In my last article I wrote on many of the benefits of a Business Development Center.
Many of the dealers and managers I have spoken with because of that article voiced common concerns. As a result I have decided to repeat the answers in this issue.
Additionally, I would like to respond to the variety of comments I have heard and read since my last article; specifically, with regard to why Business Development Centers fail. I do not believe Business Development Centers fail. I believe people fail. The concept and idea of managing the database of people who call and or visit your dealership can hardly be questioned. Additionally, the development of sound relationships with these customers and or prospects is certainly the correct thing to do.
The inference that Business Development Centers could fail is simply an attempt to transfer responsibility. I believe that when a dealer is being told the Business Development Center is not working, the dealer needs to question the manager's commitment. In the normal course of action, the Business Development Center brings a new level of accountability for all individuals who interact with customers. I believe there are many people out there who would sacrifice business development and improvement before accepting additional accountability.
There were many other questions, such as:
"How many people do I need?" Before this question can be answered you will have to decide what elements of the Business Development Center concept you will utilize. I do suggest you start small and monitor the department closely.
"How should I pay these people?" I suggest you create a pay plan that combines salary with a small bonus for appointments that show, with an additional bonus for appointments that result in a deal. With regard to those dealerships that decide they want to have all inbound telephone traffic (phone up's) handled by the Business Development Center, I suggest a more aggressive pay plan. Extreme caution must be taken if a person is hired to do both business development and phone up's.
"Who should they ultimately report to?" I suggest the department report to the general manager. The reason for this is that the department will, in its natural course of business, be cultivating business for all departments. It will also identify concerns that the general manager should receive directly.
"What is the best way to implement the concept?" Slowly. Very often the decision is made and the race is on. I suggest you plan the phases and monitor the department closely. When done properly, the growth will be natural.
"What type of office space is necessary?" The choice is yours. The department does not need to be on the showroom floor. Actually I feel it should not be. A comfortable back room large enough to handle the staff is fine. If the dealership has multiple buildings, feel free to use any space available. Aside from the typical needs such as lighting and phones, outside noise and interference should be avoided.
There was much conversation regarding the database from my article in the last issue. While the concern was voiced in a variety of ways, it boiled down to this: "Before I could even consider a Business Development Center, I would have to settle the issue of how to manage the data."
The database is a crucial part of a successful Business Development Center. The basic problem has been how to get the information into a database with the least amount of effort, and what database software to use. Many dealerships have invested considerable amounts of dollars and energy in computer systems such as ADP and Reynolds & Reynolds. I was surprised to hear many of the dealers tell me that they were told their main frame system could not fit their needs for building a database. I do not agree. I have seen both ADP and Reynolds & Reynolds work well. They would not be my first choice for this application, but for many dealerships, that choice has already been made and systems installed. They can get the job done.
The difficulty in getting information in and out of many computer systems has been a major frustration. Additionally, many of the in-house computer systems do not offer the address checking abilities which enable the dealers to get the very best postal rates. Some let you print address labels. However, they do not print barcodes and postal forms. Please note that this becomes more important as the database grows.
Personally I like to use off-the-shelf programs like Act or Goldmine. They can be purchased from most software stores and used on most PC's. With regard to getting information into the database, technology has brought us some exciting changes. Today getting information into the database is easier and simpler than ever. Monitoring telephone and walk-in traffic is also easier than ever before.
Let's talk about telephone traffic, both inbound and outbound. Today this is a snap. The newest technology allows you to have your telephone traffic go directly to your computer. Additionally, if the caller is in your database, you can program the computer to pop up a screen that tells you all about the caller and their vehicle or needs. The driver for this technology is caller-id. Essentially, the systems I am referring to are like caller-id on steroids. If total control of telephone and walk-in traffic is what you are looking for, I suggest you investigate these programs.
In closing I would like to suggest the dealers who do decide to create a Business Development Center stop discussing the department with outsiders. One of the exciting missions of the Business Development Center is developing an edge over the competition. Essentially you are looking to establish a database which will enable you to market with precision to customers of your competitors. You are looking for a two-to three year jump on them. Wouldn't it be nice if you had most of your competitor's customers in your database before they realized what you were doing?