30 Apr Is your BDC the result of a failure in training?
Here’s a question for you –
Is your BDC the result of a failure in training?
That should have your attention. If I’ve ever written an article that will be misconstrued, this will be the one! As I’ve talked to dealers over the years, I’ve seen many BDC’s spring up out of knee-jerk frustration. While there are obviously exceptions to the rule, this is something I’ve seen repeated in the industry over the past several years. A dealer says “we tried training our salespeople, but they’re still terrible at handling phones so we’ve hired three people and all they’re going to do now is handle our inbound sales calls as well as Internet leads.” I have a number of different problems with this thought process and I’m happy to tell you about them:
1) So you’re telling me that the people that you’ve hired to sell Lexus in Chicago are capable of talking to a customer that walks into the dealership, but for some reason it blows their flipping minds to talk to that same customer on the telephone or communicate via e-mail? I’m not willing to accept that.
2) I have trained tens (if not hundreds) of thousands of salespeople and BDC reps over the years. In that period of time, I have found that it takes every minute as long to PROPERLY train a BDC rep as it does a salesperson. The operative word in the previous sentence is “properly”. As a matter of fact, it takes longer to train a BDC rep. Why? Because while the sales staff already knows the product, the BDC staff is starting from scratch. I’ve asked BDC reps specific product questions before and you may as well be asking some of them the gross domestic product of Bolivia. So while you think you’re solving one problem, you’re really creating another. Most of the calls I listen to that are made into BDC’s do not represent an improvement over the sales staff. At most it’s the get the customer’s name and number department while trying to set up an appointment without giving the customer an actual reason to come in. I’m not trying to be harsh here. This is fact. We are creating an unnecessary level of specialization at many dealerships.
3) In this day and age, where the number one thing I hear when I do dealer 20 group meetings is “expense, expense, expense!”, shouldn’t the number one expense be hiring a second group of people to do the job the first group should have been doing? We’re talking about communicating with customers on the telephone and Internet here! This stuff isn’t quantum physics. It amazes that the same dealers who throw up in a trash can when they get a $1000 invoice for training have absolutely no problem in adding as much as 20-40k of expense per month in creating a BDC.
Here’s the solution; train your people to do the jobs you hired them to do. If I’m hired to sell cars at your dealership, I should be capable of communicating with customers in person, on the telephone, and online. That would be part of being a well-rounded salesperson. Unfortunately, salespeople don’t necessarily arrive on your doorstep well-rounded. It’s your job to train them. The sad fact is that much of what dealers have bought over the years in the name of training, hasn’t been anything close to training at all. Going to the Marriott and listening to myself or anyone else talk for eight hours is as much training as going to a baseball game is training for baseball. You might get educated, but you’re not necessarily going to get trained. For something to be considered training, three elements need to be present: 1) Education 2) Simulation 3) Accountability. If any of those three elements is missing, whatever you’re trying to accomplish probably isn’t going to happen.
Now I’m not trying to convince anyone to dismantle their BDC. What I’m telling you to do, is make sure that you’re not replacing one group of people that you didn’t train properly, with another layer of expense that you’re not training properly either.
BDC’s ARE GREAT and provide a wonderful return on investment when you have them doing the right things the right way. For example, following up unsold customers. 39% of people surveyed say that the reason that they would not come back to a dealership is because they didn’t like the salesperson for whatever reason. Too tall, too short, reminded them of their ex-brother-in-law or smelled like smoke. What this is saying is that your sales staff does not have a shot with 39% of what you think are their be-back opportunities. When the customer doesn’t like the salesperson they won’t tell him or her “we didn’t like you”. What will they say? We’ve decided to hold off or we’re not going to do anything right now. They won’t tell the salesperson, but they will tell someone else. That’s why it is critical that every dealership have someone in ADDITION to salespeople following up on each and every customer that visit’s the store. That is a great function for your BDC.
Another thing you can do; shift their focus to your service department. I have worked with many dealerships that have amazing success in having BDC representatives schedule both repair as well as recommended maintenance. They can actively be following up on recall notices and generating service revenue. This is a huge opportunity. Your service advisors are on the drive talking to customers. They’re in the shop checking on vehicles. Call your dealership. Try to get a hold of the service advisor sometime and see how often you get voicemail or get put on hold for a period of time.
So again, I’m not telling you to dismantle your BDC. Business Development Centers are great when they are actually developing business. Let’s just make sure you have yours focused on the proper opportunities.