A business development center (BDC) needs to be run just like any other department in the dealership. BDCs are tools that should generate profit and not be looked at as a “necessary evil” that creates more expense. There are many factors to consider if you are planning to install a BDC. Some considerations are software, personnel, facilities, hardware, phone systems and costs. However, the number-one factor that should be considered is whether to set up and maintain an in-house BDC or outsource to a call center.

Outsourcing a BDC’s responsibilities can have a huge upside if done correctly. A quick Google search reveals many companies competing to gain more market share of this growing segment of the dealership world. A good outsourced call center (OCC) should meet certain criteria:

• Is the OCC experienced?
• Do they have references you can call?
• Does the OCC have an exclusive outside sales representative assigned to your dealership?
• Does this rep have your best interests in mind?
• Will they modify programs if you request it? If so, is this expensive?
  What type of software do they use?
• How are reports generated? Are all leads tracked and put into reports? How timely is the information? How effective are their reporting methods?
• What are the costs associated with this OCC?
• Do they understand the auto industry and have product knowledge?
• Do they have the ability to speak Spanish?
• Sometimes I wish we had a cookie-cutter mold of organizations to work with in our industry, but the truth is all stores are different. Dealers are at different levels; therefore, a real in-depth analysis must be done to find out which direction is best. There are many items to consider before outsourcing. Some of those things include:
• How much volume does your store do?
• Do you need a full-blown BDC department or can one person handle all tasks?
• How many leads are you currently generating, and where are they coming from?
• What follow-up is being done now?

The list can go on, but I think you get the idea. The concept of a BDC makes sense; however, trying to implement this concept into reality can be a grueling task that can swallow a lot of hard-earned dollars. Many dealerships have thrown a lot of money away developing in-house departments that have had limited (if any) success. I salute these dealerships for their effort, if nothing else, but I bet they wish they could have a do-over.

If a dealer is going to make a commitment to install an in-house BDC, then I highly recommend utilizing some of the growing, specialized BDC companies to help set it up right. Don’t throw away good money on bad systems. Many dealerships have seen their business double, triple and quadruple as they have implemented solid BDCs in their stores. If utilized correctly, and I put heavy emphasis on “correctly,” this department can change the whole landscape of a store.

Amazingly, in today’s market, there are still a lot of dealers who spend an absurd amount of money each month on advertising that is untracked. Think about this for a minute. Every area of a dealership is measure and monitored. Focus is put on utilizing systems, processes and procedures to help close the sale. Expenses are kept as low as possible. Personnel are tracked, measured and monitored in an effort to sell more vehicles. All of this is in place, yet a dealer will throw $50,000 (give or take) at advertising and not even have the foggiest idea if this money is working or not. This is insane! With an effective BDC or OCC, a dealer will know exactly what is working and what’s not. Money allocated for advertising is used much more wisely. When set up and run correctly, these centers generate tremendous profit for dealerships.

Whether a BDC or OCC is used, clear and precise goals must be set. These can be more and better appointments, higher grosses, better CSI, and even more service drive traffic. This department must be run just like any other department in the store. The Business Development Manager (BDM) should report to the GM or dealer. Keep the sales managers and sales staff away from this department. The purpose of a good BDC or OCC is simply to set appointments; do not try to sell products over the phone. If this department is outsourced, make sure a competent in-house manager still supervises call activities and is held responsible for the results. Time frames should be established with respect to measuring results. Set goals, put a plan into place to accomplish the goals and set a time frame by which to measure the results.

The bottom line: there are advantages (and disadvantages) with internal and external systems. Each dealership needs to do an analysis to choose the best system. If an internal system is utilized, you must have good training programs and good pay plans (I recommend an hourly rate with bonuses for appointments and closed deals), and utilize a good software system. For an external call center, make sure your ROI is where you want it. Don’t enlist an OCC and walk away; this is a trap too many dealers fall into. Your money will not be utilized at 100 percent if you do this. Remember, you have to “inspect what you expect,” internally or externally.

Do a careful analysis and choose wisely. As the market becomes more and more competitive, good systems are becoming crucial in handling advertising, taking incoming calls, following up and maintaining your current customer base.