If your reason for creating a Business Develop-ment Center (BDC) is to seriously impact sales and service, with the ultimate goal of dominating your market, tightening up security should be a major part of planning your center.
Many dealers and managers exchange information about their plans to create a BDC. Worse is when dealers discuss and allow visitors into their center. It's not that I want to be antisocial, it's simply my belief that the BDC is a part of a dealer's long-term strategic plan. As a result, I do not believe it is in the dealer's best interest to share this type of information with anyone outside the dealership.
Aside from the almost immediate advantage a dealership experiences with regard to customer follow-up and handling, the ultimate goal is to develop a competitive advantage in the marketplace. By revealing a dealership's plans or actions regarding the creation or existence of a BDC, you jeopardize the strategic advantage portion of the BDC concept.
Very often I hear that the dealership which received information regarding another dealership's BDC is actually a significant distance from the original dealership. I have received countless calls from dealers who have heard their neighboring dealer has installed a BDC and they now feel they will not be able to remain competitive if they don't install one as well. The good news is that another dealer would like to retain our services. The bad news is that the original dealer has lost the edge they thought they would have. Extreme caution should be taken any time the BDC is discussed outside of the dealership. Sometimes a trainer or consultant uses your dealership as a reference. Even though you may be asked first, the likelihood is, you do not know everyone they know. Even though a dealership may be states away, you can not be sure they are not friends with one of your competitors. They may not even realize the damage you could be subjected to.
It should never be forgotten that the BDC is charged with the responsibility of maintaining a file on every customer of the dealership, regardless of where they purchase. This file is designed to maintain information which could prove extremely valuable, such as buying cycles and/or buying habits. If the purchase was actually a lease or smart buy we need to capture the term. Additionally, the BDC team will attempt to gather information relative to other drivers and/or vehicles in the household. Very often a salesperson loses a deal and drops the customer. Dropping a customer reduces the salesperson's chances of selling the customer another vehicle and also reduces the salesperson's ability to sell to other members of the household. The BDC should attempt to find out how many drivers and vehicles are in the household, and who will be next to purchase.
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. fscott@dealeronline.com