BDC, Call Center...BS...Call It What It Is!
COMMUNICATION!
I just got through reading “Is the dealership sales call center obsolete?”on autonews.com. I got the article from Andy Warner on twitter. This article highlights dealers that have built, dismantled and maintain BDC’s and discusses the various pro’s and con’s of each but fails to get the real point.
That said I am going to try and land the plane on this topic and let’s discuss where you think I’m missing it or what we can do to make it better. The reality is that we have a real problem here that needs to be addressed for the retail auto industry as a whole.
I have beaten the lead conversion drum for years to the point many think I am obsessed with it.
The fact is that I am but over the last 2 years I have come to realize that… “Lead Conversion isn’t enough”, we are going to have to get beyond lead conversion to the visit to excel and therein lies our problem.
When we get a lead or a call there are a few inherent things we know we have to do.
- Answer the question
- Give the price
- Sell the appointment
But if you’ve answered the prospects questions and you’ve given them the price…why do they need you? When you get a prospect on the phone how do you get their contact information and make sure it is accurate, and then convince them to visit the store? These challenges are not new to the industry; they aren’t even unique to the automotive industry. The fact is all business working to generate leads face these same challenges.
The answer… VALUE!
To get something from someone, a lead, contact information, a visit you have to give them something of value in return.
Value Drivers
- Time – this is the number one reason the prospect is on the net to begin with, it would stand to reason if you can save them time in the shopping & buying process you will have an advantage (think Progressive.com). Here I suggest a 90 min test drive and purchase guarantee.
- Information – the primary reason a prospect contacts the dealership is for information, about the car, about their trade, about financing and of course the price Joe Webb talks about these various types of appointments in a very good blog post “The Four Appointments Car Dealers Should Set” but what is the VALUE the customer gets for setting the appointment? This is where most sales people miss it and is your opportunity to place yourself above the competition with an online brochure about the car they are buying with information on why they should buy from your dealership and a video introduction from you with a walk around of the car. You see the dealership and the YOU are the only things they can’t get somewhere else. This is the reason we developed infoMagnet our online brochure tied to our incentive based behavioral marketing app. When you offer this value 98% of the time you will get good contact information from a phone call to your dealership and over 60% of these customers will show up at your store with a 80% plus closing ratio.
- Convenience – we all pay more for convenience, we do business everyday based on what is most convenient for us. Make it more convenient for your prospect to buy from you. Deliver the car to their place of business let them drive it while you take their car and get the appraisal. I was doing this back in the 80’s and ironically I would sell at least 2 other cars to people in that office with in as many months after I did this for a prospect. My closing ratio…100%, I never lost a customer I delivered the car to.
Whether you are in the BDC or you are a salesperson on the floor you have to be able to communicate the value to the customer for giving their contact information, showing up at the store and buying from you. So you see it doesn’t matter if you have a BDC Department or Your sales staff handles the leads as they come in, they will all have to communicate value to get the customer.
The question is who do you want to train? That’s all.
So tell me, where am I missing this, if at all? What can we improve or add to TIME, INFORMATON & CONVIENENCE?
Comment
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Comment by Doug Davis on May 29, 2013 at 11:50pm
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"parasitic vendors capitalize on for their own profits."
Keith, there are a lot of snake oil salesmen taking advantage of dealerships. Twenty years ago, it was sales systems. Now, most are internet related.
Vendors might have an excellent product, but dealerships won't implement it. It is a constant theme on this thread.
I believe having a strong group of ISMs with a BDC for long term follow-up is the answer. Others feel they can do it with a good BDC. We are probably both right. Either way might work if you have good troops and managers.
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Comment by Mathew Koenig on May 29, 2013 at 4:45pm
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I guess I should have said it like this:
If we truly change our thoughts, and what is important in serving our consumers then we will change consumer experience for the better which of course will change the reality of the experience and thus change perception :-)
We are singing from the same hymn book just different translations.
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Comment by Keith Shetterly on May 29, 2013 at 4:41pm
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I guarantee that, in sales, perception is reality on the customer's side. Changing our thinking, if it doesn't lead to a change in customer's perception, is something that might be good for us but will not change sales.
We are locked inside a protective franchise system that forces the customer to buy from us on our terms. That's what dealer's bought and paid for, and it's a system that has thankfully been a great success story for the USA. However, it led to abuses of customers that still linger on in PERCEPTION, and that parasitic vendors capitalize on for their own profits.
So, it's change our thinking in order to yield a different customer perception. Here's a way to start: If you had to fight for your customer against a competitor just a desk away from you, what would you do? How would you think about your customer and what perception would you want?
Well, welcome to the Internet. It IS that desk. If some of us didn't see it that way, well, we do NOW.
Thanks!
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No offense intended but I used to work for someone who said perception is reality and frankly, its not about changing perception.
We need to change our thinking, then change the reality of the consumer experience.
If its good, its good. You dont need to worry about perception.
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Comment by Stan Sher on May 29, 2013 at 3:39pm
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Might I suggest making the BDC the GRC (Guest Relations Center) and making Sales People the Product Specialist. Change the perception and provide a better experience to the customer.
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Comment by MANNY LUNA on May 29, 2013 at 3:14pm
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Tom Gorham BINGO! HOME RUN! GOOOOOOOOOOOAL!
Volume may be the future but customer service, relationship building, and reputation is the name of the game.
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My view points are thoroughly displayed in a webinar that I will be performing tomorrow for Dealers Edge. I am happy that this blog exists because I will be referencing this blog in my presentation. Here is the link to my session tomorrow http://store.dealersedge.com/all-dealersedge-webinars/upcoming-live... Thank you Larry.
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Comment by Tom Gorham on May 29, 2013 at 2:35pm
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Timothy, I agree that the BDC is not dead. In fact, in the article Rick Case makes a great case for the BDC. Volume may be the future but customer service, relationship building, and reputation is the name of the game.
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Comment by Timothy Lovrinic on May 29, 2013 at 2:11pm
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I agree with Doug Davis. Volume is the future of the auto sales professional.
BDC isn't dead at all. It is changing. Pre-Approval, without the disclosure of highly sensitive personal information, is the change. And it all takes place quietly in the home on the internet. The BDC can now get the customer far far down the funnel, and then the sales professionals can get to a high level of closure.
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The internet has ruined the ability to make good profit because the customer doesn’t want to allow the business to make money. We are entering the age of volume.
Only recently has "profit" become a four letter word and corporations "evil". But not being able to "make money", definately not my experience. The internet levels the playing field and your ability to draw people from a distance. If you know what you are doing, you can make good grosses and increase volume.
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