Kathy Kimmel, Cars.com

Staffing for Online Sales SuccessIs a BDC Right for You?

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Your Host for Today’s Call

Kathy Kimmel• National training manager for

Cars.com, consulting dealers on internet advertising and sales processes

• Former BDC manager for two AutoNation Mercedes-Benz stores in Illinois

• District sales and service representative at DaimlerChrysler for 10 years

Agenda

In today’s call, you’ll learn:• What is a BDC• How to determine if a BDC is right for you and what

other options you may want to consider• The pitfalls to avoid in establishing a BDC • How to track results, measure success and refine

processes

What is a Business Development Center?

BDC• Emerged in the mid-

1990s• Distinct telemarketing

department• Responds to phone

and email inquiries• Manages inbound and

outbound phone calls to set, confirm and rebook appointments

How are BDCs Used?

BDC staff is trained in phone and email skillsCall scripts and email templates provide for consistent, controlled customer interactionsIn addition to prospects and appointments, BDC staff can manage other customer interactions:• Unsold showroom traffic (UST) • Lease maturity• New model introductions and dealer events• Customers nearing time for repurchase• Customer satisfaction• Service reminders

Why are BDCs Used?

In an average showroom:• 75% of prospects are not asked their names• 97% of sales associates do not set an appointment• 98% of incoming call prospects who set an

appointment do not show up

Why are BDCs Used?

BDCs help you to:• Consistently and effectively manage sales processes • Reach sales and marketing objectives• Manage prospects• Drive profitability and retain customers• Capture data to improve processes

To BDC or Not to BDC?

BDCs are not a one-size-fits-all solutionThere are many factors to considerDecision must be evaluated based on your store’s• Culture• Process• People• Sales goals• Available capital

Weigh the Pros and Cons

Pros:Staff has the skills to get the appointmentPerformance is highly monitored Longer customer communicationCan reduce the number of sales associates

Cons:Must invest capital to get startedNeed to hire trained associates with a new skill setMust create scripts/ templates, establish “steps to a call”Must have long-term commitment

Establish BDC Objectives

Typical objectives include:• Gather customer information • Schedule and keep appointments • Increase store traffic and sales • Manage prospects• Maintain customer relationships• Increase customer satisfaction

Appointments

UST

Email requests

Inbound calls

CSI• Will they get paid?

• Increases shows

• Sales must keep good notes

• How will they be dispersed?

• What are your hours?

• Should they send follow-up letters too?

• Should they send an email reminder too?

• Sold/not delivered?

• Are there templates?

• Is product knowledge required?

Evaluate what projects a BDC would manage

Determine BDC Scope

Consider Upfront Investment

Workspace for BDCOffice for BDC managerComputers and high-speed internet accessCRM systemTelephones• Headsets• Monitoring equipment

Toll-free numbersAutomatic call distribution system

Define BDC “Must Haves”

Sales management must:Establish an operational budgetProvide capital for network and store infrastructureBe committed to the BDC structure for at least 1 year Write scripts/set “steps to a call”Meet weekly with BDC and sales managersCreate a process-oriented sales department that will track all prospects

Establish Good BDC Communication

Include BDC manager in weekly manager meetingsInvite BDC manager or associates to attend weekly/daily sales meetingsKeep BDC team informed on current incentives

Determine BDC Staffing Needs

5+151+

3-5101-150 cars

2-351-100 cars

1-2Up to 50 cars

BDC associatesMonthly sales

BDC Staffing: What People Will You Need?

The BDC manager role:• Manages BDC operations• Hires, motivates and develops BDC personnel• Maintains open interdepartmental communications

Recommended skills:• Strong communication and interpersonal skills• Leadership• Automotive knowledge• Problem solving abilities• Call center management experience

BDC Staffing: What People Will You Need?

BDC associate role:• Manages inbound calls and internet prospects• Provides general information to car buyers while

scheduling customer appointments• Manages outbound follow-up calls and emails

Recommended skills:• Sales-focused and goal-oriented• Good phone voice and phone skills• Ability to quickly learn scripts, product information• Telemarketing, sales or performing arts background• Attention to detail and good follow-through

BDC Staffing: Set the Pay Plan

Start with your total compensation in mindManagers and associates are compensated based on:• Salary • Per appointment• Per sale• Customer satisfaction

Also take into account:• Monthly incentives• Minimum requirements

BDC Staffing: Provide Training

Basic phone skillsScripts/“steps to a call”Personalizing templates

Address prospect’s questions and concerns

Overcoming objectionsPrice requestsTrade-in values

Product knowledge

Evaluate Your BDC Metrics

Leads received vs. appointments madeAppointments made vs. appointments keptLeads purchased vs. vehicles soldLead sourceNumber and percentage of sales generated from the BDCAverage gross on BDC-generated sales vs. showroom teamCustomer satisfactionCalls per day

Are You Getting the Most Out of Your BDC?

Key questions to ask after implementation:• Is there really buy-in from all managers?• Do showroom and BDC processes align?• Are BDC associates consistently using appropriate

email and phone processes? Are they consistently following up with car buyers?

• Check your pay plan: Are BDC associates motivated to deliver results?

• Check your staffing levels: Do you have too many or too few associates?

BDC Alternatives

Use Existing Sales Associates

Sales associates assigned to the BDC on a preset scheduleBDC manager reports to GM and monitors associates while working the BDC

Pros:Equal opportunity for prospectsRequires no or few additional peopleBuilds good work habitsEasy to add other types of customer calls/emailsIdeal for smaller stores

Weigh the Pros and Cons

Cons:Sales associates may lack phone and email skillsAccountability: Difficult to track individual follow-upSales associates may not feel comfortable in this environment

Establish an Internet Department

Dedicated sales associates manage internet phone calls and emailsFloor staff continues to manage walk-in traffic

Pros:Ideal for larger stores with additional resources to dedicateBest associates are dedicatedAccountability: Easy to track follow-up for internet prospectsAssociates become experts

Weigh the Pros and Cons

Cons:Potential for conflict with floor sales associatesSales managers don’t have time to fully manage customer interactions

Outsource a BDC

Third-party company provides call center facility, infrastructure and highly trained associates to manage incoming/outgoing phone calls and emails

Pros:No capital costsQuick time-to-marketCall center agents specialize in sales, customer retentionCost controlStaffing flexibilityMulti-lingual supportAccountability

Weigh the Pros and Cons

Cons:Agents may lack automotive or specific vehicle knowledgeAgents may not understand your brandPossible inability to monitor customer interactions

Review

A BDC may be a good option to help your store increase sales, more effectively manage prospectsA BDC is not a one-size-fits-all solutionShould you implement a BDC, you’ll need to set objectives and manage against those goalsBDC alternatives may work better for your store, given your culture, processes and budget

Register Now for Our Next Event

The Secrets of Their SuccessTop Performing Dealers• What sales processes and

online media mix do successful dealers use

• When is the best time to respond to a lead

• Why the internet plays an increasingly important role in selling cars

• How internet advertising brands your store and drives walk-in traffic

Friday, April 13, 2006

Noon ET

Register at:

http://dealeradvantage.cars.com

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• Dealer solutionsCheck out the latest tools to maximize your online sales

Questions & Further Discussion

Thank You & Good Luck