Discover the advantages of BDC (Business Development Center) dealerships in our comprehensive article. Learn how BDCs can streamline sales and enhance customer satisfaction.

Automotive BDC: Definition, Benefits, and Best Practices

A dealership’s Business Development Center serves as a crucial hub for both inbound and outbound communications with potential customers. In support of both sales and service departments, BDC representatives are often the customer’s primary dealership contact, and that means going above and beyond playing the role of receptionist and taking full ownership of customer relationships.

In practice, BDC responsibilities can take the form of fielding inbound calls as well as proactively nurturing warm leads by encouraging in-person appointments and test drives. A team of high-performing BDC representatives helps customers feel more comfortable with what can often be an intimidating car-buying process. They also help sales reps focus on those customers most likely to buy and aid service departments with customer challenges.

What is an automotive business development center?

An automotive business development center, also known as a BDC, focuses on setting up appointments for service and sales departments. The goal is to investigate leads, engage with them, and get those customers into the dealership.

10 Benefits of Having a Dealership BDC

Any automotive dealership that wants to build better customer relationships, drive sales, and improve customer retention can benefit from a BDC.

1. Improve Agent Productivity.

A strong BDC department goes beyond appointment setting and asks how else they might support sales and services teams in their specialized role. As the frontline contact between dealers and car shoppers, a BDC rep essentially provides the road map for a car buyer’s path to purchase from initial inquiry to final sale by nurturing sales leads, incentivizing customers to make and keep appointments, and following up regularly to keep as many sales opportunities open as possible.

When done right, each of these actions primes car shoppers for their in-person experience with the sales team and effectively streamlines the customer service process; when a customer has a question, your BDC reps should be the first ones they think to call.

2. Increase Professionalism.

As the voice on the other end of the line whenever a new customer comes calling, BDCs establish your dealership as a trusted authority for all things related to the car buying process.

Whether fielding questions about used vehicle value or placing outbound calls to shoppers likely to be interested in new inventory, the BDC gives dealerships an organized, professional appearance that builds trust and encourages greater customer satisfaction.

3. Boost CSI Rating.

And while we’re on the topic of customer satisfaction, it’s worth emphasizing a BDC’s positive impact on a dealership’s Customer Satisfaction Index (CSI), the metric often used by automakers and dealerships to gauge a customer’s overall impression of their businesses. Stronger CSI scores indicate customers are satisfied with their overall car-buying experience, making them less likely to stray toward your competition and more likely to tell their friends about you.

4. Save on Costs.

All that time BDCs save dealerships by serving as dedicated call-handling specialists adds up to real-world cost savings.

Compare sales agents without BDCs taking time to follow up on customer voicemails and missed sales opportunities to a sales staff fully focused on meet-and-greets, test drives, and closing conversations—which team do you think performs more efficiently?

5. Consistent Outbound Calling.

The last thing any dealership needs is an eager customer falling through the cracks. Sales agents left to balance phone calls with opportunities on the showroom floor will inevitably let a crucial call go unanswered without BDC assistance.

The automotive space is much too competitive to let leads slip away—a dedicated BDC team mitigates this potential weak point and allows sales teams to focus on selling.

6. Omni-Channel Selling.

As much as we like the personal touch that comes through in a traditional phone call, there are other ways for customers and dealerships to communicate. Omni-channel selling, or the practice of giving customers a consistent sense of your brand no matter where they happen to come across it, takes every channel into account when engaging leads.

Live chat portals on dealership websites have grown into an industry mainstay in recent years. After-hours calls are among the biggest missed opportunities when it comes to getting appointments set with first-time customers. Depending on the brand, omni-channel selling might include emails, calls, texts, social media, paid search, and could even extend to influencer or affiliate marketing.

A dedicated BDC monitors these channels to ensure someone is always available to field questions and guide customers toward their next steps.

Pros and Cons of Automotive BDCs

There are both pros and cons of having an automotive BDC. Here are a few things to consider:

Pros

Provide excellent customer service over the phone.

An automotive BDC is great because it allows specialists to work with new leads and customers on the phone. They focus on customer service and satisfaction to bring more people in the door.

Create more sales opportunities.

With a well-trained staff, an automotive BDC can help increase sales. The team looks for and interacts with new leads and works to convert them into paying customers. They help make appointments for the sales department, too, so warm or hot leads make their way to your dealership instead of another one.

Free up your sales and customer service representatives to focus on other tasks.

With automotive BDC support, your sales team and customer service reps can focus on tasks other than initial lead management. With the extra support, your team can take on more complex tasks, such as working directly with customers in-house.

Cons

Poorly run BDCs will not offer strong results.

A poorly run BDC can lead to lackluster results if it’s not managing leads well. Failing to answer calls, not providing good customer service, and other issues can hinder performance.

Finding skilled BDC representatives can be challenging.

It takes time to become good at a customer service and sales role in the automotive industry. Finding skilled BDC reps can be difficult, and that search can slow down your BDC’s work.

BDC representative turnover can be a concern.

The automotive industry can be challenging to work in. With such large sums of money exchanging hands, frustrations can be high. BDCs without good support for their teams may see representative turnover become a problem.

BDC Dealership Best Practices

Business development center representatives are at their best when handling calls naturally and with confidence (i.e. not following a stiff call script). Customers know dealerships aim to sell cars. Instead of shuffling around the subject, dealers can train their BDCs to have honest, productive conversations by emphasizing the following points:

Confirm the customer appointment as soon as possible.

The best calls with customers stay focused on setting an appointment. Sales can handle the finer details of payment plans and pricing (more on that below). But for BDC reps, extending the invitation to meet in person within a phone call’s first 30 to 60 seconds or a text conversation’s first few messages is the ultimate goal of virtually every interaction.

Know that cars are sold in person, not over the phone.

The temptation to sell is strong when a customer’s questions naturally lead to conversations about which vehicles might be a great fit or what exciting new inventory may be worth further exploration. Good BDCs resist the urge to close sales over the phone (or text, or webchat) before even suggesting an in-person appointment or test drive.

Car sales come from shoppers who take the leap from simply considering a new car to scheduling a test drive. A BDC capable of helping leads consistently make that leap is a worthy investment.

Do not go into finances over the phone.

There’s a lot of financial information to cover when purchasing a vehicle; throwing terms and APRs at a customer over the phone before closing them on an appointment is a great way to overwhelm potential buyers.

Use positive language to make the customer comfortable.

Every serious customer is really just looking for a fair deal and a smooth car buying process. Positive language will help build a customer’s confidence in your dealership as the place to find both of those things. BDCs are experts in providing customers with a sense that the automotive sales process doesn’t have to be a hassle.

Sell the test drive.

No aspect of the sales process illustrates the power of “show, don’t tell” quite like a few minutes behind the wheel. One 2021 study on consumers’ post-pandemic buying habits discovered 79% of car shoppers would still “never buy a vehicle without test driving it first.” Test drives are a pivotal component of the car-buying process—and frequently the most fun—which is why good BDCs steadily guide car-buyers past the consideration phase and into a physical vehicle.

Sell the aftermarket bonuses.

There are more opportunities to offer customers great deals than just the base price of the vehicle. Whether it’s tech add-ons, security packages, or aesthetic upgrades (more than a few cars have drawn extra showroom attention with nothing more than a slightly sportier set of rims), there’s almost always some unique vehicle component to further entice potential buyers.

What Podium AI Can Do for Your Dealership

Podium’s AI BDC instantly connects dealerships with prospective car buyers through fast, fully-automated communication. Built to streamline the customer’s transition from “just looking” to owning their new favorite vehicle, the AI BDC answers questions, responds with timely follow-ups, and accesses real-time inventory details to book test drives with potential buyers. Watch Podium’s AI BDC in action now with a free demo.