Pros and Cons of Outsourcing Your Business Development Center
There are many reasons a company could and should outsource its Business Development Center. With the good, can sometimes come the bad. Consider all these options when choosing to outsource your BDC and save your company the pains that come with having one in-house.
Control Overhead – Pro
Outsourcing a BDC means you are hiring their team, for a contract, and a flat rate. A dealership’s labor expense can be one of their highest after accounting for taxes, vacation, bonuses, insurance, office space, personnel support, office supplies – you name it! Not to mention the time and money that must be allocated to recruit, train, and retain employees. By outsourcing, you are able to control overhead and maintain a steadfast budget. Any changes to their internal structure or team – that’s not on the dealership, and your service agreement remains the same.
Can be Expensive – Con
Don’t be fooled – although a BDC can and does save you money by decreasing overhead costs, it doesn’t mean they are necessarily cheap. A contract with a business development center can depend on a number of things, and especially for those that charge incentive fees. Watch out for BDCs looking for extra compensation based on sales, or on the other side of that coin, the outsourced team is not putting out work that matches the fee they’re being paid. So the cost-effectiveness of the service can sometimes waver, so choose your BDC wisely!
Access to Larger Talent Pool – Pro
An in-house BDC is going to be limited to a few people, given space and salary requirements. Companies like Customer Traac who focus on customer service for dealerships are going to have dozens of people dedicated to your cause, whose talent and expertise goes leaps and bounds beyond the capabilities of hiring internally. You will always have more than one person focusing on your business and providing top tier customer service.
Employees Outside of Your Company – Con
You may not be able to be a part of the selective process of the people dealing with your customers, and representing your brand. This means putting your trust in people your dealership didn’t hire directly, but to put it in the hands of the BDC you sign with. It’s important to develop a good relationship with your BDC managers right off the bat, and feel comfortable about utilizing their employees for your services. This can be hard for some managers, leaving the control and the representatives of the company not being in-house.
Don’t Have to Expand Space – Pro
Business Development Departments can produce a lot of noise-making phone calls, receiving phone calls, etc. and would require their own space. There is no need to make room for offices, or desks when outsourcing your BDC.
Negative Impact on Company Culture – Con
Having members of your team outside the organization can impact company culture negatively by not being able to get to know the outsourced team. There’s something to be said about having a tight-knit company culture, and outsourcing takes that away. This does mean though, the in-house team can really focus on getting to know each other on a more intimate level, by having a smaller team.
Streamlining Customer Service – Pro
Having a team devoted 100% to the customer service of your business is going to not only streamline your customer service, but improve it tenfold. Call wait times will decrease, appointment scheduling will be proactive and timely, service managers and the dealership employees can focus on what they do best.
Communication With Your BDC
Lastly, outsourcing your customer service to a BDC might make you worry about communicating with the team. There’s no stepping into your customer service managers office and checking in, but there is a team of people you can deal with via email, phone, skype. Customer Traac ensures there are no communication snags, and helping keep one point of contact can streamline the communication with your BDC. Our partners help dealerships focus on what they do best, and trust in us to do the same.