Compliance is the Green Lantern of Automotive with Sherryl Nens of ComplyAuto

Michael Cirillo: 0:00Hey, guys in 1995

‍Unknown: 0:12

This is Auto Collabs

Michael Cirillo: 0:15

excited that in here called us I have here. My dad excitedly calls the family out to the driveway. East your eyes upon this moment points out what looks like the Breaking Bad meth RV.

Kyle Mountsier: 0:30

Yeah, it's National Lampoon's

Paul J Daly: 0:33

now did your mother. Did your mother get called out with you? Or was she out there already? Yeah,

Michael Cirillo: 0:37

no, she she got called out and we're all like why? And he's like, and we're like, what is it?

Paul J Daly: 0:43

Do you have to get in that thing?

Michael Cirillo: 0:47

I've never been rained on so much from the inside of a vehicle. Because I was in that RV.

Paul J Daly: 0:55

Got it? What do you got to deal on? It is it's funny, my wife and I, my wife and I often talked your I mean, probably say four years ago and before we were like, one day we're gonna take an RV trip. We're gonna take the trip, right? We're gonna get the kids are getting great RV. We're gonna drive across the country. And just like, last week, when we were away for anniversary, we were kinda like, hey, memories, talk about that. Kind of like, you still want to do that. Like one of us was like, oh, no, I was like, good, because I don't want to do that anymore. either.

Michael Cirillo: 1:32

You're curious about whether or not to RVing and enjoy it. Just go spend a week at a Motel Six. is

Paul J Daly: 1:39

not like that. It really depends on the RV in your dad's RV. Yeah, but like, tour bus level RV, amen. But we we why are we talking about this? Kyle? You know why we're talking? Why

Kyle Mountsier: 1:50

are we talking about this? It's because our guest on the pod today has an entire website dedicated to her and her family's RV makeover and adventure and road trip and all of that. And somehow we're gonna figure out how that ties with the fact that she now works for comply auto a compliance arm of the automotive industry that is helping dealers will do your work. And I get to introduce you to share on men's with compliance auto. So let's just get to it. Hope you enjoy the conversation. We, I'm excited to have you here. Because just a few weeks ago, we got to hang out and meet you at at ASOTU CON. And, you know, we had been on a couple of calls before that. And it's always nice to actually like meet someone in person and get that interaction of like, oh, that's who you are not on a zoom call. So now I get to have that context. And instead of just being in zoom so much better now.

Sherryl Nens: 2:49

Yeah, I know. It's my first ASOTU CON and I don't want to say I was doubtful, but like I just hadn't been and it was a little skeptical. But it was not just another automotive convention and I really liked it. So I like what you guys are doing and and you're kind of preaching what I've always preached about automotive is like, we're so much more than that.

Paul J Daly: 3:11

I love it. Yeah, that's like you just fill this all up.

Kyle Mountsier: 3:14

Now you got all our juices, and we're all just fired up. We're gonna get on a mission mission chat, you know? Oh, where's

Sherryl Nens: 3:21

the rock? I got wills books here. And I've been reading that so Yes, awesome.

Kyle Mountsier: 3:26

Good. Yeah. Okay, so you know, we ask a couple questions before people come on the show and every once in a while we get super excited because of he volume of automotive interaction that you've had in your life. Take us back to like, the very first time you were like, oh, automotive may be a place for me because I think it was at a pretty young age right?

Sherryl Nens: 3:56

Well it was but it's funny like I was kind of the maybe I'm a Debbie Downer downer all along. Like I wasn't positive of it. But I think like I mean you asked when I really got started on a modem and it may have been when I was like seven years old. My dad never had boys never wanted boys he thought girls would be much easier to raise but at the same time want to make sure that we did also had girls he would make sure that like we got into the things that he wanted and that meant cars and guns. So

Paul J Daly: 4:31

what state was this New

Sherryl Nens: 4:33

Mexico and West Texas

Unknown: 4:35

All right. Wait is

Kyle Mountsier: 4:36

to understand Shoe Fits All right, keep going.

Sherryl Nens: 4:39

Yeah, well, I got like my first like, creeper, you know, like that slides underneath the car? Yeah, I was like seven. And then I think at 13 I was gifted what every girl wants on her 13th birthday was like an oil wrench. Every milestone like, like you know when you're driving and stuff and coming Even those striving years, I couldn't do anything before I could like, prove myself and put something together. And one day, my dear father, like, he told me, he was like, you know, when you were born, your grandfather bought you. And 19 like 65 Mustang. And this is when I was born in like 77. And we were going to remodel it. And we were going through my grandmother's garage, and he's like, and here's the steering wheel. I'm like, Where's the car? And he was like, Oh, wow, he sold it at one point, but we'll so my father came and he had it all planned out. He bought me a 1979 Volvo mustard yellow stationwagon, and it's a lot different than driving into the driveway, and so he promised me like, Hey, you change the color, but we're going to do this right. And we had to take apart that entire car and put it back together and label it and like, so. Wow. Yeah.

Paul J Daly: 6:00

We did. Did you meet? Did you meet Patrice Banks at asoto calm

Sherryl Nens: 6:04

and I've never heard of her and I was so excited. I was like, because my best girlfriend at NADA Cameron Wilson she idea. So bad of me. I'm so sorry. Stop ringing. Someone good.

Paul J Daly: 6:18

Happens. It's live TV. It is but it isn't.

Sherryl Nens: 6:23

My voice does not stop ringing. Just a second. I gotta like hang it up times. I apologize. But yeah,

Michael Cirillo: 6:32

this happens I usually throw my laptop away and go buy a new one. You're handling up much better than I do.

Sherryl Nens: 6:39

I put Do Not Disturb on everything. But Google always finds a way. Oh, you only did it on chat. And I could go voice Oh, well. Knowing that MITRE thanks and she was very inspiring. Like my best girlfriend i We got an automotive about the same time and we've had like similar ideas. Like if only there was someone out there and part of the women and I am like, so proud of Patrice that she did it. So that's amazing.

Kyle Mountsier: 7:01

So cool.

Paul J Daly: 7:02

I'm glad I'm glad that you met. I mean, it feels like so continue the story because we have to get from we get here from mustard yellow Volvo, that you're disassembling with your dad to compliance and cookieless, right, which is like what you're really passionate about now. And those two things may seem very far apart. So paint the line sure

Michael Cirillo: 7:20

we get the passthrough of, in my opinion, one of the greatest CEOs of Ford Motor Company to Yeah, yeah, absolutely. It stopped there

Paul J Daly: 7:28

too. And the fact that you lived in an RV with your family and YouTubed about it, there's so much to cover so

Sherryl Nens: 7:36

I was at Jiffy Lube and I kind of work my way up and I was running the store before I like left and through college I worked all through college there and so you know, like you're I was like literally 18 years old and like the sound naive I was like people would say like, Oh, there's the girl that Daisy Dukes I didn't know what Daisy Dukes was in Mexico I thought I wore shorts with my like Jiffy Lube polo and but I had like a team of like 10 tax like I had a protects and lower tax like doing oil changes and they would always make me go out and sell and upsell like the air filters and things and you know, total for box like oil change for like their transmission and stuff. So it was fine. But then I actually had a close besser, who knew I worked at Jiffy Lube and Ford Motor Company was coming as a career fair and and he was like, you really need to go interview with them. I've set up like one of the students that was there are people that was there as his former student from I went to the Harvard of the Rio Grande University in New Mexico. Go Lobos so little little school in New Mexico. And he he new miles. And he set up an interview with me for miles at Ford Motor Company. And I was like, I don't know about this. I don't know about automotive and like, that's what I do with my dad and, and I got selected, like to go up to the assessment center. Back in the day, they had an assessment center, which is really grueling. They kind of put you through like, a full day interview, like where you would have like, clean out your inbox. And then they'd have like an angry customer like it was somebody from Ford come in and like be angry and like, how would you handle that? And then you had to like do a mock, like wholesale to an angry dealer. And so they would put you in those situations. And then I passed assessment and I got an internship and I worked for Ford for 17 years and colluding with Alan Malala on dealer relations. So I got to meet a lot of the top execs But Alan like he was just I mean, he was one of those inspiring leaders that I mean he knew everyone's name he treated you all the same. He was just an amazing human and so I very much missed him like when he was leaving I was like Alec Take me with you.

Michael Cirillo: 9:46

So were you there through the Allen yes wait oh nine oh yeah, yeah,

Sherryl Nens: 9:52

yeah. And then that like watching him like overall accompany like, if you've read his book, he implemented the business The BPR business plan review. And so you know that I was kind of in the field at that time. And then I got up and I was watch the Ford Fiesta. And I'll never forget I had a

Kyle Mountsier: 10:12

car holy cow. Speaking of yellow Volvo, sorry.

Paul J Daly: 10:18

To hear it, I just in my head, I hear

Sherryl Nens: 10:22

my husband calls me the small car killer because I launched the 4g SMB. So neither one

Paul J Daly: 10:31

is ahead of its time.

Sherryl Nens: 10:33

This time, but, but I had a leader when I was on the Fiesta, who will go remain nameless. And you know, I read Allen's book and like, we had a situation on how long like our day supply were at like a two day to supply on Fiesta and how long it took to get those cars where they were like to, to America and to our consumers was too long. And so you know, you were supposed to put red, yellow or green and like his book is like, if it's red, it's red. We all work on it. And I put red. And I just got like, yelled at and talked down to this and like never read on it. BPR. And I was like, this goes against the whole process.

Paul J Daly: 11:13

That the point of the thing.

Sherryl Nens: 11:15

Yeah, yeah. So that was interesting time. But not

Michael Cirillo: 11:19

he kind of wanted it correct me if I'm wrong. But Alan, want it. You know, people were not putting red because they wanted to seem impressive. But he was the kind of leader that actually wanted. Yeah, like the fakeness he wanted, right?

Sherryl Nens: 11:34

Let's bring up those issues. And then we'll work on him like and so I was, I don't know, I just felt very disingenuous to me. So now fast forward, my husband retired from Ford and, and so we kind of moved out of Detroit. And so I went, went to another company that did guns, so the cars and guns

Kyle Mountsier: 11:54

covered all the bases

Paul J Daly: 11:57

must have been beaming, he was beaming with pride.

Sherryl Nens: 12:01

Yeah, he's like, You got me on my super duties I needed now I can get all the scope. So then we had like an existential crisis and decided to pack up and just like see the world and spend time with our kids. Like, you know, why wait for Sunday, let's make that today. And we named it after our kids like VRV was like bright, they're brighten and Daisy. And so we said bright days ahead, because, you know, bad times. There's always bright days ahead. So we love it. And then I ran into an old dealer friend of mine and said, like, hey, we have this company called comply auto and I met the CEO, Chris Cleveland. And that was a step up. And I was really passionate about like, what he was doing. He was helping dealers, you know, try to simplify, like a very complex problem. And he was doing it for like the right reasons. And I just loved that. And so that's how I got involved to comply. Oh,

Kyle Mountsier: 13:00

yeah. So how do you transfer this passion of like cars and trucks and Jiffy Lube and gun, you know, guns to like, compliance, which is a very, like, legal driven a little bit of glasses on the nose?

Sherryl Nens: 13:15

Like, nerd Have you met? Fine? Yeah.

Kyle Mountsier: 13:19

Yeah. Like, where does that where do you how do you transfer the vibe of like, You're what you've done what you've always known the kid that was getting under the car with the, with the oil wrench into this thing that is like riddled with, you know, government compliance and regulation and, and, you know, fear on the dealer, all of these things that that almost feel disjunct from that passion? How have you transferred that?

Sherryl Nens: 13:48

Right? Well, it's a great question. And I think like my background, because I worked with dealers for so long. And that's actually how I got the job. Working with like, senior leadership, it was on dealer relations was that I was kind of the voice of the dealer, and I really got to know some really great dealers in my time. That took time to even mentor me and like, how about you come off the road for Ford like and work in the back end for two weeks? And so I really got to know their businesses and them and what they did in their communities. And so, you know, compliance is, you know, stressful or, or, you know, you you just have to kind of get to know it and as I learned a lot about the regs, I'm like, this is so important because I liken it to these are my words, not completely auto words, but you know, I liken it to it's kind of the unsung hero like, I don't know like superheroes very well, but like Green Lantern or Ant Man, you know, they're not Superman or spider man. But

Paul J Daly: 14:41

Green Lantern definitely is an unsung hero. Man has gotten his day but Green Lantern, like all the kids are like who

Sherryl Nens: 14:48

know exactly, but what's your superpower? What? Exactly. That's what compliance does though is it really protects that bottom line that hard earned dollar for the dealers. So, you know, like automotive, you know, they have some of the best jobs in America, like, it's kind of a secret, like they do so much for the communities, and all that can be protected by, you know, a couple rules that get made are arbitrary, or some of them are very good, like the safeguards rule, like don't do this, because the government tells you to do it, do it, because there's some bad actors out there that want your data and like, you know, stay up at night trying to steal stuff. And so that's why you're doing some of these things is really to protect your business interest.

Kyle Mountsier: 15:29

So yeah, you know, it's interesting because especially in the tech space, if you're aware of the tech space, you've got these two kind of like, massive compliance arms when it comes to data, Consumer Policy, all that type of stuff, which is, you know, your sock two, and then your ISO. And, and they have, like, really dug dug their fingers in it with getting tech companies in particular, very compliant. But in auto, we don't really have that, like regulatory balance for the massive amounts of data that we have in the DMS, the CRM, or the website, and the traffic that we are that we have kind of coming through the walls of our data ecosystem. You know, there's there's some things that can be done in non centralized like the spaces where tech can handle the problem, right, with website cookie banners or things like that, that's, that's almost plug and play. But there's a lot there's a lot more when it comes to like, oh, papers sitting around computers, not logged in, not locked, like, how how do you balance this, like comply auto being and compliance being both a tech interface but also an activity? Right. Dealer personnel and embarking every single day?

Sherryl Nens: 16:56

Yeah, well, that that's something that we have done is like we've really tried to automate like so a lot of that back end. But you know, it is confusing. So we've put a lot of time and making sure you have that personal connection to so like every dealer is assigned to CSM and, and they really get to know their CSM, but we have to have those quarterly check ins with the customer sometimes, like I think dealers are like, Oh, I have all these rules that I have to comply with. I'm done. Like, I don't need to do this for a while. And like, that's not how a lot of the rules are written is like, you have to do those intermittent things like either it's your risk assessment, which we were talking about is like either physical or technical. Your fiscal one is you have to go around and make sure there's no papers laying around the coffee machine and, and like you shred right and, and technical is, I mean, we could get into a whole podcast on that. But that's a lot of your cybersecurity. And like if you need a pen test or a vulnerability scanner, or phishing, like I love phishing tests, like such a cool thing, send out fake emails to my employees to see if they'll click on a free Starbucks gift card. Like boys and girls, if you're listening at home, there is no free Starbucks ever doesn't

Paul J Daly: 18:00

exist? Well, that's the hard part, though. Because there are literally companies like legit companies that have built award programs for their employees. Yes, that reward them for behaviors with free Starbucks gift cards that do all that is true, yes, but which is, which is I think why the Fisher's like put that lore on there. But I haven't actually ever seen or been a part. It's

Michael Cirillo: 18:22

actually the bandwidth. It's kind of freaky, when you realize like it when you go through this exercise of seeing where your information ends up, how many people what they can extract from your information. I remember, a few years ago, we use my work email address, as as kind of the entry point to like, who has access to my info. And it was shocking to me how many platforms made the connection between me and my wife and my sister in laws and my in laws, and like just how your information can creep out there. And then you think of the sheer volume of personal information that flows through a dealerships software? Well,

Sherryl Nens: 19:07

they are there under the safeguards is there considered like a non banking financial institution, because think of like, they know everything about you when you go buy a car, right? So they have a lot of data. And it really starts with the website, like when you go on the website, and like, you know, there's so many great marketing tools out there, like how do you acquire a customer? How do you get that customer? And it can help on your website to put these tools in, like chat modules. But it starts at that website, like what is your website doing? And what information is it collecting? And are you giving the consumer that consent and so that goes into another rule, which is privacy. And safeguards is one rule. It's kind of cybersecurity, I call it the Fort Knox rule like anything data, you have you keep it secure. And then privacy is like kind of what you're talking about, Michael is what information is out there on me and if I request for you to stop sharing that information, and so I think that's some thing that dealers need to look at is like, hey, on your websites, are you giving cookie consent? Do you have that little pop up? And are you actually giving real cookie consent? Some of them? would call them dark patterns, Cookie banners, because they don't have like a decline button. They don't really give you like conception and option. Yeah. And then how, you know, how do they fire in the back end? Like, did it really like stop some of those marketing? Marketing cookies? And I talked about cookies like not to get too technical, but um, everything like pixels and fingerprinting, all that traceable information? And then are you protecting her to have those disclosures and say, like, hey, this chat module, we're recording it. I mean, that's technically like eavesdropping. And so we're seeing a rise in litigation with dealers that aren't protected with a cookie banner that they're getting wiretapping claims. And it's like, this is an old 1960s rule, I just, I just want to help them buy a car. So little things that can help protect,

Michael Cirillo: 20:57

do you think to like, even if you have the banner that cookie consent banner, and there's an opt in and and a decline? Do you do you think as of today, I'm sure there will be more education in the future, and the online user will become? Hopefully more. I'm giving everybody the benefit of the doubt here. I don't think this is going to happen. But I was gonna say as we become more sophisticated. Do we have to change the language of like, here's where I'm going. For the for the average, internet surfer? Do they even know what cookie means? That like, at this point, are we even there with them yet? I know if I say if I went to my Great Uncle Joe and said, Hey, you have to give your good cookie consent. He's going to expect cookies to show up in the mail.

Paul J Daly: 21:53

My wife wouldn't expect cookies, but she wouldn't know what she was. She'd be like I say it all the time. I don't know what it is.

Michael Cirillo: 21:59

Yeah, I'm kind of my point is you see it, it gets in your way. So you're just again, whatever and you just click to get rid of it? Do we have to increase our language, enhance our language so that the consumer really actually knows what they're clicking on? Well,

Sherryl Nens: 22:13

I think privacy as a whole, like, there's a lot of education around it. Like when you have Google or AI or Amazon is coming around, but a little bit of your language, I think we need to educate the dealers. But interestingly enough, I mean, we we helped manage over 10,000 dealers website, so we track that, only about 40% actually do that decline. And it's the baby boomers who tend to decline more than the Gen Z are millennials, you know, and so that's probably my goal, or you're getting is like some expected, some don't sell. But it's interesting that baby boomers tend to exercise like the privacy rights more.

Kyle Mountsier: 22:49

Because because the baby boomers are afraid of like what you're doing with that data, the millennials and the Gen Zers. know everybody already has it anyway. So I might as well get better at

Michael Cirillo: 22:58

lived through the Cuban Missile Crisis. anybody anything?

Sherryl Nens: 23:04

Wiretapping laws? Yeah. Guys, I've really enjoyed talking with you guys.

Michael Cirillo: 23:14

I mean, it really just opens our view of how much we do need to be thinking about this stuff. And I don't want to say this is the boring stuff. But for the sake of saying, we're not talking about making more money, we're actually talking about keeping more money, because you're saving on litigation and all of these sorts of things. It's often in these conversations, where the biggest protections and rewards happen. And I know nobody ever wants to talk about being safe, because safe doesn't sound fun. But at the end of safe is safety. And that's what we all desire more than anything. So, man, this has been so much fun. We're so glad that you could join us Cheryl bank. Thanks for joining us here on Auto Collabs today.

Sherryl Nens: 23:53

No, well, thank you. You guys. Have a great day.

Paul J Daly: 24:00

All right. I was nervous in the beginning of that, like how are we going to get from cars? Guns?

Michael Cirillo: 24:07

Do you not know Kyle is the king of segways. Is he?

Paul J Daly: 24:11

I mean, I have a battle? No, I

Kyle Mountsier: 24:12

think Paul is actually the king of segway. My I'm the I'm the guest segway guy. No, I

Paul J Daly: 24:17

think we're good sparring partners, right, like, I think that's why we get good. I had a really good Segway lined up for today's show. And then the second story changed. Oh, because there was a story about IKEA and then there was a story about Kia and you can't spell like Kia that. Either way, I love this. This

Michael Cirillo: 24:38

segues I'm like speaking of meatloaf.

Paul J Daly: 24:42

But let's get back to the point here the conversation was shared on the one that got us off track, I I can't. I feel like what I want to talk about is all the interesting things prior to like the fact that she made her dad so proud of all the company all the super duties I wanted and now like that they come from the gods and now get back to the cars. But all of that around, I think what it really highlights is like, there's a really well experience sharp individuals looking at the compliance challenges we have. And even though like you said, kind of like it seems like the kind of thing like

Kyle Mountsier: 25:19

your little legal and maybe dry at some level, like the passion behind it is driven by people that deeply care about the retail auto industry. And the important that's, that's something that I think we're we desire to expose in so many places. It's like, oh, the person behind compliance or chat or fixed ops, or whatever it may be, is a, like, well rounded person that just cares deeply about this in this moment. Right. And that's really exciting.

Michael Cirillo: 25:54

Yeah, it's like, this is really a bad one. But it's how it's being internalized in my brain. It's like, nobody has fun going to Home Depot to buy a washing machine. But have you ever washed clothes by hand? I

Unknown: 26:07

don't know. I kind of

Paul J Daly: 26:09

I, I'd like appliance shopping. Honestly. Wow,

Michael Cirillo: 26:13

we're getting old.

Paul J Daly: 26:19

Sounds like good Saturday afternoon. Features and Benefits and deals. Nobody wants it to Oh, my point for drama. 6.3 getting this thing get on this thing

Michael Cirillo: 26:31

gets a plumber to fix the dishwasher. Because you're like really white, I have to break this first place. But that's true. You know, you don't want to wash dishes by hand. And that's kind of like the compliance piece for me. It's like, okay, maybe it's not as fun as talking about more leads for all the leads zombies out there. But, but, you know, it's not fun. getting sued

Paul J Daly: 26:54

or prosecuted kind of puts a damper on your day. Well, look, we hope we put the opposite of a damper on your day through whatever it is that we do here for a living. On behalf of Kyle Mountsier, Michael Cirillo, and myself, thank you so much for listening to Auto Collabs.

Unknown: 27:11

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