1. New Vision Sales Automobile Dealer Sales Training – Article Series
Reasons for BDC Expansion:
Evaluating Core Indicators
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2. A business development center (BDC) is a dynamic entity that
needs to be able to expand and contract. Sometimes it’s
necessary to expand in one area while simultaneously pulling
back in another. For example, you may need to cut back one lead
source and simultaneously increase the number of leads from
another source.
When it comes to growth, there are different reasons to expand
and several methods of expansion. When BDC ROI reports
continually show effectiveness and profitability, it may be time
to expand. However, you must first assess the situation. Are
additional advertising sources available in your market to feed
the BDC? If not, you need other means of generating leads. If
you’re adding people to the department, will they be properly
trained before facing an upswing in leads?
You also need to look at the BDC’s performance with regard to
its forecast. Is the BDC meeting or exceeding its goals? If the
BDC is meeting goals in profitability, but lacking in another
area, it may not be quite ready for expansion. Additionally,
consult with peers or members of a 20 group to compare
performance levels and learn about their experiences with
expansion.
Another signal that might point to a need for growth is if the
BDC is handling all leads and follow-up and is left wanting
more. Many BDC employees have performance-based pay plans and
will be left hungry and unhappy if not given enough leads. The
lead flow for a BDC consisting of two business development
representatives (BDRs) and a business development manager (BDM)
should be around 500 new leads per month.
If they’re left wanting more (and can handle it), give them
more. They’ll make more money for themselves and the dealership.
BDRs need their call lists refreshed and want live action.
Remember, a BDC is an engine that must be continually fueled.
When you think expansion, two options might seem obvious— adding
people and/or leads. However, it is more complex than that. For
example, do you have a separate Internet department working
Internet inquiries and handling Internet customers? If so, I
strongly suggest merging the Internet department and BDC. This
may be done by either adding an Internet person to the BDC or
setting up an instant response system for all Internet prospects
and delegating each lead.
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3. Ultimately, you still want to communicate with customers in
their preferred way, and a merger between the departments might
be a fitting way to improve both departments. Physically merging
them not only allows for more BDC personnel, but if you drive
more traffic to your Web site, it will feed more leads to the
BDC.
There are three other ways to grow a BDC: 1) add to the current
BDC team, 2) add personnel to create two teams and 3) institute
a hybrid BDC, where the in-house operation is complemented by an
outsourced BDC.
If your team has developed to the point where you should
subdivide into two teams, I suggest keeping an equal number of
seasoned “phone ninjas” and newly trained hires on each team.
This will promote healthy competition between the teams.
The hybrid methodology is a viable option, but as with choosing
any provider, do your homework. It’s important the provider is
on the same page as the in-house BDC. Customers who initially
interact with your in-house operation and are later contacted by
the outsourced provider should not be able to tell the
difference.
Another way to expand is to add a new ad or lead source, or
replace an ineffective one. Sometimes a source will perform well
for a while, but eventually fall off either in lead quantity or
quality. The cause may be that your market is saturated or you
have exhausted the leads from that source in your area.
The BDM should always be seeking out and having conversations
with new lead providers. When dealers and GMs learn of new
sources, they should consult with the BDM. The BDM is in the
trenches everyday, has a finger on the BDC’s pulse and can
provide an educated opinion on potential sources.
Another way to develop is right under every dealer’s nose. Many
dealers are sitting on a goldmine of data and don’t even realize
it. Mining the database for past customers who might be in the
market for a vehicle is a more cost-effective way to feed the
BDC. For example, most CRM systems should be able to dial in on
customers with equity and produce a follow-up list for the BDC.
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4. Conversely, there are reasons to delay expansion. First, you
don’t want to rush it. When ROI reports begin to show
effectiveness and profitability, first see if the BDC can
maintain that level. If the success continues, you might start
by rewarding the BDC. For example, have a BDC Appreciation Day.
Secondly, market uncertainty is another reason to put expansion
on hold. A change in trends may indicate that, instead of
expanding, you might want to reallocate funds.
Expanding your BDC is a complex decision, and there are many
ways to do so. Evaluate the options carefully.
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Fort Mill, South Carolina 29708
803-802-2124
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