Working with many diverse automotive dealers has allowed us to gain a lot of insight in the BDC Department. Our dealer strategists have been able to develop training programs to increase performance, production, and improve processes inside of dealership BDC Departments.
This is usually accomplished by giving an assessment to be able to identify root cause issues and then building integration steps to achieve the results desired. Sort of the Crawl, Walk, and Run mentality.
If you are looking at your BDC department and thinking of ways to improve, there are few things you should know as you move your plan forward. There are four important questions to ask yourself before making a decision.
There is a lot to unpack here, but mainly you should looking at the big picture items like cost, facility setup, staff skillset, and your general number of leads. The standard amount of leads in most environments is about 150 per agent. Let's briefly look at these three BDC structures.
Traditional BDC:
This BDC method is typically where a manager supervises dealership agents, and the agents are handling the leads at the beginning of the buying cycle.
Hybrid BDC:
This is a mix of the Traditional and Cradle-to-Grave structures where an agent takes the customer from lead generation all the way through to the purchase.
Cradle-to-Grave BDC:
This structure enlists salespeople to handle the lead when it comes into the dealership. Once there, the sale to the customer once they arrive.
We've seen many different dealerships use one or more of these BDC structures with both great success and possible frustration, which is why you interpret your need carefully!
You will see that the "Set, Show, and Sold" process varies at different times of the year, and it depends on the buying cycle of your customers. For example, January through March sees a higher pre-owned interest. It is important that your team leverages the tools they have to maximize the results during these different periods.
Remember, there are standard goals for both internet and phone leads that come in.
Here is a practical example of the goals using internet leads:
Let's say you have 100 Internet Leads, and those 100 leads equals 35 set appointments. Of those 35 appointments, 23 of them show up to the dealership. Out of the 23 that show up, we expect about 15 of them to buy a vehicle.
Now let's use the same example but insert phone leads instead:
You have 100 Phone Leads, and those 100 leads equals 50 set appointments. Out of the 50, only 40 of those appointments show up to the dealership. Of the 40 that show up, we expect about 24 to buy a vehicle.
Now we'll turn to two basic tools that your BDC personnel need in order to succeed. Tools can be many different things in the BDC world, so it is important to match the tool to your customer base. Every tool needs to work together similar to the components of an engine that gives you the most power without burning excess energy.
Remember, for the two tools above to be successful, it is critical that the agents are reviewing their leads, answering questions, and working to sell the appointment—not the vehicle.
While the term "outsourcing" may seem scary at first, it can actually be a super productive way to maximize your BDC consistency. If an internal BDC is not what you are looking for, we also have Gemini which is a virtual BDC that removes all of those everyday headaches.
We work diligently to work on the basics so that you are well informed. But understand, there is so much more to making a successful BDC. Other items that have an impact are coaching best practices, conversation flow understanding, meeting structures, email flow, campaigning, and much more.
From the start of a BDC to the most tenured BDC’s, Sokal has many services to support you. If you have any questions, concerns, or ways that you currently structure your BDC, leave them in the comments below!