In 1987, when I set up my first Business Development Center, I felt a need for the dealership to do a better job of staying in touch with every person who shopped at the dealership. Additionally, I felt a need to better train the salespeople. Another concern, the quality of candidates for the open sales positions, was not what I hoped it would be-and when we did find quality candidates it was tough to keep them. To me it seemed the days of the professional automobile salesperson were quickly coming to an end. We wanted our salespeople to utilize their time better and the resistance was brutal. The salespeople would say they were making follow-up and prospecting calls; however, our own research indicated less than satisfactory scores in this regard. Yes, our salespeople called every customer who purchased a vehicle, but that was because we, as managers, insisted they do so. For the most part the motivator in this regard was CSI. As managers we tried to get the salespeople to prospect and call every customer who did not buy. We told them that if they would follow up their unsold customers they would significantly increase their deliveries. We tried to get them to answer phone ups better. However, when we would check them 90 days after their initial training, we found that they had gone back to many of their old habits. In spite of their successes the salespeople slacked off whenever they could. Was it that they were lazy? Did peer pressure win or did we, as managers, fail to insist they work the program long enough to change their less-than-desirable work habits?
Whatever the reason, it was obvious the system was not working. It seemed the harder we tried to train and increase the level of professionalism amongst the sales staff, the more they would resist. When I shared my frustration with other dealers, general managers, and sales managers, I found that they were equally frustrated. Everyone was long on frustration and short on answers. As a result of my frustration, I set up my first Business Development Center. The mission at that time was (and continues to be today) to increase the sales at the dealership by increasing the level of professionalism of those individuals who directly come in contact with customers and potential customers. My concept for the Business Development Center was to set up a department that would be committed to being proactive. Additionally, I wanted to utilize the center to train and educate the sales force about the benefits of being proactive rather than simply being reactive.
Essentially we, as managers, decided to lead by example. We no longer would simply tell the salespeople what to do, we would show and train them at the same time. A major part of my goal was to have salespeople graduate out of the Business Development Center. I didn't want to set up a department whose makeup was lifetime telemarketers, nor did I want to set up a permanent increase in overhead. This is why I feel it is extremely important to decide early on the functions you wish the Business Development Center to perform. While setting up a Business Development Center that essentially dominates all customer contact may appear to be good, I believe this concept will ultimately reduce the customer's perception of the dealership's professionalism.
Generally, the first step in planning is to decide in which area(s) you want the Business Development Center, for example, showroom follow-up, incoming sales calls, prospecting, etc. I suggest you begin the planning stage by creating a list of the areas you would like the Business Development Center to manage or assist in. As thought-starters, you might want to choose from the following:
Showroom (non-buyer) follow-up
Incoming sales calls
Lease and/or smart-buy follow-up
New and used vehicle sales follow-up
Orphan owner contact
Prospecting
Internet lead follow-up
Service customer follow-up
Yes, there are other areas the Business Development Center can assist and/or manage. However, careful thought should be given to these additions. It appears there is a new movement to expand the Business Development Center concept to sweep across the entire dealership. By doing so, the Business Development Center would control virtually every area of customer contact. In most situations I personally do not believe this approach is in the dealership's best interest.
The word is out. Business Development Centers can be a great way to both maintain and grow your business. If the installation is not planned and executed properly, however, the center will most likely produce less than satisfactory results. There is no doubt the Business Development Center concept is correct for our times. Allocate sufficient time for the planning process and carefully plan the installation. Too often the thought process is, "All we have to do is merge the Business Development Center into the sales process, utilize the newest technology, and bingo, we are there." It's not that simple. Dealerships, as true car people know, are made up of a wide range of personalities. You just don't interfere with the sales process without a careful review with the appropriate managers in the store.
Like any new venture, you must take the time to plan. The Business Development Center is no different-plan and install a Business Development Center properly and the rewards will be great.
Forrest Scott is President of Dynamic Marketing Strategies, Inc. If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3.