Why Do BDCs Fail?

Many dealerships simply do not have the knowledge or experience to roll out, or implement a BDC. With all of the variations and pieces, it’s no wonder that the task is overwhelming and unfamiliar to most people. Due to that circumstance, some dealerships won’t even take a shot at it. However, if done correctly, a BDC can generate substantial business and profit for the dealership. By partnering with an expert that specializes in Sales BDC, you will take the guesswork out of starting a BDC and drastically increase the profitability of success the first time around.

Wrong Idea About what a BDC Really is

Some dealerships fail at BDC because they don’t have the concept of BDC right. They think that all BDC entails is having a room of computers with bodies to fill seats. Many have the wrong people in place because they don’t understand the true profile of what it takes to be an effective BDC rep. Others don’t truly understand the BDC ecosystem and how it needs to all work together collectively and interdependently. The first step in starting a BDC is understanding what it is, and identifying which pieces of BDC your particular dealership wants to engage in.

Wrong Infrastructure

Another reason BDCs fail is because they don’t have the appropriate infrastructure. Their department is filled with the wrong number of people, the wrong type of people, along with the wrong setup, resources and expectations. The infrastructure should be based on lead volume, the areas of BDC your dealership participates in, or wants to participate in, and should all be derived from the goals of the dealership. Unfortunately, there is usually no real logic in how the BDC infrastructure is designed, which puts the BDC at a major disadvantage.?

Under Resourced

The BDC has way more opportunities and activities than the showroom,?yet has less money and resources allocated to it. This may be derived again from the fact that the dealership may not truly understand the purpose of the BDC and how it should be setup. The dealership may have a BDC just to be able to say that they have one, but resources are usually limited from the start. Again, there are too little people, wearing too many hats, so they can never really specialize in any one category of BDC, which usually translates to a subpar BDC agent. Also, the CRM is generally a mess and there is a lack of leadership, or the wrong BDC manager in the position.

Lack of?Automotive BDC Training

BDCs can be intricate depending on what level a dealership wants to play at, yet most dealerships don’t invest in training their people. They spend approximately $64,000 a month to drive traffic to the dealership, only to send that traffic to untrained automotive professionals. They don’t know what to say, they lack scripting for guidance, they don’t understand the true road to the appointment process, they don’t have the phone skills to overcome objections, the don’t have a TO process, or national benchmarks and KPIs to compare their results to. A profitable BDC require all team members to possess communication, engagement, followup, phone, text and social skill to excel in their role.