BDC, Call Center...BS...Call It What It Is!

COMMUNICATION!

I just got through reading “Is the dealership sales call center obsolete?”on autonews.com. I got the article from Andy Warner on twitter. This article highlights dealers that have built, dismantled and maintain BDC’s and discusses the various pro’s and con’s of each but fails to get the real point.

That said I am going to try and land the plane on this topic and let’s discuss where you think I’m missing it or what we can do to make it better. The reality is that we have a real problem here that needs to be addressed for the retail auto industry as a whole.

I have beaten the lead conversion drum for years to the point many think I am obsessed with it.

The fact is that I am but over the last 2 years I have come to realize that… “Lead Conversion isn’t enough”, we are going to have to get beyond lead conversion to the visit to excel and therein lies our problem.

When we get a lead or a call there are a few inherent things we know we have to do.

  1. Answer the question
  2. Give the price
  3. Sell the appointment

But if you’ve answered the prospects questions and you’ve given them the price…why do they need you? When you get a prospect on the phone how do you get their contact information and make sure it is accurate, and then convince them to visit the store? These challenges are not new to the industry; they aren’t even unique to the automotive industry. The fact is all business working to generate leads face these same challenges.

The answer… VALUE!

To get something from someone, a lead, contact information, a visit you have to give them something of value in return.

Value Drivers

  1. Time – this is the number one reason the prospect is on the net to begin with, it would stand to reason if you can save them time in the shopping & buying process you will have an advantage (think Progressive.com). Here I suggest a 90 min test drive and purchase guarantee.
     
  2. Information – the primary reason a prospect contacts the dealership is for information, about the car, about their trade, about financing and of course the price Joe Webb talks about these various types of appointments in a very good blog post “The Four Appointments Car Dealers Should Set” but what is the VALUE the customer gets for setting the appointment? This is where most sales people miss it and is your opportunity to place yourself above the competition with an online brochure about the car they are buying with information on why they should buy from your dealership and a video introduction from you with a walk around of the car. You see the dealership and the YOU are the only things they can’t get somewhere else. This is the reason we developed infoMagnet our online brochure tied to our incentive based behavioral marketing app. When you offer this value 98% of the time you will get good contact information from a phone call to your dealership and over 60% of these customers will show up at your store with a 80% plus closing ratio.
     
  3. Convenience – we all pay more for convenience, we do business everyday based on what is most convenient for us. Make it more convenient for your prospect to buy from you. Deliver the car to their place of business let them drive it while you take their car and get the appraisal. I was doing this back in the 80’s and ironically I would sell at least 2 other cars to people in that office with in as many months after I did this for a prospect. My closing ratio…100%, I never lost a customer I delivered the car to.
     

Whether you are in the BDC or you are a salesperson on the floor you have to be able to communicate the value to the customer for giving their contact information, showing up at the store and buying from you. So you see it doesn’t matter if you have a BDC Department or Your sales staff handles the leads as they come in, they will all have to communicate value to get the customer.

The question is who do you want to train? That’s all.

So tell me, where am I missing this, if at all? What can we improve or add to TIME, INFORMATON & CONVIENENCE?

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Comment by Tom Gorham on May 29, 2013 at 1:27pm

There are some apparently who feel the BDC is dead.  I apologize if you've already seen this from Automotive News. But if not, go to... http://www.autonews.com/apps/pbcs.dll/article?AID=/20130527/RETAIL0...#

Comment by Timothy Lovrinic on May 29, 2013 at 11:30am

People are buying specific cars at this time.  Sounds strange, but they are not shopping based on what they can afford, but instead, they are trying to buy what they think they want as presented by tremendously effective marketing campaigns.  A refocus needs to be pushed forward and the effectiveness or necessity of a BDC will come into question. 

BCD offices and their staff do what they can by answering questions, generating possible selling prices or lease offers, but the prospective customer is still not approved to actually get anything. 

In the not too distant past, customers had a budget first and then they were directed, by the sales staff, to the vehicles that fit that budget.  If the sales person was capable, maybe they could raise them up to a more expensive vehicle.  But now, the customer comes in and wants X for Y dollars, but can’t actually afford X. 

The BDC does the best it can to explain why they cannot afford X, but the customer is never exposed to the option of getting qualified for an amount, and then they can look across a broad spectrum of vehicles they can actually afford. 

In yesteryear, the housing industry worked on the same principle of showing products (homes) and then figuring out which one the client can afford.  Now, you must be qualified to go look at homes.  The closing ratio in housing sales with a qualified client is nearly 100%.

The BDC office is essential to try and get customers into the dealership so the sales staff in the showroom can try and get them to bite.  But what if the customer came in 100% qualified for X amount and even had a specific vehicle presented.  How hard would that be to close? 

Technology has finally advanced and it is now possible to have the BDC gradually disappear.  The internet can answer all questions that are tangible.  Online programing can qualify a customer for a specific amount of money on a specific car, all factors included.  What is left is the intangible, how the car feels, handles in comparison to others, its curbside appeal etc.  All that will be left is the true closer.

BDC future?  I think it will be great just as it is: a low paying job filled by entry level staff who are able to direct traffic and act as a nice entry point to the dealership.  The internet has ruined the ability to make good profit because the customer doesn’t want to allow the business to make money.  We are entering the age of volume.  Get the customer pre-approved, and then the Sales staff has to do their job and sell. 

Comment by Mathew Koenig on May 29, 2013 at 7:51am
Amen to that Larry. I was Sales Training Director before leaving my old auto group to go out on my own and the hardest thing was to get leadership to care enough to actually keep it going.

They would look at me and go "you're the trainer...".

The leaders in the store are the #1 trainer to their team because they are training...or often DE-training, everytime they work a deal, take a TO or make a follow up call.

Like I said, no offense to the call center people but if leadership would lead instead of being managers their would be no need for a call center.
Comment by Larry Bruce on May 29, 2013 at 7:39am

A lot of IMHO's here without a doubt. However this still comes down to the 2nd to the last question in this post. "The question is who do you want to train?" 

I will add to that a saying from "Uncle Jimmy" Jim Ziegler - "You get what you tolerate" all the training in the world won't do you a damn bit of good if you don't inspect what you expect. 

These are basic business management 101 principals. 

Comment by Chris Hill on May 28, 2013 at 7:28pm
Ralph I want in on that debate!
Comment by Doug Davis on May 28, 2013 at 6:43pm
Tom, I do like chat. Chat likes more web traffic.
Comment by Doug Davis on May 28, 2013 at 6:37pm
Stan, my last three years at a dealership, I didn't buy leads. No third party leads even from the manufacturer. I generated my own.
Comment by Big Tom LaPointe on May 28, 2013 at 6:35pm
Good fundamentals here. I commend your workplace closing ratio... Mine wasn't that high... Takes a strong pro not to waste time with that and many (most) dealers don't train and develop pros. At www.CarChat24.com we believe the live chat option on a dealers website is a huge benefit to all your points.
Comment by Stan Sher on May 28, 2013 at 6:15pm

Doug, I agree but you still need a healthy mix of third party leads which works within reason.  

Comment by Mathew Koenig on May 28, 2013 at 5:53pm
Easiest bearteed valid mobile numbers from people looking at your car and I guarantee they aren't sold to anyone else because the moment they get your incentive, you get an email and a text with their mobile number so you can call them while they are on your add B-) Quality +Quantity www.konig.co/autocapture

Its the easiest and best tool for dealers...I can say it with confidence because its mine lol.

Sorry, couldn't resist the opportunity :-)

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