BDC Best Practices

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The industry’s new car dealerships spend over a billion dollars a year on training. But only about 25% of training programs produce measurable improvement-like more profit. A good portion of that is spent on sales training, yet there is a 67% turnover rate in sales positions, excluding managers and GMs, where the turnover is much lower, at about 16%. 

We believe it is just as important to coach, practice, and mentor employees as it is to conduct training. 

With a 25% take rate, it is obvious that training is not enough. It takes coaching, practicing, and mentoring to achieve mission success. 

It should not be surprising that training alone is not enough. Humans forget about 40% of what they learn in 20 minutes and 64% after 9 hours. (yikes) 

This three-part post will explain the differences between training, coaching, practice, and mentoring, as well as some best practices we have found. 

Let us start with how each of these activities is different. 

Training has an organizational goal in mind. “We need our people to be better at X.” The dealership hopes the training will improve skills and increase efficiency and effectiveness in a specific area. Everyone gets excited (on the management team) that this is going to fix a problem.  

The training gets scheduled. It may be an expert coming in to present or the project is delegated to someone internally. The training itself is unidirectional. A transfer of knowledge. Usually presented to a group, the process assumes everyone is on the same level skill-wise and delivers the same experience to the group. 

(This reminds me of my mother’s stories about grade school in the 40s. 1st through 6th grade students were all together. It is easy to see the flaws in that system.) 

The biggest threat to training success is the intrinsic motivation of the people in the training. The employees hold the key to success. Training cannot achieve the anticipated results if employees do not see it benefiting them personally. 

The second biggest threat is the employee’s supervisor.  

“If supervisors are not engaged, why did you bother to have the training? Total waste of time, effort, energy, and money.” 

Actions by an employer’s direct boss before, during, and after the training have a lot to do with mission success. The employee is going to follow their managers’ lead. Frankly, the managers should be the experts. They can train, coach, practice, and mentor their employees. 

Coaching is more directed to the employees’ goals as opposed to those of the dealership. Of course, the employees, or most of the employees, want the dealership to succeed, but that must be put in the context of their work experience and what is in it for them. 

Coaching is one on one. This shows the employee that the dealership values them and addresses the aspect of personal motivation. The experience of being coached is more direct and personal. Instead of the company voicing an overall improvement, coaching identifies what needs improvement at the individual level. The impact of coaching is greater than the impact of training, but training is still important because it provides the knowledge and the desired outcomes. 

Practice is essential. It amazes me that dealerships will “train” a new salesperson and send him or her out to “practice” on real customers. Or spend $15,000 on a training program and send them out to the showroom to see how they do. 

Furthermore, the idea of practice is key to people at the highest level of any profession. There is no better example than professional athletes. Tom Brady practices. Serena Williams practices.  

Not coincidentally, practice is usually held by the coach! 

If repetition is the mother of learning, then practice fosters success. 

Mentoring is when someone shares their skills, experience, and knowledge to help another be successful. Unlike the coach, who is mostly focused on skills and behavior, the mentor takes a more comprehensive approach and sees the employee as they can become. 

Mentoring is less rigid than coaching. Mentoring does not require a set schedule or a list of repetitions to practice on.  

I see mentoring quite a bit at the upper leadership level, but not so much at the entry level. People getting started or learning something new need mentors too. To encourage them and celebrate with them when they succeed. 

Next, we will look more closely at coaching, the attributes of a great coach, the coaching process, and best practices. 

For more information on our coaching drop us a line at letstalk@myallcall.com or check out www.myallcall.com/my-bdc-coach/ 

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Frequently Asked Questions

1. What is a outsource BDC?

A BDC (Business Development Center) is a dedicated team that handles customer communication, including sales leads, service appointments, and follow-up activities, on behalf of car dealerships.

2. Why should I outsource my BDC?

Outsourcing your BDC allows your dealership to focus on core activities while professionals handle customer interactions, leading to improved efficiency, higher lead conversion rates, and better customer satisfaction.

3. What services does your BDC provide?

AllCall offers premium managed services such as inbound and outbound call handling, outbound campaigns, lead management, appointment scheduling, customer follow-ups, service reminders, and more.

4. How do you integrate with our dealership’s CRM?

We work directly in your CRM any time we interact with your customer.

5. What are your hours of operation?

AllCall operates 24 hours a day.

Sales-Related Questions

1. How do you handle incoming sales leads?

We promptly respond to incoming sales leads, qualifying them based on your criteria, and then schedule appointments or transfer them to your sales team.

2. Can you handle internet sales leads?

Yes, we handle internet leads by responding quickly to online inquiries, providing information, and scheduling test drives or sales appointments.

3. How do you qualify a sales lead?

We use a set of customized questions to assess the customer’s needs, budget, and readiness to buy, ensuring only qualified leads are passed to your sales team.

4. Do you handle follow-ups on unsold leads?

Yes, we follow up with unsold leads at regular intervals to keep them engaged and guide them through the sales process.

5. Can you manage our dealership’s online chat?

We have our own chat platform we would recommend for managed chat services.

Service Department Questions

6. How do you schedule service appointments?

We schedule service appointments by accessing your service scheduling system, ensuring availability and coordinating with your service advisors.

7. Can you send service reminders to our customers?

Yes, we would automate messaging from your scheduler.

8. How do you handle service follow-up calls?

After a service appointment, we contact customers based on our clients needs. It could be a CSI call or a thank you call for example.

9. Do you handle recall notifications?

Yes, we notify customers of recalls, explain the importance of addressing them, and schedule the necessary service appointments.

10. Can you manage extended warranty sales?

We can make calls to candidates and schedule an appointment with your F&I department.

Customer Communication & Satisfaction

1. How do you ensure quality communication with our customers?

We have a full-time Quality Assurance Manager and agent call quality is tied to their pay.

2. Can you handle customer complaints?

Yes, we are trained to manage customer complaints with empathy, escalate issues when necessary, and work towards a resolution.

3. How do you measure customer satisfaction?

As an extension of your team.

4. How do you handle no-show appointments?

We follow up with customers who miss appointments, offer to reschedule, and remind them of the importance of keeping their appointments

5. Do you provide outbound marketing calls?

Yes, we can execute outbound marketing campaigns, such as special promotions, seasonal offers, and customer retention initiatives.

Training and Quality Assurance

1. How do you train your BDC representatives?

Our BDC representatives undergo rigorous training, including product knowledge, customer service, communication skills, and dealership-specific protocols.

2. What quality control measures are in place?

We monitor calls, review recordings, and conduct regular performance evaluations to ensure high-quality customer interactions. Agent pay is tied to their performance.

3. Can we customize the scripts your agents use?

Yes, we can work with you to create customized scripts that reflect your dealership’s brand and messaging.

4. How do you handle high call volumes?

We have a scalable team that can handle high call volumes during peak times, ensuring no customer is left unattended.

5. What is your average response time for inbound calls?

Our desired service level is 80% of calls answered within 20 seconds.

 Technology & Integration

1. How do you integrate with our dealership management system (DMS)?

We work with Dealer Vault to sync by using an API with our BDC Software (Volie).

2. Can you provide reporting on BDC activities?

Yes, we provide detailed reports on call volumes, lead conversion rates, appointment schedules, customer satisfaction, and more.

3. What security measures are in place to protect customer data?

We follow industry best practices for data security, including encryption, secure access protocols, and regular audits to protect customer information.

4. How do you handle communication across multiple channels?

We use an omnichannel approach, managing communication through phone, email, SMS, and online chat to ensure a seamless customer experience.

5. Can you integrate with our dealership’s website?

Yes, we can integrate with your website to manage leads, schedule appointments, and provide live chat support.

Pricing & Contracts

1. How is pricing determined for your BDC services?

Pricing is based on factors such as call volume, services required, and contract length. We offer customized solutions to fit your budget.

2. Do you offer month-to-month contracts?

Yes, we offer flexible contract options, including month-to-month agreements, allowing you to adjust services as needed.

3. Are there any setup fees?

Setup fees may apply depending on the level of customization and integration required. We provide a detailed breakdown during the proposal stage.

4. How do you bill for your services?

We offer monthly billing based on the agreed-upon service package, with transparent invoicing that outlines all charges.

5. Do you offer discounts for long-term contracts?

Yes, we offer discounts for long-term contracts, providing cost savings for extended partnerships.

 Performance & Results

1. How do you measure the success of your BDC services?

Success is measured through key performance indicators (KPIs) such as lead conversion rates, appointment show rates, customer satisfaction scores, and ROI.

2. Can you provide case studies or references?

Yes, we can provide case studies and references from other dealerships that have successfully partnered with us.

3. What is your average lead conversion rate?

Our average lead conversion rate varies depending on the dealership and market, but we consistently achieve rates above industry benchmarks.

4. How do you ensure high appointment show rates?

We confirm appointments with customers, send reminders, and follow up to ensure they show up as scheduled.

5. What is your process for continuous improvement?

We regularly review performance data, gather feedback, and implement process improvements to enhance service quality.

Customization & Flexibility

6. Can you customize your services to fit our dealership’s needs?

Yes, we offer fully customizable BDC solutions tailored to your dealership’s unique requirements and goals.

7. How do you handle seasonal fluctuations in demand?

We adjust staffing levels and operational hours to accommodate seasonal fluctuations, ensuring consistent service year-round.

8. Can you support multiple dealership locations?

Yes, we have the capacity to support multiple locations, providing centralized BDC services for all your dealerships.

9. Do you offer multilingual support?

Yes, we offer multilingual support to cater to customers who prefer communication in languages other than English.

10. Can you integrate with third-party lead providers?

Yes, we can integrate with third-party lead providers to ensure seamless management and follow-up of all incoming leads.

Miscellaneous

1. What industries do you serve besides automotive?

While we specialize in automotive, we also provide BDC services for other industries such as real estate, healthcare, and retail.

2. How quickly can we get started with your BDC services?

We can typically get your BDC services up and running within [specify timeframe, e.g., 2-4 weeks], depending on the level of customization required.

3. What makes your BDC different from others?

Our BDC stands out due to our industry expertise, customized solutions, focus on customer satisfaction, and commitment to delivering measurable results.

4. How do you handle after-hours inquiries?

We offer after-hours call handling services to ensure customers can reach your dealership even outside of regular business hours.

5. What is the next step to partner with your BDC?

To get started, you can contact us for a consultation, where we’ll discuss your needs, provide a tailored proposal, and outline the onboarding process.

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