The document discusses best practices for fixed operations service BDCs based on a dealer assessment. It finds that most dealers did little research before starting their BDCs. Startup and monthly costs ranged widely. The majority of dealers funded their BDCs through their new, used, and service departments. However, some dealers measured ROI while others did not have metrics. Most common pay structure for BDC advisors was hourly plus bonus. Success was typically defined by customer satisfaction scores and service department volume goals.

1. BDC Fixed Operations
Best Practices Assessment
Getting Started:
Did Your Research/Visit Other Dealers with
Inbound/Outbound Service Processes?
43%
Yes
No
57%
The majority of dealers did little or no research/dealer visits. Only one dealer visited
non-automotive businesses (banks, other retail) before installing his BDC.

2. Service BDC Estimated Start-Up
and Monthly Maintenance Costs
1 1
1 1
$6k
$4k
1 1 1 $10k
$6k
$10k $12k
2 $15k $15k-$16k
$25k $18k
$50k $21k
1 1
$80k 1
$29k
1 1
2
As cited by the Dealer Principal/GM the estimated startup costs for the Service BDC
indicate that the majority sampled added on to existing BDC installs. Monthly costs
reflect a wider range in staffing and resources.

3. Funding of the BDC
• There is no set rule when it comes to funding the
operation. The majority of respondents spread the cost
of the BDC over the New, used and service
departments. One dealer has reduced his advertising
budget to fund the BDC. One dealer adds a $35 pack to
each car sold. It does appear that all the respondents
are providing a base salary for BDC positions. In the
past, dealers have experimented with commission only
structures for both sales and service. Service BDC reps
would be paid on appointments made, appointments
kept, no-shows rescheduled and in some cases, a small
bonus for email addresses captured. These structure are
still in place, but as part of the bonus structure.

4. Funding of the BDC-ROI
• Given the expense of the BDC, it would be natural that
the return on the investment would be closely monitored.
That is not necessarily the case. Four reporting dealers
do not have a gauge to measure the success or failure of
the BDC.
• Several measure the success on more qualitative
grounds such as increased reduced advertising
expenditures; retail traffic and sales (mixing the sales
and service BDC into an overall package).
• There are however several dealers who look at their
performance against industry metrics as well as dealers
who track the service business generated by the BDC.

5. Funding of the BDC-ROI
• There is a need for standardization in the
area of ROI. It likely reflects on the
dealer’s lack of research and preparation
(in the planning and implementation
phase) insomuch as the ROI metrics are
glossed over.

6. How the Dealership Funds the
BDC-Per Dealer/GM
19%
25% Spread Across Departments Evenly
Fixed % Across All Depts.
Per Dept. As Utilized
Add To Vehicle Sold Invoice
6% 19% Reduce Ad Budget to Fund
Monthy Assessment Across All
Stores (Overhead)
6%
25%
The Majority of Dealer Principals and GM’s report funding of the Service (and other
BDC’s) by department or as overhead. Notable exceptions include adding $35 to the
invoice of each vehicle and reducing the Advertising budget by $25,000 per
month to fund the BDC.

7. How the Dealership Funds the
BDC-Per BDC Manager
17%
23% Spread Across Departments Evenly
Fixed % Across All Depts.
Per Dept. As Utilized
Add To Vehicle Sold Invoice
6%
Reduce Ad Budget to Fund
24%
Monthy Assessment Across All
6% Stores (Overhead)
24%
Funding as reported by the BDM’s mirrors that reported by the Dealer Principal/GM
indicating that the BDM’s are aware of at least the basic accountability of their
department.

8. How the Dealership Funds the
BDC-Per 8%
Service Manager
23%
Spread Across Departments Evenly
Fixed % Across All Depts.
23%
Per Dept. As Utilized
8% Reduce Ad Budget to Fund
No Answer/Don't Know
38%
Interestingly, Service Managers involvement in BDC funding appears to be limited.
A fair percentage (23%) of SM’s do not know how their Service BDC is funded.

9. BDC Pay Plans
10%
10% 30%
Hourly
Hourly + Bonus
Weekly + Bonus
Monthly +Bonus
50%
Over 50% of the dealerships report an hourly + bonus pay structure for BDC
advisors. Of those reporting, 80% have not changed their original pay plan.
Of those dealership where the pay plan was changed, the reason ranged from
“overcompensation” to “more employee incentives” more $ to “retain” and more
flexibility in the plan.

10. Leigh, the following two slides breakout the Jay Wolfe Acura
individual pay plan included in the packet of additional
templates and info. However, in reviewing it with the pay
plan that is cited by the BDM, and the constant notations in
the plan to “advisors” it’s not really clear if the pay plan that
was included is for BD reps or Service advisors. I’ve
included it in based on the thought that the plan provided by
Wolfe was for BD reps.
Regardless of who it is for, according to the BDM, the plan
will be revised as the reps are seen as overcompensated.
that info is included in the following slides…

11. BDC Pay Plans-Example
Following is an example of a revised pay plan. it is based upon a combination
of manufacturer (import) service CSI targets, dealer CSI targets resulting in
both individual and advisor team incentives.
(Based upon) C-P, Warranty and Internal individual advisor labor sales (after
discounts) percentage on the (manufacturer scale) for Individual Overall
Service average score for advisor pays as follows:
Below national score 6.0%
Equal or Above National Score 7.5%
Equal or Above Standard (90.5) 10.0%
Equal or Above 92.0% 11.0%
Dealer Objective (95.0%) 12.0%
Bonus paid on advisor team C-P ro Average (after discounts)
1.7 = $200.00
1.8 = $300.00
1.9 = $500.00

12. BDC Pay Plans-Example
Example of a revised pay plan continued
Bonus paid on highest number of returned surveys (minimum of 10 surveys
returned required): $200.00
Precision Team Bonus (Annual) Achieved as a Group = $500.00
Sublet Sales pays as follows:
10% of the gross profit on individual sublet sales
Important note: this dealership is currently considering an additional revision to
the plan as it appears. In conjunction with the $1,500-2,000 monthly
salary, it is felt that the staff is overcompensated.

13. What Benchmarks Determine
Success?
Improved CSI over
25% 24%
prior score
Compare Against
National Avg.
Successful
Appointments
Volume of
13% 13%
Appointments
Generate set % of
Service volume
25%
Success is defined by a combination of improved customer satisfaction and
service department volume. The consideration of successful appointments (defined
as showing up on time or successful rescheduling after a no-show) combined with
improved CSI should be considered a top priority for overall measurement of
success.

14. Measurement of Results
9%
9%
Improved CSI
Blue Oval Reports
9% 45% Phone Tracking
Customer Surveys
9% Sales
Unique Visitors
19%
Improved CSI scores account for the largest measurement group. Individual dealerships
have added additional criteria.

15. BDC Manager Accountability
28%
36%
Customer Contact
Day to Day Ops
Reports
Resolving Problems
18%
18%
The BDC Manages (BDM’s) are primarily held accountable for customer contact and
problem resolution. None of the BDM’s reported accountability for profitability of the
department

16. Business Background of BDC
Managers
10%
Customer Care
10% Experience
Specifically Non-Sales
40%
Service
10%
Phone & Computer
Skills Only
No Answer/Don't
Know
30%
It must be noted that the majority of Dealer Principals/GM’s did not answer this query,
indicating a potential lack of involvement in the selection process. This may be due to
GM turnover but this also indicates a lack of involvement in the review and
measurement process. For those who did answer, a management background
did not appear on most of the surveys. The BDC Manager is often hired based on
perceived people skills and phone skills. Clearly this is perceived as a “secondary”
position in many dealerships.

17. Dealer/GM‟s and the BDC
• Personnel selection as done by the respondents
points to the need for a better understanding of
the complexities involved in the BDC process as
a whole and to service specifically. For example,
Most BDC reps have little or no ability to
assuage customer issues, the majority of
dealers require that the call be handed over to
the service manager or assistant manager.
Where authority is granted it is usually in the
form of being able to authorize a free oil change.

18. Dealer/GM‟s and the BDC
• Job descriptions for the BDC are fairly lax.
They range from “good communication
skills”, a desire to help people, computer
skills, to looking for “young girls with dead-
end jobs.” This translates to pay plans
which are often close to minimum wage,
with some bonuses based on
appointments kept. Often “flexible hours”
are a consideration. In a number of cases,
prior experience is not necessary.

19. The BDC Manager
• The overwhelming reason to expand the focus
of the BDC to fixed operations was to fix
problems with the service department resulting
in customer complaints and dissatisfaction. Only
one manager cited “getting more customers” as
the primary reason.
• Very little research was done prior to setting up
the BDC. Only two dealers cited significant
research and visits to other dealer to see their
systems was evenly split. Only one dealership
examined non automotive business BDC’s.

20. The BDC Manager
• Previous experience as a BDC manager
was evenly split however
duties, responsibilities and accountability
ascribed to the managers vary greatly
between dealerships.

21. The BDC Manager
• All of the BDC managers report a medium
to high level of satisfaction with the
process and feel that there are significant
opportunities for continuous improvement.
• While evaluation process vary from “none”
to significant reviewing on a daily basis,
the BDC managers point to improved CSI
scores as proof positive that BDC is
effective.

22. The BDC Manager
• It should be noted however that there are
still a number of disconnects when it
comes to areas such as scheduling
appointments, pay plans, follow-up on no-
shows, mining the BDC for potential sales
customers, up-selling, etc.

23. The Service Director/Manager
Thoughts and Opinions on the Service BDC
• The Service Managers cite good communication
and people skills as important considerations for
an effective BDC rep. Several cited that the rep
must be “thick-skinned” in order to deal with
unhappy customers and aggressive service
advisors.
• Two SM’s stated that the BDC rep “should be
car knowledgeable”; a description which both
the BDC Manager and Dealer/GM would
disagree with.

24. The Service Director/Manager
Thoughts and Opinions on the Service BDC
• Job training responsibilities vary greatly by
dealer. From joint training by the Service
Manager and BDM to training by techs,
advisors and the shop foreman.
• It should be noted that the BDM’s (for the
most part) report more standardized
training, including the system providers,
manufacturers and third party training.

25. The Service Director/Manager
Thoughts and Opinions on the Service BDC
• As a fair percentage of Service Managers are
unclear as to how the BDC is funded, more
interaction between SM, BDC and general
dealership management appears to be
necessary.
• In many cases, SM’s understand that their
department is responsible for contributing to the
funding however, only a handful of respondents
provided a a detailed breakout of the funding.

26. What Were the Determining Factors That
Led to the Expansion of the BDC to Fixed
Ops?
• Primary Factors:
• Low CSI Scores
• Service Issues
Secondary Factors
• Need for Consistent Customer Contact
• Problems with Inbound Calls

27. What Are Some of the Successes
Experienced So Far?
Perfect CSI Scores
8% 16% Better Scheduling
15% Warranty Follow-up
Email Appointment
15% Scheduling
More Service Profit
15% Improved Appointment
8% Show rate
Improved Process
15% 8%
Improved CSI
Identified successes vary but have nonetheless been noted.

28. What Unexpected Benefits Did You
Experience?
In descending order based on number of responses
• How quickly BDC personnel developed
• Strong relationships/rapport between customers
and BDC department
• Revenue generation
• Higher CSI
• Production greater than expected
• Personnel “always learning
• Nothing

29. Have You Modified Your Processes Since
the Original Implementation?
29%
Yes
No
71%
The broad majority of dealerships have modified processes. Modifications,
listed in order of ranked most changed to least changed:
Changing scripting 4
Introducing customer to management2
Call missed appointments 2
Learn how to load shop 1
Streamline process 1
Reach customer sooner 1
Continuous improvement 1
Change mail templates 1
Change personnel 1

30. What Do You like About Your Current
Process?
• Easy/Flexible (Overall process)
• Customer calls answered quickly
• Personal and non-threatening
• Measures and tracks trends
• Gives more time to spend with the
customer
• Better customer communication
The BDC Process has improved dealer/customer communications. 100% of the
respondents reported that their customers were very or extremely satisfied
with the process as it now exists in the dealership.

31. How Would You Rate Your Current
Customer Service Process?
1-5 Rating 1 = Worst / 5 = Best
• The majority of BDM’s rated the process as a “4” (8)
– Three gave a “5” rating
– Two gave a “3” rating
– One gave a “2” rating
– There were no “1” ratings
When Dealer Principals were asked to rate their BDC in relation to Fixed Ops,
the average score was a “3”. There is obviously a varied interpretation of
“success” on the part of upper management and the BDC.

32. Staffing the BDC
• Centers range from 3 individuals to 11.
• Staffing is determined on volume. Only
one dealership has staffed according to
“manufacturer recommendations”
• The majority of staffs are a combination of
new hires and promoted/shifted
employees

33. Staffing the BDC
• For those employees hired from within, the
majority came from sales, with
administration, including cashiers, a fairly
close second
• Only three respondents cited the Service
Department as the source of employees

34. Integration Issues
36%
Yes
No
64%
While the majority of dealerships reported no integration issues, those that did cited
lack of integration with the DMS. In answering what the manufacturer could do to
help expedite the process, respondents had varied answers including:
“Better lists from Ford”
“Funding”
“Manufacturers should release „fixed products‟”
“More „best practices‟ from manufacturers”

35. Inbound Call Process
The Handoff: Most of the Time Never
BDC Service 1* 4* 5* 4*
BDC Sales 2 3 7 3
BDC Customer 2 1 6 4
Relations
BDC Management 2 2 10 1
*Number of answers per rating of 1-4

36. Inbound Phone Vs. Internet
• The maximum number of Service-related Internet requests is
minimal. While five respondents reported 2-3 per day, seven
respondents reported 0.
• In contrast, the BDC’s report anywhere from 25 to several hundred
inbound calls per day.
• Two BDC managers reported that they “did not track” in-bound calls.
Tow managers reported “one” call per day.
Although the Internet has come into its own as a research and sales
channel, there is significant room for developing the Internet for
Service related activities.

37. Service Appointments Thru BDC
9%
13%
100%
50%
52% 5%
13% 0%
Don't Know
13%
Slightly over half the Service BDC’s schedule all of the service appointments.
The numbers drop off significantly as reported by the BDC Managers.
In several cases it appears that the Service BDC has little or nothing to do with
critical initial service customer contact.

38. Service Process
Of the dealerships surveyed, SA’s and the BDC are assigned
different responsibilities throughout the Service Process.
Each dealership has a different combination of assignment given to
the SA’s and the BDC.
In some dealerships roles are interchangeable.
In most, they are well-defined.

39. Service Process
BDC Only Service Advisor Only BDC/SA Shared
•Inbound service related telephone
call
•Customer and vehicle information
verified DMS
•First-time visitor file created
•Captures Year, Make, Model
•Captures mileage
•Captures VIN
•Creates service appointment
•Captures manufacturer company/
recall information
•Verifies if Extended Service
Agreement is in force
•Captures customer’s vehicle
condition (complaint)
•Confirms customer appointment
•Creates pre-arrival package
•Who greets customer upon arrival
•Confirms customers primary needs

40. Service Process
continued
BDC Only Service Advisor Only BDC/SA Shared
•Conducts vehicle walk-around with
customer
•Evaluates cost and alternative
choices
•Confirms repair completion time
•Records customer signature
•Follows-up on “No Show”
appointments
•Transfers order to dispatch
•Scheduling of repair
•Shop loading of repairs
•Initiates a multi-point inspection
•Obtains additional customer
authorization for ANR
•Reviews completed RO with
customer prior to pick-up
•Who collects invoice amount (note:
primarily collected by cashier)
•Who delivers vehicle back to
customer (primarily porter)

41. Service Process
continued
BDC Only Service Advisor Only BDC/SA Shared
•Schedules the next routine visit
•Follows up and schedules follow-up
visits caused by special order parts
arrival
•Who performs follow-up contact with
customer concerning the customer
experience
•Who performs follow-up on unsold
prospects

42. Service Process Review
• Based on the information gathered, there
are a number of areas, primarily in the
initial customer contact, arrival and
information gathering phase that can be
given over completely to the BDC.
• This would increase the efficiency of the
SA’s relieving them of initial contact
paperwork.

43. Service Process-Miscellaneous
Do BDC reps have information available Do BDC reps have information available to
regarding repair limitations due to know what type of appointments they can
limited availability of shop equipment? make and for what date and time?
8%
38%
Yes
Yes
No
No
62%
92%
23% 23%
Yes Yes
No No
77% 77%
Does the BDC make confirmation calls 24-48 Do BDC reps identify if the customer neeeds
hours prior to the appointment? alternative transportation?

44. Recapture of “No-Shows”
Call within:
2-3 hours
12 hours
24 hours
No Process/Not
Called
Most dealerships follow-up no-shows within 24 hours. One BDC reports a
30% recapture rate on no-shows. Surprisingly several dealership still have no
follow-up on no shows. This demonstrates a critical lack of focus on the BDC
process and potential.

45. Development of Best Practices Summary
• Based upon the analysis of the 15 participating
dealers Several Best Practices have been
identified.
• Best Practices have been separated out by the
following job titles:
– BDC Manager*
– Dealer Principal/GM
– Service Director/Manager
– Parts Manager
– IT Manager*
– Internet Manager*
*there are instances where the some or all of these roles are fulfilled by the same individuals

46. BDC Manager Best Practices
• Strong leadership with experience and
responsibility
• A well funded IT department with
investment in the latest technologies
– State-of-the-art phone system is a must
– Cutting edge software

47. BDC Manager Best Practices
• Recognition that this is a Service
Department process and it should be
treated as a separate entity
• Invest in the right people who can create a
BDC “culture” with a strong focus on
process and training

48. BDC Manager Best Practices
• There are a number of tactical Best
Practices cited by BDC Managers as well,
for example:
• Use the BDC to its full capacity for
generation of customer contact in the form
of letters, emails, DM.

49. BDC Manager Best Practices
• Collect email addresses via a
sweepstakes entry card
• Keeping customer updated on status of
vehicle service via phone and or email

50. Dealer/GM Best Practices
• A satisfaction card is completed by BDC
rep and customer
• GM meets with BDC manager daily
• BDC manager reports directly to GM

51. Dealer/GM Best Practices
• BDC rep delivers new vehicle to form
relationship with customer
• BDC positions are not just a job but a career
path
(note: one dealer cited “use BDC as entry level for hiring. Groom for other positions such
as service advisor. Not necessarily the best course of action.)
• For hiring BDC position use phone interview to
test applicants phone skills

52. Dealer/GM Best Practices
• Dealer has three convenient Ford service sites and
routes customers to the most convenient
• Schedules service recalls for Saturdays
• Follow-up estimates on repairs to customers who opted
not to leave their vehicles in the body shop

53. Service Manager BDC Best Practices
• Management recognized the need to motivate
BDC staff
– Daily adjustments are the norm
– Frequent adjustments responsible for
successful launch
• Service advisors and BDC meet twice monthly

54. Service Manager BDC Best Practices
• Follow-up customers for 1-24 months
• VINs not in for 6 months are tracked
• BDR can resolve concerns for $50 and less
• 10 day follow-up by Service Advisor

55. Service Manager BDC Best Practices
• Radio station contest entry forms have email address
line
• Letter generated day after service
• Service appointments confirmed by phone call
• Daily communication between Service Advisor and
BDR’s

56. Parts Manager Best Practices
• Integration between BDC and Parts should be a paperless process
• Parts Manager meets daily with BDC Manager regarding special
orders
• Recognition that Parts staff is sales motivated and BDC is there to
bridge the gap between the customer and the Parts department
• Continuous training of BDC staff in Parts
BDC solicits fleet, body shops and other commercial entities

57. IT Manager Best Practices
• Bulk email Service specials bi-weekly (Using data base for
marketing)
• Up-sell opportunities for BDC reps-Service bonuses including $2 per
appointment, $5 for Saturday appointment
• Follow-up on missed appointments (See BDC Manager)
• Upgraded phone service to allow for immediate response. Calls
routed to live person. No holds or Vmail.
• Appointment requests sent online and confirmed by advisors upon
request review

58. Internet Manager Best Practices
• Loaner vehicles for “life” providing scheduled maintenances are
done at dealer and take longer than one hour (not, not strictly BDC
related)
• Tires for life (see above)
• No calls forwarded to Service Advisor-all handled by BDC
• Bulk emailing of coupons

59. BDC Fixed Operations Survey
Key Learnings:
• There is a lack of sufficient prep work/research when
instituting the BDC
– In some cases it is done “on the cheap with minimum investment in
systems and people
– Need to arrive at optimum ROI
– Need to develop tracking measurements to determine successful
outcomes
– Need to set goals for the department
– Need hardware/software systems in place
• Adequate computer, telephony and software systems (note: Most
BDC Managers feel that the current equipment is satisfactory if not
better. Initial integration problems have been overcome
– Back-up systems a must

60. BDC Fixed Operations Survey
Key Learnings:
• Need for stronger, empowered management
– Better training
– Involvement in dealership executive decisions
– Craft effective job descriptions
– Hire qualified employees
• Enhance empowerment to staff for successful
customer issue resolution

61. BDC Fixed Operations Survey
Key Learnings:
– Knowledge to define training needs
– Sufficient budget to supply train BDC reps
– Fundamental understanding of the products and
services offered
– Manufacturer and dealership department training

62. BDC Fixed Operations Survey
Key Learnings:
• Need to separate Sales and Service BDC’s due
to fundamental differences in desired outcome.
– Sales process and inherent skills vs.
customer relations, service issues and
customer retention
• Total integration with DMS is critical
– Need to maintain up-to-date lists
– Need to comply with federal do not call regulations

63. BDC Fixed Operations Survey
Key Learnings:
• There is a lack of cohesive marketing efforts
– The fixed ops BDC has the ability to create and
maintain effective direct marketing.
• BDC management requires little or no training in
marketing.
– Results in the reliance on Service marketing and or
turnkey marketing software.

64. BDC Fixed Operations Survey
Conclusions
• Clear, concise Fixed Ops BDC Best Practices
are sorely needed for the dealerships with
existing Fixed Ops BDC’s and those planning on
implementing.
• Dealers need to review available research along
with the help of a capable consultant(s).

65. BDC Fixed Operations Survey
Conclusions
• Dealership needs a clear set of measurements
and goals for the BDC
– Facilities, technology, equipment and monthly
services
– Employee to volume/growth ratios
– Cost per inbound call
– Cost per inbound email
– Outbound calling
– Marketing
– Employee training and retention

66. BDC Fixed Operations Survey
Conclusions
• Dealer needs to employ competent
management with training in customer service
– Develop optimum career path
– Provide adequate compensation
• Pay plans must be developed and or adjusted to
attract competent management and retain
competent employees

67. BDC Fixed Operations Survey
Conclusions
• Dealership needs to recognize potential profit
that the BDC will contribute due to:
– Increased customer retention (CSI)
– New customer conquest (marketing)
– Efficiencies gained in service scheduling
– Efficiencies gained in no show rescheduling

68. BDC Fixed Operations Survey
Conclusions
• Improved training is needed
– Updating on systems and skills
– Cross training on Parts and Service
– Consistency of training
– Quality of training
• Best Practices should include more
responsibility for BDC
– Free up Service Advisors for more efficiency
– Create the career path

69. BDC Fixed Operations Survey
Conclusions
• BDC Management needs to integrate with all
departments
– Will lead to improvements in processes
– Develop a synergy with other departments
– Demystify the BDC and it’s processes for other
departments
– Lead to better overall customer service