So you have your inventory and your marketing and your people so now what? Some dealers have told me that they believe the BDC is the most important department in the business. Although I may be biased I think that all good argue that there is some truth to that.
I have seen dealerships where 40% to 60% of sales, depending on the dealership, generate from the BDC if you have them taking all your internet leads and phone ups. And many statistic show that 90% of your traffic has been on line with your lot prior to the visit. All departments start with the sale...strong sales help finance, service, and parts all be successful. I have personally experienced that up to 60% are there because of the BDC. So yeah I think it is pretty important.
Many owners and managers are not aware if their BDC is working or not. Here are some stats that you should be looking at weekly at a maximum and monthly at a minimum. I am including some goals I have used to measure our effectiveness however I recognize that these can vary based on, types of leads, quality of inventory and your own BDC process.
1. How many leads broken out by Internet and Phone because yes the results are and should be different. Also make sure you define a lead, many BDC managers will determine what they think is a lead. What I would do is say everything is a lead and the only exceptions were if the lead was a service or parts inquiry or if an email and phone number were not valid. No margin for judgement.
Appointment Percentage from Internet Lead goal 30% to 40%
Appointment Percentage from Phone goal is 60% on first call and 70% with follow up- used higher than new
2. Of the appointments you set how many are showing.
Show percentage from both Internet and Phone leads goal around 60%
3. Of the customers that show how many are selling.
Sold percentage will vary by store, for example if you are a subprime store your close is obviously much lower, however in general we aimed for 40%. I have seen store want to hit 50% but those are pretty unique markets.
4. How many tasks per your CRM does your rep average per hour?
We aimed for 15-20 measurable tasks. This may vary depending on what your CRM can actually measure. Be leery of fake tasks.
5. Do you have a follow up process that reps can follow? Workflows, scripts, suggested emails. I was able to set up a schedule that populated automatically and then my CRM would tell me how many they completed. I was able to hold staff accountable to their percentage of tasks/customers followed up on.
This isn't new speech in the industry but still important. At the end of the day take stock in what is going on. Set up measures to hold your staff accountable. Get a baseline and then set goals. Make sure that you make your process of gathering the data feasible otherwise you will get overwhelmed and not do it consistently.
Barking for more appointments most likely won't sustain success in the long run. A strong process with accountability will help you hold market share, reduce employee overhead because less people will be more productive, better employee retention because they will make more money and better use of your marketing dollars.