Just like in sales it’s important that you set goals, but even more importantly that you ensure the goals are being met in the BDC. The BDC, or the business development center, can be a huge profit center for the dealerships that do it right, the opposite for those that don’t. In order for the BDC to be profitable you must take a methodical approach to management, that is, you must manage by percentages.
The 4×4 Method of BDC Accountability
While there are many different percentages that can be tracked lets take a look at the most important ones, they are:
Show Rate, and
Each one of these must be tracked on a daily basis, they can both make or break the dealerships month. I get asked the question all the time, “Craig, what are some of the benchmark numbers for a contact, set, show and sold rate?”
There really is no easy answer to that question because it all depends if it’s new car or used car leads, prime or subprime. Each one will be different, instead lets take a look at your goals and do some math. Lets say you want your BDC to be the cause over 100 sales this month, how are you going to get there? First, take a look at your lead count, lets say you get an average of 750 leads per month. That means you must have a lead to sale rate of 13.4%, very doable.
From there, lets back it out and figure out what the overall contact, set, show and sold rates must be in order to reach that 13.4%
Contact = 80% Contact Rate or 600 set appointments
Set = [...]