The Niello Company has reached 100% in submitting MPI videos across its stores and is now working toward its next goal: getting more of its customers to watch the videos that accompany their service quotes.
“Right now, we’re at 89-90%, not as high as I’d like because we think there’s something wrong with the website,” explained Tully Williams, Fixed Operations Director for the Niello Company, to host Sam D’Arc during Fixed Ops Friday on Daily Dealer Live.
How they got here: The Niello Company reached 100% compliance on its MPI by giving its technicians across its 10 stores a stake in completing the task.
Williams said he monitored which technicians landed in their 100 Club on video scoring and gave away $22,300 last month in a scoring contest.
He’s now offering $500 to technicians with a 90 score or better for the next three months and $250 for those with scores in the 80s.
Ramping up efforts: Williams noted it took time to ramp up the video efforts, with the last five to six years being strong.
Part of these efforts, he said, took sharing with technicians just how the videos fuel hours.
“When you say 40, 50, 60% of your hours are recommendations, why would they not be on board?” Williams said.
Here’s how it works: The company uses Xtime for its videos, with Williams calling the process “stupid easy.”
The company added scoring last year, and Niello was one of the beta test sites for several months.
Two of the main problems identified were technicians talking too fast and extra sounds in the background.
The stores’ average score of the videos is 83%.
Lowering effective labor rate: Williams shared his pride in driving down the average selling hour or ELR, with a focus on retention.
“We’re a repeat referral business, and what drives that? Brakes, batteries, tires, and maintenance,” he explained.
The stores run a tire special: buy three, get one free, because it builds retention and keeps the customer servicing and eventually buying at the store.
The stores currently sell between 62% and 75% of their red events from the inspection, but are targeting presenting customers options and quotes when it is at a yellow on the scale.
Growing team: The Niello Company is committed to building from within and has a schedule for all its technicians.
In fact, Niello hires shop assistants who work with mentors for up to six months before becoming hourly technicians and progressing up to technicians.
“We do have, for all of our technicians, in writing, is how they can make $58 an hour,” Williams said.
As a result, he’s not had a tech shortage because he is always building his bench.
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Bottom line: As Williams points out, “trust is hard for us,” and the video is a powerful tool to help with that.
Moving ahead, the Niello Company is working with DriveCentric to develop its service CRM to help with more targeted marketing to customers to complement the video efforts.
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