Business Development Center Survey

1. Business Development Center Survey

2. Business Development CenterKey Findings • Many of the dealers reported that their BDC utilizes a dedicated staff, while others chose to rotate their Salespeople through the BDC. Dealer BDC research prior to their installation ranged from focused study to light research to none at all. • Three dealers visited other dealerships to see a BDC in action and only one respondent had previous experience with a BDC. • Challenges included lack of communication between departments as well as the exchange of information. For many dealerships it is a culture change that is resisted by dealership personnel. • Some examples of success: Fairbanks Dodge/Mazda sold 20 Internet sales for one month in 2001 and by 2002 sold 104 for the same month. Other dealers report very high show and close ratios. Sticking to procedures and proper training are cited. • There is no standardized technology being used across the board although most dealers are satisfied with their current system. They like the plan and the structured approach.

3. Business Development CenterKey Findings • Improvements desired include process changes followed by more management buy-in. • Manual back-ups are somewhat standard while training is provided at most dealerships. Fairbanks Dodge/Mazda has a best practice for continuous improvement that is based around daily training and ongoing visits to other BDC’s for ideas. • Volume and workload drive the size of the BDC but as Capital Ford learned, growing the department leads to increased business which again leads to growth in the BDC. • Respondents feel that manufacturers should create an incentive for all dealers to install a BDC. Some cite Ford as having a limited knowledge of how a BDC works and that Ford should involve itself more deeply in training and support.

4. 1 - Do you have a Business Development Centerwith dedicated people?

5. 2 - What were the determining factors that led to the decision to develop and install a BDC in the dealership? Others included: RTCM Seminar, Previous Experience, Manufacturer suggestion, 20 Group

6. 3 - Was there any research done on BDC’s?

7. 4 - Did you visit any dealerships that have BDC’sprior to installing the BDC here?

8. 5 - Have you had a previous experience operating a BDC? If yes, what was your experience?

9. 6 - What were some of the past challenges you faced? “Communication flow from desk to sales people.”- Fairbanks Dodge/Mazda“Culture changes for managers and salespersons.” - Johnson-Sewell Ford“Getting management buy-in and support from salespeople. Challenge is to keep it fresh and in the forefront. Discipline is required – making it part of your daily routine. Expect results too quickly – like using a treadmill once and expecting to lose 100 pounds overnight.” - Scott Honda “Hiring right people and choosing the right technology.” - Holman Ford“The customer generated by the BDC is many times treated identical to someone who walks through the door in regards to quoting prices which can result in a slow buying process.” - Freedom Ford

10. 7 - How did you overcome them? “Cooperation is better because they see the value in the BDC because of results. Trust in ability to get it done. Level of effectiveness of BDC reps increased because of increased training.” - Fairbanks Dodge Mazda “We force the sales people to be in the BDC for 90 minutes daily, ‘I’m putting my time in the Business Detention Center.’ Needs to be based on productivity, not hours.” - Scott Honda “1. E-Pulse Trac system, 2. Morning meetings – each manager goes over logs- exchanges ideas, very critical…. E-Pulse Trac hands them work plans every day…. Trade issues are the biggest obstacle largest now.” - Bill Collins Ford “Training, follow-up 24 used, 48 new, called everyone.” Orlando Infiniti “Haven’t overcome the problems yet.” - Freedom Ford

11. 8 - What challenges are you currently facing? “Paper-manual system takes 30% of our time – collecting up cards, reading handwriting.” – Fairbanks/Dodge Mazda“All sales leads related to customer contact need to be under one roof – have separate Lease Renewal department, Internet department and Customer Relations Manager.” - Scott Honda “Personnel issue – one negative/one person – performance and absenteeism are key factors.” - Cherokee Ford “Personnel was an issue one month ago – I had to look over training and review how they were trained. Focus on making them work together as a team. Group exercises from XL2000.” - Bill Collins Ford

12. 9 - Do you have a plan to overcome these challenges? If so, what are they? “Hiring greeter, looking at electronic showroom log – 72 salespeople.”- Fairbanks Dodge Mazda“Hiring, training additional personnel, moving switchboard from showroom, institute showroom concierge (Greeter).” - Capital Ford“On-going training – sharing numbers to prove results, show benefits to customer.”- Johnson-Sewell Ford“Looking to merge phone/lease/Internet and service follow-up. Need buy in from all personnel – haven’t decided how to implement yet.”- Scott Honda“Yes, on-going training.” - Peninsula Ford

13. 9 - Do you have a plan to overcome these challenges? If so, what are they? “Interviewed/Hired new people – Intense 1 week training program – Buddy system for next 90 days. Monetary systems reward for Buddy system. If you put your hand up, team leader helps out.”- Bill Collins Ford “More training.” - McCafferty Ford

14. 10 - What have some of the successes that youhave experienced? “Internet department running on all cylinders – show more sales/response time, under 30 minutes. 20 internet sales last year, 104 last month.”- Fairbanks Dodge/Mazda“Better control of phone and unsold showroom traffic – better tracking equals continuous sales improvement.” - Capital Ford“Our appointments and show ratio – 80% show, 60% close.”- Johnson Sewell Ford“Helping service improve CSI – survey customers and tracking reports (instant feedback) found common area (for example, no one greeted me) made effort to change small areas – CSI went up – we are neutral 3rd party – saw things they couldn’t see.” - Sheehy Ford“Touching 30% of what comes in the door – Internet, showroom, Advance trade, etc. Goal stay at 30% - then realistic improvement.”- Bill Collins Ford

15. 10 - What have some of the successes that youhave experienced? “Service Advisors take less calls. RTCM growth already sold 8 vehicles and still growing.” - Cherokee Ford“Internet, good growth and closing ratios.” - McCafferty Ford

16. 11 - What do you attribute these successes? Why? “More scripts, training.”- Fairbanks Dodge/Mazda“Blood, sweat, tears and training. Great overall focus by Dealer Principal.”- Capital Ford“Listening to customers and giving them the time they need to discuss any concerns. Customers like dealing with the same contact person who already knows their previous experiences.” - Sheehy Ford“Service Advisors call after warranty repairs for bumper to bumper customers. Having the BDC allows the Advisors the time to call customers, therefore increasing viewpoint scores (started 2 years ago).” - Cherokee Ford“Sticking to procedures. Regimented format – some people haven’t made it in BDC.” - Bill Collins Ford

17. 12 - What were some of the surprise benefits you experienced after installing the BDC that you didn’t expect? “Achieving the goals we set, bar is set higher each month, see true traffic counts, call measurement.” - Fairbanks Dodge/Mazda “Knowing what best Internet providers to keep and remove, for example, eliminate cars.com – auto trader is good, long term loyalty should increase. Dealership was totally surprised at the total volume of phone traffic.” - Capital Ford “Good customer feedback about the little things we do. They appreciate us and say thank you. More surveys returned on service.”- Sheehy Ford

18. 12 - What were some of the surprise benefits you experienced after installing the BDC that you didn’t expect? “Relationships – customers like dealing with the same people.”- Cherokee Ford “Train people right on the phone, they win them over on the phone within 5 minutes. Average phone call w/sales person 3 ½ minutes. Face to face, 15 minutes to win them over.” - Gary Yeomens Ford“Accountability – where our sales are coming from, where Internetleads are going. We tell exactly what customer said. Good salespeople follow-up on their customers (10%). 90% don’t, so BDC helps.” - Bill Collins Ford“Faster growth in the Internet.” - McCafferty Ford

19. 13 - Is there anything unique about your BDC? “All complaint calls go directly to the BDC Manager, who immediately channels them to them appropriate department - open C/R – all those logged to make sure it is resolved (binder)” - Capital Ford“Only 2 persons in center for 1-1½ hour, all calls including used flow through center, unique facilities, not a punishment, staff see benefits – service customer contact.” - Johnson-Sewell Ford“Sheehy Ford newsletter for sales events and Race for the Cure – can make sure to satisfy the customer (management)- if a customer is confused by a service advisor the BDC can call the customer back and explain it in lay terms.” - Sheehy Ford“Food drive set up through BDC. Girl scouts sell cookies outside BDC. Dan can override and make deals.” - Gary Yeomans Ford

20. 13 - Is there anything unique about your BDC? “We tell the customer we will call them back and then we do it 100%. Everyone can generate a concerned resolution sheet. Huddle sessions weekly with BDC personnel – input on processes – how they are working or not.” - Bill Collins Ford

21. 14 - In an effort to continually improve results, have you had to make some changes from the original process? If yes, what were some of these improvements?

22. 15 - What are your customer’s reactions to yourcontact processes?

23. 16 - Tell me how your BDC works “9 to 12 and 1 to 5. 90 minute shifts. Traver suggestion – 60 minutes. Sales people work same schedule in BDC – 4 days per week during 90 minute shifts. Minimum 300 minutes, maximum scheduled 360 minutes. Day off does not count for or against them or if delivering vehicles –25% deduction per week up to 100% of bonus if time not met in BDC.”- Scott Honda“Receive leads, assign lead, follow-up with lead, attempt to get appointment, schedule appointment, work with salespeople.”- Rich Ford Sales“At this time, they handle direct mail prospective, renewals and Internet. Going forward, RTCM.”- Graham Ford

24. 17 - What results are you held accountable? “Growth, more appointment, show and sell.” - Fairbanks Dodge/Mazda“Contacting customers (sold) to grave – with all notes; contacting all unsold until not possible to do so (including written logs)” - Capital Ford“ Daily contact, appointments, shows, sales.” - Johnson Sewell Ford“Profits/Reports.” - Cherokee Ford“Sales numbers, individual performance, all processes are being managed, employee attendance.” - Covert Ford

25. 18 - How do you measure your results? “Daily reports, DP, GM, corporate office, MTD as well as last 2 monthsto see trends as they form.” - Fairbanks Dodge/Mazda“By the number of sales/eventually results to opportunities.”- Capital Ford“Through objective, must hit, RP02RP040 Traver reports.” - Phil Long Ford“Gross and unit reporting.” - Orlando Infiniti“By CSI scores.” – Prestige BMW “Percentage of calls-sales, e-ups, BDC, Be-backs, telephone calls,when and how much time on phone.” - Central Florida Chrysler/Jeep

26. 19 - What results determine if the BDC is operating successfully? “Appointments made vs. appointments showed (41%)– Internet/fresh-ups/BB.”- Fairbanks Dodge/Mazda “Currently volume, eventually to be a percentage, ultimately growth in increased loyalty.” - Capital Ford “Number of sales generated by renewals, Internet, etc.” - Graham Ford “Internet closing rates, lease renewal percentages, RTCM closing rates.”- McCafferty Ford “CSI scores.” – Prestige BMW

27. 20 - What is the primary technology tool that youuse to manage your customer contact records?

28. 21 - Are there any other technology tools that you use in addition to the above?

29. 22 - How do you enter the data? Note: multiple responses

30. 23 - What type of reports do you generate?24 - How often are these reports distributed?

31. 25 - Who receives these reports?

32. 26 - What do you like about your current process? “It works well throughout. Our BDC handles all 3 buildings and a large volume of people and managers. We want an electronic tool that will allow the process to remain the same.” - Fairbanks Dodge/Mazda“Structured and well defined, focus is to develop a relationship with the customer.” - Johnson Sewell Ford“There’s a plan – We don’t always follow it. Our team has a playbook. BDC is our playbook, scripts are guides.” - Scott Honda“Team work, sense of accomplishment when we help a consumer. Customer satisfaction #1 – very structured.” - Bill Collins Ford“Simplicity, flexibility to make changes if the need becomes available.”- Freedom Ford

33. 27 - Based on a scale of 1-5, with 5 being the best, how would you rate the effectiveness of your current process?

34. 28 - Is there an area that you could improve or change, what would it be?

35. 29 - In the event that process or technology fails,do you have a back-up plan? If yes, what is it?

36. 30 - Do you have a training program that supports this process?

37. 31 - What is the training content? “2-3 days working one on one, continue to visit other BDC’s for ideas, training classes held daily as coaching through each call.”- Fairbanks Dodge/Mazda“Phone, video tapes, RTS, phone training and role play.”- Capital Ford“Daily meetings, ‘warm-ups.’ They sit with CRC personnel. Daily role playing and mastermind sessions.” - Sterling McCall Cherokee Ford“Far as sales staff, 1 week communication of Taver, Paul Cummings and Joe Verdi.” - Rich Ford Sales“At times, guest training from Ford. 1 week for new hires. Video tape for product knowledge. Once a week, GM holds a meeting which is ongoing training. Train on ‘worst case scenario.” - Maroone Ford

38. 32 - Who is responsible for your training?

39. 33 - What other BDC processes have you used in the past? “None.” - Sheehy Ford“Hired three people to follow ups service calls failed miserably because all they would hear is negatives. Hard to keep people excited. Burn out factor.”- Cherokee Ford“Weaning off Traver. Moving forward Auto Nation policy and procedures.” - Maroone Ford“Compilation of many sources.” - Scott Honda

40. 34 - What did you like about them? • “Traver: plan, playbook- don’t claim to be the gospel – these are guides – make it your own at the crossroads: We question now, however, what benefit we are getting from Traver today.” • Scott Honda“Veteran sales people (15-20 years) saw benefit – this can be done and I don’t have to do it.” • - Sheehy Ford

41. 35 - What led to your decision to change? “Service didn’t understand at first why,didn’t see the connection between BDC and service. We started the BDC with taking all incoming service phone calls between 7-9:00am.”- Sheehy Ford“Burn out factor – Cross train different departments, one-on-one relationship.” - Cherokee Ford

42. 36 - How many people are in the department? “2 Greeters/6 BDC/3 Internet/1 Administrative Manager.”- Fairbanks Dodge/Mazda“2 Managers, 8 sales, 8 follow-up.” - Capital Ford“2 Managers plus 1 data entry clerk.” - Johnson Sewell Ford“3 ½ (Cashier - 20 hours per week)” - Cherokee Ford“4.5 and sales staff.” - Gary Yeomens Ford“11 (10 + 1 manager)” - Bill Collins Ford

43. 37 - How did you determine the number of people needed in the department? “Tried to downsize – Management company advised parameters based on recommendations from Traver and past experiences from other BDC’s within the group.” - Fairbanks Dodge/Mazda“Constantly added to meet ‘realized’ increases in business.”- Capital Ford“Volume.” - Peninsula Ford and Gary Yeomens Ford“Workload.” - Rich Ford Sales

44. 38 - Were they hired from the outside or within? “3 within BDC/1 within Internet.” - Fairbanks Dodge“Combination.”- Capital Ford“Both.”- Sheehy Ford“Within”- Peninsula Ford“1 within, 2 outside.”- Gary Yeomens Ford

45. 39 - If they were promoted from within, what was their previous position? “Sales and service.”- Capital Ford“Operator/ tag & title – outside: previous survey experience from another dealership.”- Sheehy Ford“Sales- Very good background. Manager from F & I.”- Bill Collins Ford“Greeters, Lease Renewal.”- McCafferty Ford“Sales on Floor.”- Maroone Ford

46. 40 - What skill sets did you look for when staffing your department? “Computer or sales strength/ability to learn.”- Capital Ford“Computer skills, people skills, ability to interface with different department personnel under varying circumstances, self-starter.”- Johnson Sewell Ford“Pleasant manner, comfortable talking to people, people skills, computer skills,1st interview via phone, bring in if they do well.”- Sheehy Ford“Organized/Disciplined/Deal with people.”- Sterling McCall Toyota“Basic Sales,skills and product knowledge.”- Peninsula Ford

47. 41 - How are they compensated?

48. 42 - Is this the original pay plan or has it changed?If so, why?

49. 43 - How do you fund the department?

50. 44 - If there were one thing in your process that you feel you do better than anyone else, what would it be? • “Work harder than anyone else. Same hours now 8:30 instead of 9:00am; end of month aggressive push – 7:30 to midnight, advertising hook (24 hour cycle – every 3 months for 4 days) • Fairbanks Dodge Mazda“Set appointments that actually show up.”- Johnson Sewell Ford“Started from scratch, basic understanding of concept – customer background not automotive – talk in customer language, empathy.”- Sheehy Ford“Consistently making sure there is a next step to contact each customer. Keeping customer satisfied.” • - Bill Collins Ford“Just by having a BDC team puts us above other dealers.”- McCafferty Ford