I have just joined dealerelite, and, based on the varying opinions of the benefits of a BDC, decided to share this with all of you rather than just posting my opinions on the different blogs I have read. Enjoy!
http://www.dealerstrong.com/7-bdc-elements-healthy-dealership/
Several years ago, when there was a decision made to create a BDC (or Call Center), my GM took me in a room and said “make me a call center”. We started out with legal pads, pens, and highlighters, and learned as we went along. Today, there are proven methods used to set up and maintain a highly efficient BDC that will create more showroom traffic than you ever imagined.
Over the years, I have seen many a dealership struggle to get the entire team to realize and respect the role and value of a BDC. From being the first impression in most cases that a prospective customer has of the store, to selling the value of doing business with you, establishing rapport, getting the customer through your door, to a smooth t.o. to Sales for a great experience, the BDC accomplishes many tasks.
The most important task of the BDC is to “sell appointments, not cars”. Additionally, many dealerships have the BDC follow up on unsold showroom traffic to thank customers for their visit(s), dig for details, and do their best to turn them into be-backs who eventually purchase from you. The BDC can also ensure high CSI scores for both Sales and Service with their follow up.
The sales department is often considered the lifeblood of the dealership, the service department is the considered the backbone, and the BDC, without question, is the heart of the dealership.
Just like the heart supplies blood to every limb of your body, a great BDC pumps business into every department of the dealership. As a healthy heart requires you to adopt healthy habits, so does your BDC, to function properly. Here are 7 elements of a heart healthy BDC.
Establishing and maintaining success in your BDC requires structure, dedication, and detailed reporting. A great BDC is a constant work in progress, and, once you’ve structured your BDC with training, processes, call guides, email templates, call protocols, it is essential that you have a dedicated BDM (Business Development Manager) to follow through and keep the structure. With the organization of a new BDC, or revamping and training an existing BDC, I have seen show rates increase by double digits as quickly as a week or less.
Comment
Terrific feedback, Steven! What a great opportunity here for idea exchange amongst industry professionals. As a new dE member, I look forward to continued exchange, and entertaining others' views and feedback. Thank you! Have a GREAT Friday!
Oh - re: 800-2000 leads :
A proper lead count includes all sources and these vary in probability of conversion. So how can "one size fit all"? As you pointed-out. It can't.
For example ; Let's say there is a highly trained rep making outbound calls to loyalty customers to use their equity towards a sort-term lease. After 100 calls an appointment leading to a deal is made. To me, that's a split.The salesman got a lay-down gift and someone else did the dirty work for him.
The challenge when answering any question about bdc for me is more difficult than doing it. It is like when the little boy asks his dad where he came from and the answer is an hour of the birds-and-the-bees. The boy listens and say's, "Oh ... Tommy is from Cleveland". If we talk to outsiders (such as those that hire us) we run the risk of being extremely boring so we turn it into a synopsis of bullet-points. This business has an attention span of 140 characters. I handle that need to be entertaining with to one of my avatars. This example is from 2007. Christina was my avatar then. (just like the chat icon you see at the top of this page) I did this meet-and greet salesmen were taught to do word-for-word.
Steven, the dealerships I have worked with generally have had between 800 and 2000 internet leads and phone ups per month, by the way.
Steven, Thanks for your comments. I did read Mr. Stauning's post as well as posts by other industry professionals. I chose not to comment, but rather to post this article because of a couple of reasons. First, I believe that the 7 elements I list are absolutely, without question, necessary for any BDC to be truly successful and to operate efficiently and profitably. Second, I have been fortunate enough to have seen probably at least a half dozen different pay plans, all incentivized of course. I have not seen one of those fail. They were not, however, comparable to what Mr. Stauning proposed. However, I also believe that there are a lot of variables to consider when choosing pay plans for BDC staff. Prime versus sub-prime, lead volume (as you pointed out), duties or responsibilities of the BDC (i.e. showroom visit follow up for be-back traffic, CSI calls, or merely driving traffic to the door and having the sales staff take it from there. For a new car dealer, are there Service BDC duties as well (setting/confirming appointments, CSI calls (which could result in compensation for dealer CSI rankings from the manufacturer), etc. Just as call guides, follow up, etc. needs to be customized for each dealership, so should the pay plans. No one model works for every type of dealership.
Wendy - This is all fine - except - for what is not mentioned. I have experienced successful departments imploding because of bad pay-plans. Steve Stauning wrote about this and I tested the numbers and was somewhat surprised to find that they generally worked better for the rep than with a base pay-except with low-lead-volume high-line where some fine-tuning is needed.
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