By Christine Beougher, Director Digital Strategy & Sales, Digital to Dealer Direct
While digital marketing has taken the world by storm over the last decade so has the rise of the BDC in car dealerships. For the average-sized dealership, having a BDC usually involves two to three employees handling all incoming calls and leads while handling follow-ups and setting appointments. That number increases to seven or eight people for larger dealerships selling over 250 cars per month. Running a BDC brings both challenges and rewards, leaving the average to small-size dealership to question if it’s really worth it.
As a former BDC manager of a very busy dealership in the New York metro area, who has now returned to automotive advertising, working hand-in-hand with many BDCs from across the country, I’ve seen both sides of the coin.
Since many dealerships struggle with the decision of whether to BDC or not to BDC, following are some pros and cons to help with making that decision.
CONS
If not set up properly, the handoff from a BDC to a salesperson on the showroom floor can become sloppy, creating confusion and mistrust right off the bat with the customer.
With all the dealerships out there, it can be difficult to staff the right people and keep those you’re able to find.
Cost is sometimes a factor since hiring dedicated BDC staff isn’t always an option and stretches the budget in smaller dealerships.
Now, let’s dive into some of the pros.
PROS
Without a BDC, a dealership must rely on the sales staff to answer and follow up on leads. When the showroom is busy, it’s better to have a dedicated team to rely on so you can ensure your leads are responded to in real-time.
Along the same lines, a BDC employee’s entire focus is to answer leads and generate appointments for the dealership. When leads are assigned to the sales team, it often gets put on the back burner when other things are happening in the showroom.
When handled properly, a BDC department can bring in hundreds of appointments every month. These numbers are based on how many people you have working in your BDC. For help in identifying what your BDC can handle, Digital to Dealer Direct put together a plug-in formula.
Another pro to having a BDC department is that your BDC manager can help spearhead marketing plans, website changes, and oversee the ROI on your advertising in real-time as leads come through your CRM system.
Alternatives – Outsourcing Your BDC
Many companies have been created to try to solve this very issue for dealerships. However, most of the same things come about as we discussed in the cons of having a BDC. Typically, these off-site BDC companies charge either by the hour or a flat fee based on the amount of staff needed to service your dealership. This can end up costing the same or more than hiring your own small team.
Additionally, you still run into the problem of the handoff. Now, the BDC person they became comfortable with doesn’t even really work there. At least with a handoff in your store, the BDC employee can meet the customer and introduce them to their salesperson.
That being said, if you find a good off-site company, it can work. If you have dedicated people handling your leads, you don’t need to rely on your team who are working on the floor and could get pulled away at any time for a sale.
Takeaways
While starting and maintaining a high-performing BDC certainly requires an investment, it can pay off significantly, with the pros far outweighing the cons.
With an in-house BDC team, you will get dedicated staff to handle leads, someone to oversee marketing, and a touchpoint for the shopper who comes in off one of those leads. As we know, first impressions go a long way.
As an alternative, you can hire an off-site BDC team, if you find a reliable and affordable option. This gets you the dedicated team which is vital.
Whether in-house vs outhouse, a dedicated BDC team is vital in today’s market where it’s all about efficiency. You want to make sure your dealership is the first to respond to that customer’s inquiry and do so the right way!
Don’t miss Christine Beougher’s session, “How to Use Google’s New Features to Attract Users to Your Showroom” at Digital Dealer 27 Conference & Expo (August 19-21, 2019, Las Vegas)!
Christine Beougher has spent the last 13 years strategizing, executing, and optimizing digital campaigns. She is certified in a variety of digital tactics including SEO, SEM, social media, display advertising, email marketing, and mobile advertising.