal engagement.
Further, the service department represents another major opportunity for dealerships to improve communication.
According to Ferri, service advisors often have one of the most challenging jobs in the dealership because they are balancing customers in front of them with incoming calls and appointment requests.
Car Wars data found that the average service scheduling call in 2025 took approximately four and a half minutes from initial pickup to completed appointment. Ferri said conversational AI tools can help reduce the time spent on routine scheduling tasks, allowing advisors to focus on customers who need personal attention.
Rather than replacing service employees, AI can help handle repetitive tasks while improving the overall customer experience.
Measuring performance via call coaching
Ferri also highlighted the importance of understanding what happens during dealership calls, not just tracking how many calls come in.
Through its CRISP framework, Car Wars evaluates key parts of the customer conversation, including whether employees connect with customers, understand their requests, invite them into the dealership, set appointments, and continue follow-up efforts.
Ferri said dealerships often know how much traffic they generate but lack visibility into how effectively employees manage those opportunities.
Car Wars also uses mystery shopping and voice recognition technology to evaluate dealership communication. The process helps identify whether employees are:
- Introducing themselves properly
- Answering customer questions
- Capturing contact information
- Setting appointments
- Following up appropriately
For dealers, Ferri said the goal is not simply identifying problems. It is using specific data to coach employees and improve performance.
Evaluate the experience provided
Ferri said one of the biggest challenges facing dealerships is that many leaders do not experience their own customer journey firsthand.
He encourages dealers to shop their own stores by calling, texting, and submitting online inquiries to understand exactly how customers are being treated.
Many dealership leaders assume their processes are working because employees report positive results. However, testing the experience directly can reveal missed opportunities that are otherwise difficult to identify.
Ultimately, Ferri believes dealerships don’t always need more traffic, they need to maximize the opportunities already coming through their doors and phones.
By improving staffing strategies, training employees, using AI appropriately, and taking ownership of the phone experience, dealers can capture more customers and improve both sales and service performance.
