Balancing AI With BDC Agents

*This article was originally published in the July/August 2024 edition of Fixed Ops Magazine*

The Art of Balancing AI with Human Agents in Business Development Centers

In the ever-evolving landscape of the automotive industry, dealerships are continuously seeking ways to enhance customer satisfaction and operational efficiency. One of the most significant advancements in recent years has been the integration of artificial intelligence with human agents in BDCs. This fusion of technology and human expertise represents a delicate balancing act that, when done correctly, can revolutionize your dealership operations.

THE ROLE OF AI IN BDCs

AI technology has made significant strides in handling routine and repetitive tasks within BDCs. AI-powered Digital Voice Assistants (DVAs), for example, can answer calls 24/7, handle appointment scheduling, and provide information about service hours and routine maintenance. This allows dealerships to offer consistent and efficient service around the clock, ensuring that no customer call goes unanswered. AI also excels at managing time-intensive tasks such as email and text marketing campaigns. By analyzing data from a dealership’s CRM and DMS systems, AI can create targeted lists, send personalized communications, and enhance customer retention efforts. This level of automation frees up human agents to focus on more complex and value-added tasks.

Despite the impressive capabilities of AI, human agents remain an indispensable part of the BDC equation.

THE HUMAN TOUCH: INDISPENSABLE IN BDCs

Despite the impressive capabilities of AI, human agents remain an indispensable part of the BDC equation. There are several reasons why the human touch is still crucial:

Complex Problem-Solving: While AI can handle routine inquiries, more complex issues often require the empathy, understanding, and problem-solving abilities of human agents. Customers with unique concerns orthose who prefer speaking with a person can receive that individualized attention they need from human agents.

Building Relationships: Human agents excel at building relationships with customers. These interactions are vital for creating a loyal customer base, as people tend to trust and return to businesses where they feel valued and understood. People continue to buy from people they like.

Handling Transitions: A key challenge in integrating AI into BDCs is managing the transition between AI and human agents. Understanding when to hand over a customer from AI to a human and vice versa, is critical. Effective training ensures that human agents can seamlessly take over from AI when needed, maintaining a smooth and satisfying customer experience.

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BALANCING AI WITH HUMAN AGENTS: BEST PRACTICES

To achieve the optimal balance between AI and human agents, dealerships should consider the following:

Training and Integration: Both AI systems and human agents need thorough training to work together effectively. Dealerships should invest in training programs that not only help human agents understand how to use AI tools to enhance their performance and customer interactions but also focus on enhancing agents’ communication skills, particularly in de-escalating situations as well as upselling. Additionally, AI Digital Voice Assistants should be rigorously trained using real dealership conversations and playbooks to ensure they handle interactions naturally and adhere strictly to business rules. At the end of the day, BDC agents and AI systems should be “singing the same song,” while providing a cohesive and seamless customer experience.

Task Allocation: Clearly define which tasks are best handled by AI and which require human intervention. Routine tasks such as appointment scheduling and answering common questions can be automated, while more nuanced and complex issues should be directed to human agents.

Continuous Improvement: AI systems should be continuously refined based on feedback from human agents and customers. Regular updates and improvements ensure that the AI remains effective and relevant to the dealership’s needs.

Focus on Value-Added Tasks: Human agents should be encouraged to focus on tasks that add significant value to the dealership. These include outbound calls, personalized follow-ups, and handling complex customer issues. By relieving them of routine tasks, AI allows human agents to contribute more strategically to the dealership’s success.

OVERCOMING RESISTANCETO AI INTEGRATION

We understand that integrating AI into your BDC can meet resistance from your staff. However, by working closely with management, including the BDC manager, you can demonstrate how technology can enhance the work environment and provide additional opportunities for agents to increase their earnings. Consider the example of a centralized BDC handling inbound calls for 16 stores. Initially, the BDC team focused heavily on inbound calls, leaving little time for outbound efforts to drive service department traffic or meet manufacturer objectives. In this case, we collaborated with management to:

Revise the Pay Plan: We differentiated incentives for inbound and outbound appointments. Inbound appointments taken after transfer from a DVA were paid $1.00, an increase since these calls were more challenging. Outbound appointments were incentivized at $3.00- $5.00, depending on the campaign. This adjustment enabled agents to earn more by focusing on outbound efforts, which in turn boosted appointment volumes and service revenue.

Improve Work-Life Balance: With fewer agents needed for inbound calls, we adjusted schedules to offer a 5-day work week and reduced Saturday shifts, enhancing work-life balance and reducing turnover.

Enhance Agent Preparedness: We activated a whisper feature that provides key customer information to agents when they take a call, improving both the agent’s and the customer’s experience.

These changes allowed BDC staff to tackle more complex tasks, significantly increasing appointments set, revenue per repair order, and overall service revenue. The improved work environment and enhanced earning potential transformed the BDC team members into valuable assets for the service departments, reducing turnover and fostering greater job satisfaction. One BDC manager who was initially skeptical has since become one of our strongest advocates.

CHOOSING AN OUTSOURCED SOLUTION? KEY CONSIDERATIONS

In recent years, many dealerships have turned to outsourced BDC solutions to enhance efficiency and focus on core business operations. Outsourcing can provide access to specialized expertise, reduce operational costs, and allow dealerships to scale their operations more flexibly. When selecting an outsourced BDC solution, keep these best practice considerations in mind:

Alignment with Your Needs: Ensure the outsourcing partner understands your dealership’s specific needs and business rules. Their AI solutions should be trained using real dealership conversations and tailored to follow your business guidelines rigorously.

Scalability and Flexibility: Choose a partner that offers scalable solutions to accommodate your dealership’s growth. They should provide the flexibility to scale up or down based on your needs without compromising on quality.

Training and Support: Your outsourced partner should offer comprehensive training for both AI systems and human agents. This includes initial training during onboarding and ongoing support to ensure seamless integration and continuous improvement.

Communication and Transparency: Effective communication is vital. The partner should maintain open lines of communication and be transparent about their processes and performance metrics.

Reputation and Track Record: Evaluate the outsourcing partner’s reputation and track record in the automotive industry. Look for testimonials, case studies, and references to ensure they have a proven history of delivering successful outcomes.

CONCLUSION

The integration of AI with human agents in BDCs is a transformative development in the automotive industry. By leveraging the strengths of both, dealerships can achieve unprecedented levels of efficiency and customer satisfaction. The key to success lies in finding the right balance and ensuring that both AI and human agents are equipped to work together seamlessly.

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Matthew Belk, Founder and Chief Innovation Officer at Better Car People, brings extensive experience in automotive process training and dealer group management. The merger of Better Car People and Proactive Dealer Solutions signifies a new era in automotive technology and retail training, combining the strengths of two industry powerhouses to deliver unparalleled value and innovation.

Formerly the director of eCommerce for Hendrick Automotive Group for 10 years, he co-founded Better Car People in 2010, assisting over 3,000 automotive dealers. Matthew is also a subject matter expert in online automotive retailing and has completed executive learning for strategy and innovation at MIT Sloan School of Management.

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