Direct Mail and the BDC

Even in 2015, direct mail is still an effective marketing medium that thousands of automotive dealerships rely on to generate new sales leads. Social media, television, email, and other targeted promotional channels may have for  the most part taken the 'lead' in terms of generating new dealership sales opportunities, but direct mail still produces results and is widely used.

Everyone knows the numbers - direct mail on average, should produce a 1%-2% response rate. So if you send out 5k pieces, at least 50 customers to respond - simple stuff. Having a strong offer and clear call to action (i.e. call now, sign up now, etc.) are the easiest ways to improve your response rate, but for the most part, you can expect the typical 1% - 2% average.

Smart dealers however, have figured out a way proven to increase that 1%-2% to a whopping 10% - 15%... got your attention?!

It's not complicated or even a secret: mail campaigns bundled with professional call management (in other words, a BDC), makes a simple buy-back piece goes from the boring to KAAAAAZZZING!

How's that you ask?

The BDC solves the main challenge that has been a huge problem in the industry and affects both dealers without a BDC and those with one equally:
1. Most sales reps don't have the training, skill or the time to handle even a modest call volume
2. Most direct pieces include a phone number to call the dealership
3. Those missed and mishandled phone calls equal lost revenue potential
4. The inbound calls represent only a small fraction of the total opportunities - most marketing companies can supply approximately 15% of the total mailer list with phone numbers. Follow up to leads that did not respond will provide the additional 9% - 14% response (average for a fully staffed & trained BDC team)
5. The bottom line, direct mail is marketing medium whose core equation for success is comprised of two parts - 1) a compelling offer/call to action & 2) the dealership lead to appointment conversion.

Without the proper resources with the right training & skills, you're missing half of the answer. The BDC is the solution to the second half of the equation.

In summary, by utilizing the BDC in conjunction with your direct mail efforts, you will: A) connect with and convert more of your leads into showroom traffic, B) increase the overall response rate to your marketing efforts, C) reduce your average marketing spend per vehicle sold, D) sell more vehicles.

Happy Selling!

by Don Queen, CEO
Dealer Force

Updates 6/27

• The Used Vehicle Plan document has been updated
• Added several new forum posts, including scripts and sample forms

Dealer Force Off-Site BDC

BDC Success: The Importance of Focus

Whenever I read a discussions about how a BDC should operate, it seems that there is always a difference in opinion about what the agents staffed in the center should be focused on and what their call goals should be.

Some believe the sales rep should still make the bulk of the phone calls; many have a BDC, while others even think outsourcing is the way to go. But there's even more disagreement regarding what their call focus should be: pricing, check inventory, set only appointments, be a super receptionist, etc.

So what should the agents be focused on?

BDC agent's act as the front line to your marketing efforts... Think of them as the glove in baseball - you have nice bats, snazzy uniforms, nice stadium, but if your team can't catch the baseball, what's the point???!! If you can't "haul-in" the lead... you get the point.

Our BDC agents focus on one thing - converting leads into appointments. They "sell" the appointments as opposed to the lot sales person that sells the vehicle. Different skills, different objective.

Each lead source will obviously require different call tactics: new Internet leads may require agent's to answer more questions about a vehicle, while unsold and sold leads do not; special finance leads may require a finessed answer about credit challenges, loan details, etc.

In most cases however and if at all possible, our agents don't mention or even talk about a vehicle - their focus is on selling the appointment. Think of it as an owner of a steak house - do you sell the steak in the window (raw meat), or do you open the doors and sell the sizzle (the aroma of the steak cooking).

Example of what I mean:

Customer: I'm interested in a used Ford Mustang...
Agent: Those are great cars, as a premier dealership, we get them in all the time! Is that the only vehicle your interested in? Do you need financing? Super, the good news is that vehicle and many others are on our managers special list, availability is strictly on a first-come first-serve basis, so if your interested in getting your best deal, you'll want to come in right away! I can set you up on a VIP appointment where you'll talk directly with my manager, is today or tomorrow better for you? 

The agent's focus is simple:

• Create excitement for the offer
• Create a sense of urgency
• Create a sense of exclusivity
• Ask for the appointment
• Stay away from selling the car over the phone

The management focus:

• Clearly define goals, performance expectations
• Measure results
• Train to sell benefits, the VIP experience
• Reward top performers

I think you'll find keeping your agent's focus on selling the appointment will help improve your lead-to-buyer conversion rate, fill your showroom with more traffic and keep management (and their buy-in) happy with the increased number of deliveries without having to spend a dime more in marketing and advertising.

Happy Selling!

   

Phone Skills 101: The Art of Closing

If you've been in sales for any reasonable amount of time, you probably have been told repeatedly that closing is the most important skill that you will need to learn to be a successful sales person. And it's 100% true. Sure, knowing your product, your customer and being able to present a solution with a clear value proposition are just as equally important, but the art of closing a deal is truly the quintessential sales skill.


When selling on the phone, there should always be a concise goal that every rep understands how to attain. Many times, managers are to vague in their direction and without clear performance metrics. Beyond total sales, what other performance metrics are being tracked? Number of phone calls, presentations, appointments? These all help define your closing & sales strategy.

Knowing the first 4 steps of the standard 5-step selling process: (1)Sell myself, (2)sell my company, (3)sell my product, (4)sell my price, is essential to the closing step. Building a clear value proposition (what's in it for the customer) that is easily understood by your prospective client will ensure more of your prospects are converted into sales instead of lost opportunities.  


Understanding, practicing and clearly articulating these steps make closing a little less daunting and more natural. Once you have the first 4 steps down, now it's time to seal the deal. 


Multiple Types of "Closes"
There are different closes for different scenarios, situations, products, etc. So understanding where you stand with the client will help you determine the type of close to use. For example, if a customer asked if a product came with a certain feature, using the porcupine close is a great way to close the deal: "If the product came with this feature, would you be ready to take delivery tomorrow?"


Guiding the Prospect with Trial Closes
Closing is not a separate event in the presentation, but integrated throughout the process. Every "yes" obtained is a minor close that helps build value and leads to the ultimate "Yes" when asked for the order. Explain a benefit and feature, then ask, "do you see how this will benefit you (your company)?" In sales, "selling 'aint telling", meaning if you're doing most of the talking, you're not really building value. Ask questions, listen, then ask more questions designed to elicit a yes answer.


Close Ended Questions
It's not enough to just ask questions, the questions should be designed to produce 1, 2 or even 3 possible answers that you want to hear. If setting an appointment, asking "would today or tomorrow be better for you?" would be an appropriate closed-ended question. Open ended questions like "when can you come in", "what do you think?" allow the customer control the call and sales process, making it much more difficult to get YOUR desired result. Example of closed ended questions: Today or tomorrow? Black or White? Yes or No?


In Summary
Having a planned closing process as part of the total presentation will help you convert more of your deals into wins and generate more bottom line revenues. 

Remember, closing means:

• No vagueness or talking too much
• Speak with confidence and energy
• Asking close ended questions that elicit a yes
• Clearly articulate your value proposition, rates, terms and conditions
• Know your objections and rebuttals
• Ask for the order
• Finalize the details:  delivery date, time, etc. 

Happy selling!

3 Simple Steps to Improve Appointment Show Rates

Using these 3 simple steps, your dealership will see a vast improvement in appointment show rates.

by Don Queen, CEO
Dealer Force

Step 1. Don't set an appointment more than 5 day's out

So the customer is interested an appointment, now it's time to close (closed ended questions only!)..."Can you make it in today or would tomorrow be better for you?" Always try to get them in sooner rather than later, it's part of selling the sense of urgency for the offer (we'll discuss the 'Intangibles' of the phone call in our next blog). If they state they aren't available until next week (or more than 5+ days), it's a good idea to set a scheduled call back when you can book a solid date. Our agents book dozens of appointment daily from their scheduled call backs, don't be scared to call back!

As a general rule, only set an appointment if the customer can come in within the next 5 days. Any further out than that, the likelihood of a show diminishes greatly. Simply set a scheduled call back for a more convenient time, then set a firm date and time within the next 5 days.

Step 2. Re-confirm the appointment, on the call

So you booked the appointment, now what? While still on the phone call and after all contact/appointment data has been properly logged, simply re-confirm the date and time works form them.

I like to use this line in our scripts to help create a sense of connection and responsibility for making the appointment: "Lastly Mike, I want to confirm one... more... time... the date and time definitely works for you, I'm accountable for appointments that don't show so I can count on you to be there, right?"

Subconsciously and consciously, the agent is painting a picture that says: "I'm not twisting your arm here, right? I'll get in trouble if you don't show!" This simple line helps solidify a quality appointment that will show.

Step 3. Confirm the appointment via text, e-mail message & phone call

With the world more mobile than ever, most people today use text, cell phones and email as their primary means of communication. Confirming the appointment becomes almost as important as setting the appointment in the first place. Sending a timely reminder message helps keep your appointment at the top of their list for that day.

We use a straightforward confirmation process:

• When initially booked, send an email & text confirmation.
• If a morning appointment, call the afternoon or evening before
• If an afternoon/evening appointment, call the morning of
• Send another reminder text & e-mail 2-4 hours prior
• If need be, place another confirmation call 2 hours prior (if 6+ hrs between initial call & appt)

Most dealer-centric CRM systems come integrated with email and text functionality, so initiating a solid confirmation process should be fairly seamless for most operations. 

Taking these 3 simple steps will help you improve your show rate on appointments, in most cases by upwards to 15%. Good luck and happy selling! 

Finding BDC Success: The 3 Core Essentials

A Business Development Center (BDC) at it's heart, is about one-to-one interaction: People talking to people, connecting & interacting - sales, in all its stages and forms, is still a people business. So for a BDC to truly be successful - to add significant bottom line profits without significantly adding overhead - these 3 key essentials should be part of any new or existing BDC operation .

Key # 1: The BDC Agent

Finding the right agents really starts with defining an agent profile: Articulate, good reading and math skills, enthusiastic, great phone voice, reliable, ability to multi-task, energy, etc. Knowing the traits you want in an agent is vitally important to recruiting the right people. You'll reduce the time spent interviewing unqualified candidates and streamline the entire recruiting process, including agent 'time-to-readiness'.

Recruiting, initial training, ongoing training & quality control also play an important role in developing your agent base. Productivity can be directly linked to how prepared agents are BEFORE they get on the phones and the ongoing feedback received from their calls and overall performance. Creating an ongoing training and quality control process will help your agents understand how to handle objections & rebuttals and close more appointments (which is & should be their primary goal).

Key # 2: Management (and their full buy-in)

Equally important to the success of any BDC, is a management team that has fully bought-in to the integration of a BDC operation (whether in-house or outsourced/offsite). Assigning the right budget, supervisors and processes takes planning, money and time. From operations to administrative support, a BDC requires a management team that understand the functional components of a BDC and the relationship between the agent, dealership and customer. Recruiting, training and quality control processes in place? Check! Performance measurements (KPI), compensation plans, scripts, software and Internet in place? Check!

Key # 3: Technology

With the vast number of lead generation sources available, it's easier than ever to generate a high volume of sales leads for your BDC. Having the right technology to handle the volume is essential. Gone are the day's when a room full of agents manually dialed hand written lists (although many dealers still employ this method). Predictive dialing technology allows for thousands of daily dial attempts and allows for instant response to new leads by integrating with dealer ILM, CRM or other lead databases. Agents no longer have to listen to answering machines and busy signals and on average, will spend 80% of every hour on a live call.

While this is just a summary snapshot, with each of these 3 keys in place & fully operating, a BDC will provide the dealership with:

• Improved lead conversion rates
• Improved market penetration and share
• Higher level of customer service quality
• Profits!

There is obviously much more that goes into a BDC operation, but rarely will a BDC function at a high level without the '3 Core Essentials'.