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!