Looking to get a handle on BDC costs per lead

Daryl Sanders

Looking for data on BDC costs and especially interested in translating those costs to a per lead figure.

Daryl Sanders

Derrick Woolfson

Daryl, sadly - there is not much data out there other than the typical closing rates, set rate, & show rate. As for the cost, I have always taken their income + expenses (i.e. health insurance, employment tax, etc.) and divided that by the appointments of theirs that led to a sale. I am cognizant that they are not necessarily responsible for the sale. However, they are what brought the potential sale to the dealership. That said, once you divide their 'costs' vs. 'gross profit'  you will see what your actual ROI is for the BDC. The only thing that can make it harder is the variation of the sales consultants pay plan. 

Derrick Woolfson

Now regarding cost per lead, there are multiple ways to do this! What CRM do you use? There are some CRM's that have reporting that show 'cost per lead,' however - with their being duplicates (i.e. the lead first came in via dealer website to then convert on an OEM site) it might not be 100% accurate. That being said, we took the leads - duplicate or not - and divided it by the total cost. We then took all of the sales that were associated with the lead source and divided the front-end gross vs. the cost to see what the actual ROI was for the lead source. 

Daryl Sanders

BDC costs related to lead costs/appointment show costs/sales costs - is a number that must be understood.  When the BDC gets a show and the sales people take over and close the sale (getting a full commission), the total costs to get that sale can get out of hand in a hurry.

I would like to stir up more discussion about recognizing these costs and consider alternative ways to get these functions done and the best way to pay for them.

Mark Rask

This willbe interesting data

Daryl Sanders

It is not rocket science, personnel costs, including benefits etc. divided by leads.  Not even considering overhead, computers, rent etc.  I have seen costs around $45/lead


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