Sales & Marketing
Your Business Development Center Forecast
By Forrest Scott
That's right, the Business Development Center (BDC) should have prepared a forecast just like every other department in your dealership. Actually, most BDCs do not prepare forecasts, but they should. The BDC manager should be the person who prepares and submits a written projection and plan for the year.
The typical response regarding forecasting for the BDC is that it is "too difficult" and "unnecessary." This statement is usually made by people who view the BDC mostly as a support function. Additionally, I am often told that the actual departments do their forecast, so why should the BDC?
The primary reason the BDC should perform its own forecast is accountability. Since BDCs are not always the same, I will give a few examples to illustrate the need for BDC forecasts.
1. The BDC is a department, which obviously needs a budget. This budget may include payroll, equipment or physical space. Regardless of the reason, the BDC manager should project and justify the departments' needs. By creating a forecast, the BDC manager is forced to look into the future to determine needs and state these needs now.
2. If the BDC is handling in-bound telephone calls, the BDC manager should document the previous year's performance and forecast the next year's performance. Like all departments, you would like to anticipate improved performance since the department is now experienced. Performance areas such as appointments set and appointments kept should be monitored closely. By having these numbers forecasted, you now have data to review when attempting to assess the BDCs performance.
3. Showroom follow-up should also be a part of the forecast. Areas of interest should be unsold customers who the BDC contacted and were successful in setting return appointments. Were percentages everything you hoped they would be or are you looking for improvements this year? Were you completely satisfied with the percentage of contacts made last year or are you looking for increases this year?
4. Did the BDC perform service follow-up calls to all customers, warranty and customer paid? If not, are you looking for the BDC to handle this now? Part of the forecast should be the BDC's percentage of customers reached as well as the success ratio of visiting owners and high mileage vehicle owners who the BDC was able to convert to prospects. If the BDC is not currently calling service customers and your intentions are for this to happen, you will naturally need to address the BDC budget.
5. Did your BDC manage direct mail and e-mail marketing campaigns last year? If not, are you looking for the BDC to accomplish this now? Depending on the size of your dealership and the amount of mail you intend to send out, you may have to address the BDC budget.
6. Did the BDC manage or handle any part of the CSI process this year? If not, are you looking for the BDC to handle any part of this now?
7. Will the BDC be in a position to accomplish its goals with its current staff?
8. Does your BDC currently manage the Internet leads? If not, are you looking for the BDC to handle this now? Depending on the size of your dealership and the amount of mail you intend to send out, you may have to address the BDC budget.
As you can see, there are many aspects of the BDC that can be addressed in a forecast and yearly plan. Without a forecast and a plan you will find it extremely difficult to measure the performance of your BDC. Additionally, you will be forced to wonder if your BDC is performing as it should. By reading the examples outlined above, you can see that much of the measurement and planning is related to budgets, people and performance. The fact that the BDC is not actually the ultimate revenue producer is of no consequence when it comes to forecasting and planning. The issue is simple; you can't manage what you don't measure. One of the primary reasons the BDC was installed was to increase the levels of accountability, and the BDC, like all departments, should be accountable for its performance.
Forrest Scott is president of Dynamic Marketing Strategies Inc. fscott@dealeronline.com
