Customer Loyalty Newsletter - May 2019

Customer Loyalty

ONE PROFESSIONAL TEAM

ISSUE 31

Customer Loyalty Newsletter - May 2019

NPS SCORES November 1, 2018 to April 30, 2019

In this issue: Page 2 Poor Customer Experiences Carry a High Cost Page 4 Good Job Report Page 8 Customer Service That Will Put A Smile On Your Face

Albuquerque - Wagner Rents (0016)

100.00% 100.00% 100.00% 100.00% 96.77% 96.67% 95.45% 90.00% 89.47% 88.24% 88.00% 88.00% 85.45% 85.00% 84.21% 83.67% 83.33% 82.76% 82.61% 82.35% 81.25% 79.31% 78.26% 76.74% 75.48% 75.00% 74.19% 70.37% 70.00% 64.79% 64.10% 23.53%

Carlsbad (14)

Las Cruces - Wagner Rents (0021)

Silver City (16)

Current NPS Loyalty Score 79.52%

2019 NPS Goal 82.00%

Steamboat - Wagner Rents (0013)

Durango (01)

El Paso - Wagner Rents (0017)

Grand Junction - Wagner Rents (0011) Silverthorne - Wagner Rents (0015)

Detractors (3.76%)

Denver - Wagner Rents (0004)

Promoters (83.28%)

2nd Steel (98)

Passives (12.96%)

Pueblo (03)

Grand Junction (02)

Albuquerque - Power Systems (15)

Burlington (06) Albuquerque (10)

Hayden (04)

Tech Products (97)

Pueblo - Wagner Rents (0002) Carbondale - Wagner Rents (0008) GOAL = 82% Fort Collins - Wagner Rents (0005) Carlsbad - Wagner Rents (0028) Commerce City - Wagner Rents (0012)

Loyalty Spotlight

BLOOMFIELD

Bloomfield (11) Aurora (00) El Paso (12) Windsor (09)

Providing EXCELLENT service to our customers: INDUSTRIAL MECHANICAL INC ARCHER WESTERN CONTRS LTD INTERMOUNTAIN CONSTRUCTION (Read more in the “Good Job Report” pgs. 3-7)

Aurora - Power Systems

Gypsum - Wagner Rents (0010)

Hobbs (13)

Colorado Springs (39)

Yuma (38)

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Poor Customer Experiences Carry a High Cost -An Article by Lynn Daniel

Poor customer service really carries a high cost in many ways. One way is through customers that defect. In an article by Kana Software that appeared in Loyalty Magazine, I was struck by some numbers he quoted. Let me share them. One large insurance company with an 11% dissatisfaction rate reported a loss of $476 million per year due to custom- er defections. Another study, cited in the same article, reported that the average cost of finding a new customer was $118.16 while retaining a current happy customer was $19.76. Yet, there is little evidence to suggest a broad scale im- provement in customer service. If you look at the historical scores fromThe American Customer Satisfaction Index you see very little improvement in customer satisfaction (some industries such as airlines are getting worse). From my personal experience I have far more stories about poor customer service that causes me to not be loyal. What are some of the reasons for this lack of focus on customer service and customer retention? There are several key reasons: --Management not aware they have a customer defection problem. In my years of consulting I cannot recall a compa- ny that measured customer defection. They perhaps were aware of the big customers that went away but many other customers just drifted away without anyone realizing it. Over the years I have had several strategic planning engage- ments where I analyzed customer turnover. In most every engagement when shown the list of customers who had quit buying management was surprised. --No one is accountable for retaining customers. In too many companies, the incentive for salespeople is almost to- tally on finding new customers/ business and not on retaining existing customers. As I work with most organizations there is no one area that has the explicit responsibility for retaining customers. --It is easier to talk about new customers who have come in as opposed to those that are loyal. When you land a new account there is usually much celebration. How many times is the celebratory bell rung to acknowledge that a cus- tomer has been with you for multiple years. I return to the numbers cited in the first paragraph. They vary from industry to industry but my guess is the cost ratio between keeping a customer and finding a new one is quite similar from one industry to the next. What are you doing in your company to keep customers from defecting?

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2ND STEEL (98) MIDDLE J REPAIR - JORDAN PUGH

Jordan was pleased with the service he received from parts representative, Paul White . Jordan said Paul went the extra mile to verify that the part was in good condition. Jordan explained that when placing his most recent part or- der from 2nd Steel, he told Paul that the part needed to be in good shape as he has had experience elsewhere with used parts that were bad. Paul called and verified for him that this part was in good shape and when it arrived it was in fact in great shape. ALBUQUERQUE (10) TOBIAS ESQUIBEL Tobias states that he appreciates how prompt and knowledgeable everyone at Wagner Equipment is and how good the truck and motor runs. Tobias states that Wayne Zirpel was very professional, helpful, and courteous. TOM BONHAM - ALEX BONHAM Alex said the work was done properly and Wayne Zirpel was very helpful and communicated well. Alex said Wayne is an asset to Wagner Equipment and the reason he will go back. STRAIGHT LINE CONST - RANDY HADDOCK Randy said, Mike Gutierrez and Richard Fisher do an excellent job and they are very busy at the Albuquerque loca- tion. David stated the effort that Susie Russell put into this rental transaction was great. David said that Susie’s level of service is off the charts. David stated he can email or call Susie and it is seamless and effortless, as she is just that re- liable. David stated he knew that Susie had worked very hard to procure this machine for him and he is very thankful for her efforts. SLV EARTH MOVERS INC - JOHN WILLSCHAU John stated that he is developing a good relationship with his sales representative, Scott Beaman . John said Scott did a really good job. RANDY KNEEBONE EXC TRUCK - RANDY KNEEBONE Randy stated Wagner Equipment did an excellent job start to finish. Including scheduling, repairing quickly, and being affordable. Randy stated the mechanic, Don Erdmann , was “top notch” and Sarah Newell who answered the phone and scheduled the appointment was excellent. TRANSIT WASTE LLC - ANDREW SMITH Andrew stated Wagner Equipment offers no hassle. Andrew said that whatever he asks, Wagner Equipment gets it done. AURORA (00) JKS INDUSTRIES LLC - DAVID RAMSDALE ELEVATED EXCAVATING LLC - OTTO BARLOW Otto stated that Nate Refvem completed the repair correctly and did a good job.

See more on page 4

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AURORA (00) EUGENE PEARL DENNIS - ANDY DENNIS Andy stated that Eric Davidson made the sales process very easy for him. BLOOMFIELD (11) ARCHER WESTERN CONTRS LTD - RUSSELL ORTIZ Russell stated that Wagner Equipment did a good job. The technician, Eugene Shorty is knowledgeable. INTERMOUNTAIN CONSTRUCTION - ROBBIE WOOD Robbie stated he has dealt with other rental places in the past but now he only deals with Wagner Rents. Robbie stated you can’t beat the service they provide. INDUSTRIAL MECHANICAL INC - JEFF ARCHULETA Jeff said Tyson Ferron helped him on a Friday afternoon to get the equipment he needed. Jeff said Tyson had it delivered by Saturday morning. Jeff said he has worked in the business a long time and this never happens! Jeff says Tyson was extremely helpful and responsive. BURLINGTON (06) HABITAT CONSTRUCTION LLC - RON KURTZ Ron stated that Terry Koehn got him what he needed and took care of him, just like he has in the past. Ron said that it is a nice thing to experience good customer service. CARBONDALE - WAGNER RENTS (0008) D M NEUMAN CONSTRUCTION CO - JOHN SCHELL John had beaming comments about the customer service that Jason Love provides. John said Jason goes out of his way to get him the equipment he needs delivered quickly. COLORADO SPRINGS (39) LM ARMSTRONG BRIDGEFORD CONS - WILL ULIBARRI Will stated that mis-communications happen, but Wagner Equipment is always quick to rectify any situations. Will said all the Wagner Equipment employees are kind, friendly and helpful. CONCRETE CRAFT OF COLORADO - MARK SISCO Mark said “I personally want to thank the Wagner and CAT Team for the prompt and efficient work you did for us yesterday in installing the cutting edge. I appreciated you fitting us into your schedule.” COMMERCE CITY - WAGNER RENTS (0012) SEFNCO COMMUNICATIONS INC - JIM ROBERTSON Jim stated that the technician, Josh Grivy , was very professional, very knowledgeable, and did a great job.

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COMMERCE CITY - WAGNER RENTS (0012) CONOCO PHILLIPS DRILLING - JASON BEACH Jason said they have a good salesman, Eric Caplin , whom takes care of him. Jason said Wagner Rents does a good job. P H EQUIPMENT INC - THAD PRECOURT Thad said Wagner Rents is easy to work with and their sales representative, Jimbo Thompkins , is easy to reach and sets up everything they need. DENVER - WAGNER RENTS (0004) ECO SNOW REMOVAL LLC - MARTYN CHURCH Martyn said Wagner Rents provides good customer service and their sales representative, Ron Marek , does a good job. GTH EXCAVATING LLC - DANIEL GUZMANN Daniel said he has a good routine and relationship with his sales representative, Mike DiRenzo . Daniel said Mike always gets him what he needs. EL PASO - WAGNER RENTS (0017) SOUTHWEST LAND WATER PIPE - RAFAEL MUNOZ Rafael stated that he was able to do it all over the phone with Wagner Rents. Rafael stated that he told Hector Tovar what he needed and Hector got back to him with all the information and supplied all the paperwork that was nec- essary to get him an account set up with Wagner Rents. Rafael stated that he is very happy with the service from Wagner Rents and Hector. Rafael stated that he is looking forward to buying & renting more equipment from Wag- ner Equipment. USRC NORTH EL PASO JOB 2083 - JORGE SANCHEZ Jorge stated that he has known Henry Vargas for a few years now. Jorge said that Henry is very responsive and quick to respond to his requests. EL PASO (12) RAYTHEON CO - GREGORY PIKE Greg states that Hector Tovar , the Field Service Manager, worked really well for him. Greg said the Field Service Technicians, Abraham Torres and Edgar Mireles , made the repairs in a timely manner. Greg states that Edgar and Abraham were very thorough and informative with the procedure, including any adjustments that were made and why it was done. Greg is very impressed with Wagner Equipment’s service. BORDER DEMO ENVIRO INC - LISA ALARCON Lisa shared that Israel Moya and Hector Tovar are very responsive. Lisa added though she wants them faster, they do their best to keep her in the loop and are transparent about what is happening with the machine they are work- ing on. Lisa said, “you can’t rush perfection and Wagner Equipment makes that every time.”

Read more on page 6

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EL PASO (12) LINCOLN COUNTY - JOSH HAMMOND Josh stated they really like the technician, Buddy Simpson and the customer service he provides. FORT COLLINS - WAGNER RENTS (0005) CONNELL RESOURCES - JEFF LAUGEL Jeff mentions that everyone at Wagner Equipment is friendly, knowledgeable and easy to work with. Jeff said espe- cially Nathan Smith and Barry Hunt . KEARNEY SONS EXCAVATING INC - MIKE KEARNEY Mike states that they are all great to work with because they always go out of their way. Mike states that Dwight is the lead mechanic, Nate answers the phone and helps out a lot and Barry is the manager. GRAND JUNCTION - WAGNER RENTS (0011) UNION PACIFIC RAILROAD - JOSH GARDNER Josh stated that the staff at the Grand Junction rents location are great, especially Keely Mower . Josh stated that Wagner Rents took care of him and met all his needs. Josh stated that the whole Wagner Rents Grand Junction staff work with him and they are great communicators. GRAND JUNCTION (02) AMERICAN GYPSUM/COLORADO - BRIAN SEELEY Brian stated he uses Wagner Equipment for many things and Wagner always does a good job. Brian commended Mike Bettis . OURAY COUNTY - HARLAN SCHOONOVER Harlan recommends Wagner Equipment. Harlan said he described the part he needed over the phone and Wagner sent him a schematic picture of where the part was and were able to determine the part he needed over the phone. Harlan appreciated this because he did not have to drive 40 miles to look at the part he needed.

WILDERNESS MACHINES LLC - SHANE HOUSEMAN Shane said Chance Winn was very professional. GYPSUM - WAGNER RENTS (0010) SAVVY EXCAVATION LLC - LUKE AIKEY Luke stated Gerald Salani was very easy to work with. HAYDEN (04) BARRY CASTAGNASSO

Barry stated Wagner Equipment is capable, efficient, and work with his schedule. Barry said he has worked with Wagner Equipment for years. Alex Kaiser is the foreman and his knowledge is vast. Tyler Manzanares was the me- chanic and he is very capable.

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PUEBLO - WAGNER RENTS (0002) FCI CONSTRUCTORS INC - DURANGO Scott was pleased with Bryan Gasperetti , stating that Bryan jumped through hoops to get him the equipment that he needed. PUEBLO (03) A S CONSTRUCTION CO - SHORTY BANTA Shorty stated Wagner has good technicians who are “on top of it” and get what is needed to get the job done. Shorty said if the technicians don’t have the answers, they quickly find them. Shorty stated that Mark Mayo is “one great guy” and “the best.” R R CONSTRUCTION - RUSS GILLESPIE Russ recommends Wagner Equipment because they have a sharp service manager, Dave Magnino , who is very knowledgeable. Russ said Carol Archuleta, Cheyenne Cook, Deb Ward do a good job ordering the parts for him as well. SILVERTHORNE - WAGNER RENTS (0015) RKR INC - JEAN THURSTON Jean is pleased with his rental representative DJ Chavez . He said DJ takes good care of him and his company. EVERGREEN NATURAL RESOURCES - DESTRY LUSK Destry stated his salesman, Jerrod Hicks , is very helpful.

TRAVIS CONSTRUCTION - MARK CLINE Mark said he has been dealing with representative, DJ Chavez , he does a good job.

JJ EXCAVATING OF NORTHERN COLORADO - SCOTT MCDONALD Scott states that the service at Wagner Equipment was fast and he appreciated all that Nathan Schwandt did by keeping him informed of what was going on and being knowledgeable of the situation. CONNELL RESOURCES INC - MIKE SCHEMM Mike said Aaron Smith and Jacob Clarkson provide really good customer service, are helpful, and knowledgeable.

Learn More about Loyalty:

Click here and subscribe to the Daniel Group Blog. The Daniel Group is the provider Wagner uses to conduct our customer loyalty surveys. Have questions? Call Talina Jones at extension 3216. HTTP://BLOG.THEDANIELGROUP.COM

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How Bob the Waiter Got a 200,000% tip - An Article by GREGORY CIOTTI This Redditor’s husband , fresh off a root canal operation that left him unable to eat real food for days, was dy- ing for some diner fare. When he finally regained the ability to chew, his wife took him out. She was excited to celebrate his return to the land of real food. After an unusual wait, the husband and wife were finally seated next to a noisy blender at the end of the bar. Problems with the dinner service cropped up almost immediately. Their waiter—“Bob”—hurriedly took their drink orders. He didn’t ask if they were ready to order food. When they finally did, Bob brought out one of the side dishes before the entrées themselves arrived. And it was the wrong side dish.

After a few apologies and a “divine” burrito, the husband and wife were ready to pay the check and leave. When they got the check, they first thought the $0.01 listed was a mistake. Discounts are so often used as last-ditch attempts to salvage a terrible experience that we forget how powerful they can be as preventative maintenance. Restaurateur Danny Meyer, whose restaurants have consistently beat the odds in a very rough industry, talks about hospitality in terms of “good” vs. “great.” With a “good” experience at a store or restaurant, things may go fine. You may get everything you wanted precisely the way you ordered it. But it’s rare for an employee to make you feel special, like they’re on your side. That’s what Bob did here by recognizing something crucial. Few would expect a discount in this situation. And that’s precisely why the discount is so powerful. In the end, the family left Bob a $20 tip—or 200,000% of .01. Not bad for Bob!

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