BDC & Strong Processes Leads Bob Watson Chevrolet To Nearly 300 SF Units Per Month

One reason Special Finance comprises almost three-fourths of Bob Watson Chevrolet’s business may be their headquarters in Harvey, Ill.: a buzzing suburb that rubs shoulders with Chicago area and Northwestern Indiana. The challenge? “We’re competing with five other Chevrolet dealerships within a five-to-ten-mile radius,” said Krum. Fortunately, being so close to big urban districts allows them to market to a much larger audience.

Bob Watson Chevrolet left its mark in the sand long ago. “We’ve always had Special Finance as the primary focus of our dealership,” Krum said. “Our tendency is to focus more on secondary clientele, but we try to help everybody. Over the last few years we have probably improved our sales by at least 30 percent. Every year gets better – we add to our inventory, we add to our staff. I only want to see our car sales go up, the salespeople to get stronger, our inventory to increase and our BDC to be the best that it can be.” 

The dealership renders solid numbers within the sub prime market for several reasons. First, they are a high-volume dealership which allows them the flexibility to work with customers from both ends of the spectrum.  Second, they aggressively advertise their ability to service the special finance customer.  One of their slogans has been ‘Good People, Hard Times.’ Their Special Finance Hotline (and Michelle’s name) appears at the top of the store Web site (www.bobwatsonchevy.com).

Finally, they also advertise a Finance Recall service for anyone paying double digit interest on their car loan, whether they wish to finance the car they currently drive, or are hoping to finance a new car. “From start to finish we are accommodating the customer’s needs, from credit, to finance, to the service department,” said Krum.

POWERHOUSE PROCESS

Krum has made a strong name for herself by leading one of the top BDC departments in a very competitive industry.  Under her leadership the Internet department, BDC department at Bob Watson Chevrolet tries to maintain a healthy symmetry with the  sales department. “We’ve become successful because we have an incredible sense of organization that makes the process as quick as can be,” stated Krum. “Everybody has a responsibility, but they all step up to the plate to make the sale. Everyone’s on the same page.” A single training manager educates and coaches all sales associates, BDC and Internet employees. Likewise, the sales department gives the same warm welcome to every visitor. All salesmen work every customer.
Customers are treated the same regardless of the advertising that prompted their visit to the dealership. “We get customers’ credit applications by Internet or telephone. The minute we get them, we’re sending them in to the finance office, dealing with banks, inviting those customers into the store and escorting them to the vehicles they’re able to purchase,” said Krum.

STRENGTH in DIVERSITY

The electricity generated by the staff at Bob Watson Chevrolet is matched only by the variety of cars they’ve accumulated. “We offer many vehicles at very competitive prices,” Krum said.  Customers get a second chance on financing and a wide selection of vehicles to choose from. The store stocks everything from economy, to luxury, to SUVs.  The Watson Auto Group includes four dealerships, but at the Chevrolet dealership alone there are between 250 and 300 used cars on the lot.  According to Krum, it’s one of the biggest volume dealerships on the south side of Chicago.

“We purchase what everybody’s looking for: cars that people can finance with a decent payment.” They purchase at auctions, through lease returns and demos, vehicles that will last the customer three to five years. Most cars have very low mileage, and each car goes through an inspection process. They also stock certified used vehicles.  The dealership knows that customer service doesn’t stop at the sale. This is why the store regularly posts discounts and specials on their Web site for both their service and parts departments. The more they can accommodate their customers the more likely they are to return for another purchase.

Krum holds almost seven years of car sales and finance experience herself. “I was led to the Watson Auto Group because of their volume, their success rate, their staff members—who are very easy to work with, and their policies, which are very easy to follow.” The Watson Group was just starting their Internet department when Krum was initially promoted to Internet manager. Now they have a manager at each of their four stores, and Krum oversees of all of these departments. “It’s definitely in my blood,” said Krum.

With strong leadership and a highly trained staff, these departments are thriving. They have a very strong BDC that is responsible for the initial customer response. This department is prepared to handle all types of credit customers, and trained to answer questions that customers may ask. Their primary goal is to set the appointment.

The BDC and Internet departments are combined into a special hybrid operation with seven people in a blended work area, overseen by one Internet manager. Much of their business is based on appointments, handling an average of 100 - 200 appointments per day. “We also do an intensive amount of follow-up. We are in constant contact with these customers,” Krum said, noting that the salespeople are making regular contact as well.  The BDC/Internet department staff keeps busy responding to leads with phone calls and emails in an attempt to schedule appointments in the showroom.  It works because 25 - 30 percent of their business is generated from this department.

ADVERTISING

The dealership receives leads from third parties lead sources and generates leads from their own advertising efforts including customer referrals.   “We like to generate our customers from everywhere,” said Krum, in describing their diverse advertising approach. Only a small percentage (about 15 percent) of their leads are generated from print ads today.

 “We put a lot of our budget towards what works best - TV and Internet leads.” Besides running two-minute commercial spots, the dealership relies on the commercial’s close relative, the infomercial to generate a large amount of leads. “Our infomercials run during many different time spots, sometimes nine in the morning, sometimes late afternoon, to catch people during different parts of their day, and to target a certain number of people watching television.” The dealership works with Focus, Inc to create commercials and infomercials that appear on cable and traditional network television.  The infomercials have various messages that inform the customer and drive action.  Much of their marketing efforts are based on testimonials—customers and employees sharing their own positive experience on camera.

THANKING the CUSTOMERS

Customer testimonials amount to strong publicity, and the dealership clearly values their loyal patronage.  Almost once per month, the dealership hosts a Customer Appreciation Night to show their gratitude.  “We invite everyone who has purchased a vehicle, new or used, to our showroom for food, games, and prizes just to let them know we appreciate their business.”

The dealership sends out direct mail and e-mails to the people who have recently purchased a vehicle inviting them, but every customer is welcome to attend. There are no strings attached.  During this event, the store is decorated with bright balloons, confetti, and streamers. The dealership provides dinner, raffles off prizes, and answers questions customers have about their vehicle. Many customers come every month. The night helps build an ongoing relationship with their customers and allows the dealership to say thank you yet one more time.

A strong BDC/Internet department, an outstanding finance department and sales force, aggressive marketing, and true customer appreciation all held together with a strong leadership commitment for the special finance market will likely allow Bob Watson Chevrolet to continue dominating their market.

Vol 4, Issue 2