Make your BDC boom

DEALERS LEARNED TIPS AND STRATEGIES FOR OPTIMIZING THEIR BDCS AT THE INAUGURAL DRIVINGSALES CANADIAN DEALER FORUM

Business Development Centres (BDCs) were a hot topic at the Canadian Dealer Forum, covered in some of the more intimate breakout sessions.

When BDCs perform well, there’s no doubt dealers will see the ROI, said Bill Wittenmyer, Partner at ELEAD1ONE.

In a three dealership study in the U.S., Wittenmyer noted BDCs on the service side had a 77 per cent conversion rate. He added third party BDCs are effective at long-term prospecting, particularly after the 30 day mark.

Dealerships do have a need to manage calls —prospects make 26 calls on their mobile devices to only one Internet lead.

But where many dealers get bogged down is in the sales process, said Wittenmyer. “We’ve been in the business so long we’ve forgotten how to buy a car.”

What he means is that while BDCs can help dealerships manage the calls, whether in house or outsourced, they need to be managed effectively.

THE RIGHT FIT
When dealers come to Jordan Duguay to outsource their BDC, one of the first questions they often ask is how many staff are needed.

Duguay, Account Manager at DealerMine, and one of the breakout session leaders, said the answer lies in a dealership’s active database.

To put it into perspective, a single appointment coordinator can support 100-125 contacts a day, said Duguay. Any more calls than that will likely warrant a second appointment coordinator.

Dealers also need to factor in staff turnover. This is often highest within the first year, and it can even happen before dealers hit their performance targets.
The second question Duguay gets is who to hire.

Many BDC candidates are either starting out in their careers, and will likely be eager and willing to learn, while others may be starting over and they bring a different background to the table.

For Duguay, an ideal candidate would be dominant and moderately conscientious in that they can look at a customer file, establish what’s needed, and then make the call.

It’s also important that the candidate can perform steady work — the opposite trait of your top salesperson.

MEASUREMENT
Just having a BDC is not enough. Its performance needs to be measured, said Duguay.

Measurement should include outbound and inbound calls and conversion rates, as well as calls when the appointment coordinator reaches the decision maker and any attempts to reach the contact.

Wittenmyer said that a BDC takes about 4.89 attempts on average just to reach a person on the phone.

That’s why dealers need to have the right tools in place, such as a CRM to help drive efficiency, an automated system that can make outbound calls, call recording, reporting, and proper management.

But Duguay wants dealers to keep in mind that BDCs cannot guarantee appointments.

Managers should consider the factors they can control and monitor in their appointment coordinators, such as tone of voice, setting expectations for the prospect and addressing any objections. What they cannot control is who calls back, who calls in and who is reached when making outbound calls.

What dealers should do is look beyond the numbers, said Duguay. “Sometimes we get so caught up in numbers but we really want quality. Quality is going to get you results,” he said.

And quality comes from providing a consistent experience for customers, he said. It’s like ordering a hamburger: if you get ketchup only some of the time on your burger, you will probably find a new joint. The same goes for a BDC.

Duguay said that the status quo will use their receptionist to make calls three or four hours a day.

The better option would be to have a dedicated appointment coordinator handling calls. Even better is to have an appointment coordinator that handles all inbound and outbound calls for consistency, said Duguay.

But if the coaching is not monitored, it’s not effective.