The 3 major issues with BDCs include too many data sources, outdated manual processes, and desk phones. Scott introduces ways to overcome these hurdles and increase the efficiency, profit, and organization of your BDC.
Tactical Tips Episode #17 Transcript
BRAD: All right, Tactical Tip Tuesday!. I’m super excited to be here with my friend Scott Davis. He’s president of Volie he’s out in Florida today, which he’s rubbing in since it’s cold out here in Texas today. So I’m not too happy about that, but I’m glad that you’re out there. We’re just talking a little bit about NADA coming up pretty quick. We’re both pretty excited about that. You know, Scott, I’m glad you’re here. A lot of people ask me this question and we had Wendy Reeves on for a little bit and she touched on service BDC, and she touched on what we can do on the service side of stuff. I know you guys are big into that. So what are some of the problems that dealerships face on the service side of the BDC situation that they got going on?
SCOTT: Yeah, thanks for having me on Brad. Excited to be here and yeah, so running a service BDC is hard right? So the first main problem they have is they’ve got data coming in from all different places. They’re downloading lists through their DMS, they might have something from their scheduler, they’ve got recall lists that the OEM gives or our telematics data. Automotive data is generally very dirty and so you know it’s hard to manage that data, and that’s really the first thing. We audited our database over a few hundred data DMS feeds. 40.08% percent of those records are duplicates in the DMS. We also audited what gets uploaded through our FTP. There were 165 million people uploaded through the FTP and of that, it was only 67 million unique human beings. So that’s DMS. And then the other thing is the galley-less telematic. So those things get mashed together. That’s one of the first big problems is the dealers are working off really tough data and they’re working off spreadsheets and pieces of paper and such.
BRAD: Yeah, I totally get that, man. You know, it’s so important. As we start to move into this one-to-one marketing world and you have so much other data that’s out there, it’s so important to know who you’re talking to or who’s coming in. It helps in every part of the process. The whole journey from service and vehicles to put numbers on that vehicles, to try to acquire the car, to try to get them back in to sell. So we have to be able to keep up with them through that process. So I’m super excited to hear what you guys do for that and the rest of the problems that we’re facing.
SCOTT: Yeah, well, Volie takes all the data sources and combines them into one record so you can manage what you’re doing. It’s very important to solve this problem one way or another, just simply because the customers assume that you know what they’ve done. They don’t realize that the BDC manager may be subscribed to 8 different software platforms and get data 10 different ways. So it’s really fundamental. It’s where I would always start, with or without Volie is, is figuring out how you’re going to put the customer down into one record. The next most important thing that plagues BDC managers especially is everything is manual, like the previous thing we spoke about. You are printing off the list, your priorities change, etc. It’s really hard to know if you’re working the right work plan that you want. Are you calling the right most important people at the right time? Some calls are more important than others. Are you working through those systematically? So that’s the other big problem which, by the way, everything since it’s so manual, it makes it so it’s hard for the BDC managers to feel like they can take a day off too because if they’re not pulling the strings, it’s just a mess.
BRAD: We just talked about that. My wife’s a BDC manager and she feels like she can’t take a day off because she feels there’s such a manual process. I totally live that one personally because we have to plan months and months in advance if we’re going to go do something. So that one hits home.
SCOTT: Yeah, I mean it should be as easy as people log in and their workday is set for them.
BRAD: So you got one more for me?
SCOTT: Yeah, I got one more for you for the 3: It’s really, really hard to make money running a BDC with a desk phone. So your typical dealer BDC, they’ll make 6,290 inbound and outbound calls together a day. If you add that up if they’re on the phone for 2.5 minutes if they’re spending a minute and a half in wrap-up time where they’re working with the service scheduler and such. At 80 calls a day, they’re on the phone very little. And keep in mind if you make 100 attempts, you’re going to get ahold of 28 of them the first time right, and then you’ve got to put a system in place. So it’s important and you can get this from a lot of places besides Volie, but it’s important to use modern technology – call center technology and not a desk phone to run your BDC. It’ll allow you to quickly get through the people who won’t answer. You can do inbound and outbound with the same platforms, and when they’re not on an inbound call, they can quickly make the next most important outbound call. There’s a lot of good technology out there. Most dealers don’t realize that their phone system is not call center technology and your most valuable resources, your employees, the cost is skyrocketing for what they cost and there are tools to make you efficient. So just to talk a little bit about that, with modern technology, you can not only put some math to the inbound business and lower your drop rate to essentially 0. The only way to grow the business is being proactive and you know that. I mean it’s what you guys do right? So if you have 100 people enrolled that are callable in a call campaign, you’re going to get 28% the first time, 11% the next. On a 4-attempt campaign, 6% and 5%, etc. Of that, you’re going to get ahold of forty-some percent of them on a 4-attempt campaign outbound to make 13, 14, or 15 appointments at 277 NRO, which we measured a lot of our customers and that seems like a good conservative number. I said 270, 275. If you use a desk phone and you’re allowing things to be manual, that’s like 3 or 4 days of work for an agent, where it’s less than one day of work with technology. So I mean those are the three main things. Every every BDC needs it, and I figure out how to solve them.
BRAD: I think that’s fantastic. There are two things that I want to add to this. So one thing that I’ve noticed a lot of dealerships are doing or the ones that are preparing right? You know, one big thing my wife faces it seems like every other month is Covid running through her whole department. So one thing that I suggested to her was let’s cross-train those sales and service BDC agents so that if you’re out three sales agents, you can pull one service BDC agent to help, and so that’s something that I see people are doing more and more is cross-training employees, cross-training service advisors and parts people, cross-training sales and service BDC to overlap that. I actually came from the call center world before I got into automotive, so I’ve used call center technology for a long time. And the efficiency that you have whenever you do something like that is very, very interesting. I actually learned how to sell on the phones before I actually got into ever got into automotive. So I think that’s a big, big one and I think just realizing that, you know, on Tactical Tips, we’ve talked about multiple times that the service schedulers are really hard to use online. And so the perspective of why that person is calling, right? A lot of the inbound calls are not going to be happy, right? A Lot of them are having trouble with the website. A lot of them having trouble out there. So just getting those good personalities in there is really really important. Hire nice people at those call centers it’s really really important. I’m super excited to see you guys at NADA. I’m sure you’ll get a lot of people coming in from Tactical Tips to come ask you questions and things like that. I know you’ll be available. We’re going to drop your email address on here. What’s your email real quick?
SCOTT: firstname.lastname@example.org. And my phone number is (319) 240-2743. And I appreciate it, it was fun. It’s always fun to get together with you Brad and I appreciate being on today.
BRAD: Absolutely brother, I appreciate you. Have a wonderful day.