BDC is the most degraded, and most misused acronym in the automotive industry. It means something different to everyone. The acronym BDC stands for Business Development Center. A BDC is a department that proactively drives business through all profit centers like internet sales, inbound phone sales, unsold showroom traffic, lease retention, data mining, equity mining, fleet accounts, cross promotional marketing, special finance, service BDC, service CSI, hand raisers, mailers and specialty events. There are so many moving parts that the vast majority of BDCs are not profitable. In fact, over 80% of all BDCs are broken, and/or underperforming. Manufacturers, OEMs, CRM companies, data mining, and equity companies all contribute to pushing BDC. However, they push the concept, but do not demonstrate the creation, implementation, and rollout of a BDC. The proper planning, roll out and implementation, and accountability of a BDC are crucial to its survival.
Maybe you’ve tried a BDC before, and it’s failed. Perhaps, you are once again ready to give it a go, or maybe you are looking to start one for the very first time. Either way, you’ve come to the right place. We are BDC experts and have built tens of thousands of successful BDCs. Through our experience, we have discovered the top challenges that dealerships face when starting or having a BDC. Below you will find the most common BDC challenges that exist in the automotive sales industry today, and if applicable to you and your dealership, we can assist in solving the challenges:
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The Top 6 Challenges Plaguing Dealerships' BDC Services:
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Dealership Goals & Projections
Don't Know How to Implement an Automotive Central BDC
Many dealerships simply do not have the knowledge or experience to roll out, or implement a BDC. With all of the variations and pieces, it’s no wonder that the task is overwhelming and unfamiliar to most people. Due to that circumstance, some dealerships won’t even take a shot at it. However, if done correctly, a BDC can generate substantial business and profit for the dealership. By partnering with an expert that specializes in BDC, you will take the guesswork out of starting a BDC and drastically increase the profitability of success the first time around.
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Wrong Idea About what a BDC Really is
Some dealerships fail at BDC because they don’t have the concept of BDC right. They think that all BDC entails is having a room of computers with bodies to fill seats. Many have the wrong people in place because they don’t understand the true profile of what it takes to be an effective BDC rep. Others don’t truly understand the BDC ecosystem, and how it needs to work, both collectively and interdependently. The first step in starting a BDC is understanding what it is, and identifying which pieces of BDC your particular dealership wants to engage in.
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Wrong Infrastructure
Another reason BDCs fail is because they don’t have the appropriate infrastructure. Their department is filled with the wrong number of people, the wrong type of people, along with the wrong setup, resources and expectations. The infrastructure should be based on lead volume, the areas of BDC your dealership participates in, or wants to participate in, and should all be derived from the goals of the dealership. Unfortunately, there is usually no real logic in how the BDC infrastructure is designed, which puts the BDC at an extreme disadvantage.
Phone Training
Under Resourced
The BDC has way more opportunities and activities than the showroom, yet has less money and resources allocated to it. This may be derived again from the fact that the dealership may not truly understand the purpose of the BDC and how it should be setup. The dealership may have a BDC just to be able to say that they have one, but resources are usually limited from the start. Again, there are too little people, wearing too many hats, so they can never really specialize in any one category of BDC, which usually translates to a subpar BDC agent. Also, the CRM is generally a mess and there is a lack of leadership, or the wrong BDC manager in the position.
Lack of Respect
Lack of Respect
Oftentimes, the BDC lacks the respect it deserves. The BDC Manager isn’t looked at like a real manager. They are given all of the responsibility, but are not empowered to make accurate decisions and are almost always underpaid. Also, the BDC reps are not looked at like real automotive professionals. They are treated like secretaries or assistants on the sales floor. The lack of respect causes communication barriers between departments and forces departments to work independently instead of interdependently. The department is on an island alone, and not given the necessary support from management. It’s an “Us vs. Them” mentality and internal civil war.
Phone Training
Lack of Automotive BDC Training
BDCs can be intricate depending on what level a dealership wants to play at, yet most dealerships don’t invest in training their people. They spend approximately $64,000 a month to drive traffic to the dealership, only to send that traffic to untrained automotive professionals. They don’t know what to say, they lack scripting for guidance, they don’t understand the true road to the appointment process, they don’t have the phone skills to overcome objections, the don’t have a TO process, or national benchmarks and KPIs to compare their results to. A profitable BDC require all team members to possess communication, engagement, follow up, phone, text and social skills to excel in their positions.