I’m a bit dumbfounded as to why a modern auto retailer would still use a sales BDC.
Think about it. BDCs withhold information to try to secure an appointment. Not because they are nefarious. They just don’t have the answers.
- “Does my daughter qualify for a first-time buyer’s program?”
- “How long is that incentive on?”
- “What is my trade worth?”
If sales BDCs could answer commonly asked questions, such as these, they would be salespeople, not appointment setters.
A bit of history: Sales BDCs came about for a good reason. Most dealerships’ best salespeople did not have great phone skills. Their primary skill set was “eyeball-to-eyeball”, and they had high energy and great persuasive skills. However, those skills didn’t transfer well when it came to handling incoming calls. They also, typically, lacked excellent organizational skills, so their follow-up was iffy.
BDCs were created to augment the sales pro’s skill set.
But the market has changed and very few prospects walk into a dealership without contacting them first. It is estimated that 80% of prospects contact your dealership by phone/internet/ text/chat before coming in. Your best salespeople should be their first point of contact – salespeople who will make the best impression – who are great on the phone and have the full product knowledge to handle those leads.
Why pay two people to sell one car (especially in an era of margin compression)?
The Rikess Group model has a separate sales department manned by real salespeople who have the right skill sets to handle remote leads. This group is well-trained to have excellent product knowledge and the ability to signal transparency – trading information to get an appointment.
Ideally, over time, the mix of your sales department will be at least two-thirds highly trained to handle remote leads – and making in-person appointments for themselves.
This model is not just more customer-friendly and results in more sales, but is lower cost.
You eliminate the BDC expense (about $100 per car sold) and you need fewer managers. This is because this is an empowered sales group, typically with a limited negotiations model, who can “desk their own deals.” Thus, needing less management.
Our largest client has 25 salespeople in this department and only 1.5 sales managers. Call it the Amazon model. To become an online retailer who occasionally sells a car to a “cold walk-in.”
It is important to note that the best way to create a great process is by starting with the customer. The better you can fulfill their needs and desires the more cars you’re going to sell.
Simply put, if you personally called a local retail establishment and asked about product availability and pricing and their answer was, “you need to set an appointment and come down to see us for that information,” would you hop in your car and drive to their location? I doubt it. But, that is what you’re asking your valuable prospects to do.
If you’d like to discuss this article in more detail or set up a webinar to learn more about The Rikess Group’s lead handling strategy and training, let me know. It is a lower-cost, more customer-centric method for converting leads to sales. Email me at manderson@rikessgroup.com or call me 404-805-5009