Your BDC staff members should be producing a minimum of 4 appointments daily from out going calls. Every prospective customer who visits your business should, at minimum, be getting a personalized thank you call. For every 10 customers contacted, 3 should visit the dealership, and your team should be closing 2 of them. Assuming you are tracking all your Internet leads, you should be closing 10-15% of them on the floor.
Ask yourself these questions:
(Every BDC should be capable of answering, or know what to ask if you’re starting a BDC)
- Is your Business Development Center a profit center?
- What is your monthly BDC operating expense?
- Is your return on investment at least 5 to 1? If not, what is the ratio?
- Are you taking the heat at your NADA 20-group meetings?
- Are you tracking all your reaction leads? If so, are you closing at least 18% of incoming calls and 15% of internet leads?
- Is your BDC proactive as it pertains to developing business, or is your BDC really just a Business Reaction Center (BRC)?
- Does your BDC work with reactive or proactive leads for your service department?
- Do you see your BDC structure growing with more staff over the next year?
- Are you generating additional leads organically through your website, social media and SEO? Do the BDC staff an e-commerce representative? Learn about an HC solution we like to Elite Virtual Management (EVM)
- Is your BDC just there? Really, how’s that going for you???
The objective of any HC BDC (large or small):
On The Phone:
- The mission is to track all leads or 100% of the incoming phone calls related to a new or pre-owned sales opportunity.
- Capturing 90% full names and phone numbers (as close to 100% if your location has Caller ID).
- Book a solid and specific appointment on 70% of the incoming phone calls
- 50% show ratio to set appointments
- The sales team, with a proper showroom process, will close 50% of all showed appointments
- The conversion rate should consistently be anywhere from 18-21%
- NADA states that most automotive dealerships hover around 3-5%, what are you tracking to sell this month?
Over The Internet:
- All leads should be thought of as a fresh opportunity that needs quality attention ASAP. On hours, set a goal around sending a first response in less than 15 minutes. Off hours, it is an HC recommendation that someone responds to the leads which are tracked by the OEM.
- Maximum of three phone attempts per day (leaving only one voicemail), your staff will contact 20% of the total number of attempts made from this profit center.
- Of the total contacts, 40% will make a solid and specific appointment.
- 50% show ratio to total set appointments.
- 50% sold ratio on showed appointments.
- Total conversion rate should hover around 10-15% of the total opportunities.
If you are tracking “bad” Internet leads – accidental leads, non-adult prospects, etc. – AND getting refunds or replacement leads from your third party lead providers, then the conversion rate will hover around 30% of the total number of the workable leads received over the Internet.
In The Showroom:
- Assuming you track your road to the sale on 100% of showroom prospects, NADA approximates the number of fresh showroom prospects to convert at a rate of 12-15%, but HC clients consistently track at a 20% closing percentage. The Hawthorne effect is a consideration with this statistic.
- Of the 80% that leave for countless reasons… with proper HC scripting and processes, 35% should be back into the store during the same calendar month.
- 66% of those customers will be converted to sales.
- Overall, an HC client should realize a total conversion rate of 36-38% on all opportunities.
- HC will provide synthesis to the above-mentioned statistics through effective daily reporting which allows your management. team to use information and tracking tools to find any and all opportunities for improvement (OFI) as well as aid in realistic goal setting.
The facts to producing incremental volume and doubling sales:
(We’ve seen it!)
- Your BDC representatives should be producing 4 outgoing appointments per day and your sales people should be producing approximately 32 appointments a month.
- Every customer who visits your dealership should, at minimum, receive a “thank you” call from a representative at your dealership (BDC and/or Sales representative). *It is of the upmost importance to schedule a next action step with the customer, HC BDC’s follow up until the customer buys or dies… and when they buy, they just fall into another follow-up matrix for sold or bought elsewhere customers.
- The dealership should record all customer information in a central Contact Relationship Management (CRM) tool. Understanding the basic logic behind CRM involves (a) frequency of contact and (b) credibility of the BDC/sales representative making the call. Sales is not about just selling anymore; as much as it is about establishing a long-term relationship, it also implies the sales person is a knowledgeable advisor. CRM Training, offered as part of the Enhanced Services package, designates a simple and effective follow up matrix for any customer type.
- Service Departments and Collision Centers are a great source for leads, and your BDC needs to operate as an umbrella department for variable and fixed operations. Let HC show you how to capitalize on all the organic opportunities available to you.
- Morning sales meetings are fundamental to the success of your BDC as it pertains to the reactive profit centers, including: reviewing daily traffic logs, as well as making a quick assessment to determine a next action step for each showroom prospect, and preparing for every appointment so your team knows who, what, when, where and why. Chance favors the prepared mind! It is highly recommended for an HC client to inspect what you expect during in these meetings – this means going over the traffic and appointment logs from the previous days and providing daily training with your morning sales team.
Customer Relationship Management
The theory of Customer Relationship Management (CRM) is vital to the success of any BDC sponsored by Hudak Consulting (to clarify, we are familiar with the functionality of many CRM tools, but the theory behind the tool is what we are interested in endorsing here) – establish relationships (on the phone, over the Internet or in the showroom) and maintain them long-term via frequency of contact by a knowledgeable advisor. In short, successfully trained BDC representatives facilitate sustainable growth and development. Let HC partner with your dealership to find and/or cultivate such a representative.
- Understand a Business Reaction Center (BRC) from a BDC!
- Plan, create, develop and maintain a cost-effective and state-of-the-art BDC (encompassing sales, service – and/or your organic online presence, eg. e-Commerce solutions).
- Increase your overall customer satisfaction ratings.
- Competently handle calls with HC scripts and world-class word tracks.
- Reach your full potential in converting sales from reactive profit centers: unsold walk-in, Internet and phone traffic.
- Mine your database properly – update info, investigate wants/needs, and EARN the future sales through effective follow up
- Respond well or re-spark the conversation with quality Internet templates (communication styles may differ for mobile customers).
- Capitalize on becoming a volume dealership without sacrificing gross PRU.
- Daily reports and HC tracking solutions are top-notch indicators of opportunities for improvement (OFI).
- Join and participate in an active support network online, available at the BDC rep-/MGMT-level and administered by knowledgeable HC staff.
Sales BDC: Installation Options
4 Structures:
- BDC staff in central location (controlled environment).
- BDC staff and sales representatives are both involved in central location.
- BDC staff, BDC Manager and sales representatives are involved together with the process in central location.
- Sales Managers monitor sales representative’s daily activity (tasks to be completed) from their individual work stations. (least effective and most common).
Service BDC: Installation Objectives
- Hire and train a competent staff to handle incoming service appointments.
- Customer satisfaction Index penetration.
- Stimulate customer pay vs. relying on warranty work.
- Produce a steady flow of traffic for service, through outgoing appointment setting.
- Service Consultant perform walk arounds.
- Increase hours per repair order.
Hudak Consulting offers top of the line business development center and call center sales training. To request a FREE test drive, fill out our contact form, or give us a call at: 859.992.4166
