Role of the Business Development Center (BDC) Over the years, many dealerships have struggled to get the entire team to realize and respect the role and value of a BDC. From being the first impression (in most cases) that a prospective customer has of the store, to selling the value of doing business with you, establishing rapport, getting the customer through your door, to a smooth turnover to Sales for a great experience, the BDC accomplishes many tasks. The most important task of the BDC is to sell appointments, not cars. Additionally, many dealerships have the BDC follow up on unsold showroom traffic to thank customers for their visit(s) and do their best to turn them into be-backs who eventually purchase. The BDC can also ensure high CSI scores for both Sales and Service with their follow up. If the sales department is considered the lifeblood of the dealership and the service department is considered the backbone, then the BDC, without question, is the heart of the dealership. Just like the heart supplies blood to every limb of your body, a great BDC pumps business into every department of the dealership. A healthy heart requires you to adopt healthy habits to function properly, so does your BDC. There are 7 main elements of a heart-healthy BDC. 1. UsedCarUniversity Copyright 2016, All Rights Reserved
Number One: Get the Right Leader Promote from within (or hire) a dedicated, detail oriented, dependable BDM with great leadership qualities and a desire to take the BDC and hit it out of the park in every respect. Your BDM should be passionate about the BDC, be excited about each and every appointment that shows, and each and every stat that climbs as the skills of the BDC team are refined and polished. A BDM leads by example. If you want your team to be energetic, excited, motivated, and competitive, your BDM must be all of these. Promoting from Within Introduce the BDC Representative (BDR) into the management role slowly, starting out as a BDC Assistant Manager (Assistant BDM). You have to have a process through which you can develop a BDR into a BDC Manager (BDM). You cannot put a BDR into a BDM role and expect that individual to immediately and capably lead a BDC team. You must start small with your BDM candidate. Assign the BDR additional duties and help them excel at those, then add more as confidence is built. Choose a candidate that is one of your most accomplished BDRs: your top producer whose skills are polished. This is the person who is consistently achieving and surpassing all individual goals, as well as helping the other team members in any way possible. This person clearly understands the role of the BDC in the dealership. Developing an Assistant BDM: Assign a few administrative duties of a BDM to your BDM in training. Slowly give CRM permissions to help with some of the lead management analysis. Provide instruction as to what to measure and how to measure it. Extend some authority to the person to help manage the team during that time. Evaluate their performance in leading and managing. Encourage the team to recognize the BDM Assistant in the new role with some authority. Assign portions of the daily meeting agenda to the Assistant BDM to execute. Teach how to train new BDRs, allowing the Assistant BDM to gradually take on more responsibility. Let them prepare the month end reports. Show how to present feedback, both positive and negative, for the month. 2. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Two: Have Ongoing Training No matter how inexperienced or experienced your new hire is, they need onboard training covering basic human resource (HR) policies and operational training as it relates to your dealership, which you have to provide. Then they need training for their specific position. Do you have that in place and is it being executed consistently with every new hire? If you provide position-specific training early on, you are providing your new hires with the best chance for success. More importantly, since they won t be learning through trial and error, which is the slowest method of education, you will see a larger and much faster return on your investment of the new hire. The key to any type of training or coaching for your team is consistency. If you train certain skills, and don t implement consistent, daily coaching afterwards, you can t expect consistent performance and results from your team. Consistency is the Key The key to any type of training or coaching for your team is consistency. If you train certain skills, and don t implement consistent, daily coaching afterwards, you can t expect consistent performance and results from your team. It s all about follow through. Take the time. Do it every day. If you do, you will see the value of your efforts as your team appointment sets and shows go up every day. If you don t, you may as well throw your investment of time and money in training out the window. The team will start out good with the new skillsets, but, in a relatively short period of time, they will become complacent. That will be reflected in your appointment set and show rates; they ll be going in the wrong direction. Get the right training for your BDM. Coach your BDM as to how to train the staff and make sure that all training is ongoing. 3. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Three: Set Expectations To perform well, BDRs need to know what is expected of them. It is very important to outline performance expectations in the department, from outbound call count, to call guide usage, to policies, etc. Setting performance expectations will provide a framework of how your BDRs should perform their daily job functions. Expectations should be SMART and stated clearly in writing. SMART Expectations are: Communicate Clearly: Great expectations can go askew if they aren t communicated clearly. Whenever you are setting expectations for your BDRs, be sure to clearly state what you want. If it seems the BDR doesn t fully understand the expectations or is confused, ask clarifying questions such as: 4. Without Expectations Without solid, measurable expectations, managers will have a very difficult time proving that a BDR is under-performing. However, if you ve documented your expectations and the fact that you have met with a BDR several times regarding these expectations, you will now have a solid case when it comes time to discipline. Do you need more information? Is there something else you need from me to get this done? Do you have any questions? Communicating your expectations clearly will help those under you work more productively. 4. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Four: Do Call Review Daily Daily individual call review is essential, but done by very few dealerships. It is not merely the usage of call guides that you are reviewing, but the delivery which has a bigger impact on getting the customers through the door. Do a lot of role playing with your team. If you keep call review simple, relevant, and do it daily, it will be one of the most important tools you have to ensure that your team is setting solid appointments that show. Assess. Backtrack. Collaborate. Assess your calls. Make sure the call is graded, or reviewed, and ask the questions: Was the proper greeting used? Were the caller s needs, or reason for the call, identified? Was the call handled with professionalism from start to finish? Backtrack: Take a Step Back. Was the call reviewed using relevant criteria? Don t grade all calls the same way. You wouldn t handle a prime customer on an inventory availability call the same way as you would a subprime caller. Grade similar calls consistently. Was the call reviewed based on the proper inbound flow chart? Have an inbound call flow chart in place so that your team knows how to address each type of call. If your BDC handles other calls for the entire dealership, teach them how to properly route each type of call. Review Inbound AND Outbound Calls The dealerships with the highest performing BDCs have two things in common: One: They record both incoming and outgoing calls. Two: They use those calls to improve the quality of ongoing training and customer service in their stores. What many dealerships lack is the recording of outbound calls made by the sales and BDC staff. If you are recording your outbound calls, you are amongst the forerunners in the industry who realize that the call management of outbound calls is just as important as the management of inbound calls. When you record outgoing calls, you set an expectation for your team that you will be inspecting their performance for the results you expect. 5. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Four Continued: Was the call reviewed based on the ability to set/reset an appointment? If you re grading calls with reference to whether or not an appointment was set, don t forget one important thing: the level of difficulty. Some may have to (a) set the stage for a follow-up (b) RE-sell an appointment with objections to overcome. That requires quite a lot of skill and should be graded differently. Collaborate: Make it a Team Effort. Ask for feedback. Ask the BDR, then the team. Give positive feedback, first and foremost, then make suggestions of where and how it might be handled differently next time. Don t berate or belittle the BDR, but give good, constructive criticism to help the BDR and the whole team. Choose one call per BDR per day. Listen to them and email yourself the BDR name/notes on the call. Listen to the call either with the BDR individually or as a team. As long as you are fair and review one call per BDR per session, there will be no feelings that any one person is spotted out. Pick the calls at random; some will be great, some will need work. Do Call Review Daily Using Call Review to Your Advantage: Recording calls can help: Structure role play exercises to improve phone skills. Ensure call guides are used. Isolate any challenges that may be experienced by staff members and address them to optimize performance on the phone. Capture missed calls, voice mails, and hang ups from various advertising sources so that each opportunity can be maximized. Document and follow up on any unfavorable customer experiences either pre-visit, while at the dealership, or post-visit follow up Chart the level of success that different advertising sources have by documenting reactions to the campaigns and caller concerns. 6. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Five: Establish a Chain of Command There should be a strict chain of command, from the BDRs to the BDM to the GSM to the GM to the dealer. BDRs should address everything directly with the BDM. There is no reason for a BDR to be discussing customers or leads with the sales staff. This will ensure that the BDM knows everything that transpires between the BDRs and the customers, and whether anything may need to be escalated to other managers or discussed with other staff members outside of the BDC. The BDM cannot fix something if they do not know it is broken. BDR BDM Creating Efficiency Simply put, a chain of command is a well-defined system for efficiently managing a large group of people. When a proper chain of command is established, it: Chain of Command Enforces responsibility and accountability. Makes communication more efficient. Brings structure and stability. Eliminates confusion of authority. Teach your BDRs to respect the chain of command in your dealership. It s critical that every individual understands the importance of the chain and knows who they must report a problem or inquiry to. GM GSM 7. UsedCarUniversity Copyright 2016, All Rights Reserved
Number Six: Establish Accountability Dealerships with top performing BDCs know the importance of keeping their team on task and in pursuit of the goals set for them. The problem is, with so many distractions in the BDC, it is often difficult to stay on task and consistently complete everything that needs to be completed daily. Here s a few tips to help stay on task and establish accountability: Install a whiteboard in the BDC for hourly production updates (outbound dials, calls completed, appointments set, appointments shown, etc.). Let the team share the responsibility of updating it hourly. Ensure that lead management processes related to the CRM are automated as much as possible to meet performance expectations. This includes the creation of work plans for each person working the leads. o BDR plan should include calls, emails, and texts for each lead type and status. o BDM plan should include a review of all leads every few days based on status so none of the leads fall through the cracks due to lack of follow through, or status change. o GSM plan (or whoever supervises the BDM) should include a similar review work plan as the BDM plan so that nothing falls through the cracks. Write a daily task list for the BDM. Prioritize the tasks from early morning to closing at night. The BDM will initial completion of each task and turn them in to the GSM daily Have the BDM write a daily task list for all BDR s. Each BDR should initial the tasks as completed and turn in to the BDM at the end of the day. Create a daily agenda for the BDM which accounts for each hour of the day and what the BDM should complete during that time. They may not be able to stick to it perfectly, but it should show the big picture and easily ensure that all tasks necessary for success in the BDC are known and completed. 8. UsedCarUniversity Copyright 2016, All Rights Reserved 7.
Number Seven: Give/Get More Feedback Feedback is one of the most powerful, yet underused, management tools. It s highly connected to the satisfaction and production of your BDRs. Regular feedback helps them to understand: Feedback is one of the most powerful, yet underused, management tools. Why their role exists and what they should be achieving. Whether or not they are achieving their goals. Where they are doing well and where they need improvement. The impact they have on other BDRs and the workplace. Feedback is a motivator. Let your team know how important each one of them is and how great they re doing! Types of Feedback There are two types of feedback: positive and constructive. Positive feedback reinforces desired behavior. Constructive feedback shows areas that need improvement. You need to give your BDRs both types of feedback in order to improve and retain quality performance. Two Heads are Better than One Do not establish a Do as I say, it s the only way philosophy with your team. One of your BDRs may have a suggestion for tweaking a phone script, email template, or another idea. Try it! The only thing for sure in a BDC is that nothing is for sure. You try an idea, if it doesn t work, try something else until you find what works for you. The sum number of heads on your BDC team is much better than one! 9. UsedCarUniversity Copyright 2016, All Rights Reserved
Establish and Maintain Success in Your BDC Now that you know the 7 elements to a healthy BDC, it is up to you to establish and maintain success. It will require structure, dedication and detailed reporting. A great BDC is a constant work in progress, but with proper organization and training, show rates can increase by double digits quickly! Click Here for More Information About BDC Training! 9. 7. Give/Get More Feedback 6. Establish Accountability 5. Establish a Chain of Command 4. Do Call Review Daily 3. Set Expectations 2. Have Ongoing Training 1. Get the Right Leader 10. UsedCarUniversity Copyright 2016, All Rights Reserved