Service-only BDC Question
I was wondering if anyone could let me know what pay plan works best for a service-only centralized BDC.
It is for a multi-location, multiple brand group. The Staff handle appointment reminders, outstanding recalls reminders, special order parts notifications and new sales customers transitioning into service. We currently have 5 brands, with 2 new coming on board in 2 months and 2 more early next year.
Thanks, any suggestions are greatly appreciated.
Kendall
Replies to This Discussion
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Permalink Reply by Bobby Compton on
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What's the structure of your department, appointment setters, prospectors, sales, etc?
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Permalink Reply by Kendall Williams on
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These are to only Service customers.
2 full-time BDC reps.
Our department goal is solely for service retentions - ie. reminders, recalls, service marketing campaigns, end of warranty contacts etc
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Are you utilizing this center for up sale of warranties, or other service products?
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We are currently not at the moment as we are still in the development stages. 2 brands are in full swing, while we are currently building on the other brands for our expansion.
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Permalink Reply by Leonard Buchholz on
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There are several different pay plans you can build. The elements are hourly, pay per call, pay per booked appointment, pay per hours sold, bonus per appointment booked, bonus per product sold, bonus per hour sold or straight commission.
Most plans have an element of hourly/pay per call or pay per appointment. The most aggressive plans are those that are straight commission plus bonus per product/hour sold.
Most stores have success with a balanced plan that has an hourly component/per per appointment booked/bonus per product or hour sold. Those most successful keep the hourly at 40-60% of total compensation with the rest made up of appointment sold, bonuses on products sold, performance bonus on daily scheduling, etc.
Based on your area, a reasonable hourly rate might be $10.00 (you need to determine what works best in your area). If that is the case and you wanted to keep the formula consistent then the BDC coordinator would top out around $17.00 per hour if they met bonus and performance goals.
Which means you would need to figure a per appointment sale amount.
You did not say if they were handling all incoming service calls and that would be a deciding factor. If they are, then you would need to know how many appointments they need to schedule per day for each advisor.
Using industry guides, the average advisor can be scheduled for 15 cars per day. For two advisors, that would be 30 appointments available each day. Based on those numbers each confirmed and scheduled appointment would be worth about $2.00. Now, it's how do I bring in performance and bonuses without going broke?
If you break the per appointment scheduled down and pay a $1.25 per appointment, you could then escalate the amount as each level of daily schedule is filled. For example, when the schedule is 75% filled, then there is an additional .25 per appointment paid, 85% another .25, 95% another .25 and when they fill 100% of the schedule then it's a plus bonus on top of that.
Of course, there are two things they must do. Take care of the Customer and fill the schedule based on your time available not on the availability of the Customer. If they are doing it right, they are giving the Customer alternate choices and filling the holes in the schedule based on the the needs of the shop. When done properly the Customer feels taken care of and the shop schedule is filled and balanced.
This is just one example of a pay plan, and may not work for you. The good news is that you can build a plan based on what you are trying to accomplish in regards to shop productivity/CSI and overall Profitability using the elements of a pay plan.
And, if the plan is not working, make changes.
Hope this helps.
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Wow thanks Leonard for the detailed response. You have many great ideas and I appreciate you taking the time to responsed!
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