Customer expectations can change depending on the industry and type of audience a business caters to. There are high-expectation customers especially when a high-investment product is involved. A notable example will be in the telecommunication and automobile industry. Apple users might expect brand new additions to new phone series every year. This is a part of a high expectation product. In this blog we will understand the meaning of customer expectations, the various types and tips to manage it. 

What are Customer Expectations?

Customer expectations are the perceived standards that potential customers have before engaging with a new product or service. These expectations are shaped by past experiences, marketing messages, word-of-mouth, and the promises made by the company. They serve as a benchmark against which customers measure the performance of businesses.

Customer needs and customer expectations are often conflated despite being different. Customer needs refer to the fundamental requirements that must be met for a customer to consider a product or service. For example, a customer needs a meal to be nutritious and safe to eat. In contrast, customer expectations are the standards by which they judge how those needs should be met. This means expecting the meal to be served quickly and with excellent customer service.

In different industries, customer expectations can vary significantly. For instance, in the retail sector, customers expect a seamless shopping experience, timely delivery, and a hassle-free return policy. In the hospitality industry, guests expect cleanliness, courteous service, and quick resolution of any issues. Understanding and meeting these expectations can make a substantial difference in customer satisfaction and loyalty.

Why is it important to understand customer expectations?

The success and competitive stance of a business is determined by products, service and post-sales service. How the brand caters to its consumer base can dictate industry benchmarks. 

• It directly impacts customer satisfaction. When businesses meet or exceed expectations, customers are more likely to have positive experiences.
• Positive experiences encourage repeat buyers. This is also responsible for positive word-of-mouth referrals, which can significantly benefit the business.
• Brand loyalists develop a sense of trust and reliability with the business. This loyalty translates into long-term relationships. Loyal customers are less likely to switch to competitors and are more inclined to spend more on the brand they trust.
• Understanding customer expectations can improve market reputation. A company known for meeting customer expectations (close the customer feedback loop) will stand out in the industry. This reputation can enhance market positioning and create a competitive advantage.
• When customers are satisfied and loyal, their lifetime value increases, contributing to higher revenue margins. Moreover, meeting expectations can reduce customer churn rates, further stabilizing income.

5 Types of Customer Expectations

Customer expectations can be broadly categorized into five types: basic, explicit, implicit, static, and dynamic.

1. Basic expectations: These are the fundamental needs such as product availability, functionality, and safety. For instance, customers expect an online retailer to have the product in stock and deliver it on time without defects.
2. Explicit expectations: These are clearly stated or written requirements that customers have, often communicated directly or through contractual terms. Examples include warranty details, service agreements, and advertised features.
3. Implicit expectations: These are unspoken, assumed standards based on past experiences and societal norms. Customers may not explicitly state these expectations, but they play a key role in satisfaction. An example is expecting friendly and helpful service in the hospitality sector. Implicit expectations can play a key role in long term customer retention.
4. Static expectations: These are fixed and unchanging expectations that remain constant. They include safety standards, basic service delivery, and product performance reliability. For instance, customers expect a healthcare service to maintain a certain level of hygiene and professionalism. Static and basic expectations can fall under the same umbrella. These expectations play a crucial role in bringing in potential customers.
5. Dynamic expectations: These are evolving and changing expectations that adapt over time. It is influenced by technological advancements, market trends, and competitive innovations. For example, with the rise of e-commerce, customers now expect same-day delivery options and personalized shopping experiences.

How to Identify Customer Expectations?

Identifying customer expectations involves several strategies, each offering unique insights into what customers value most.

1. Customer surveys and feedback: Collect feedback directly from your customers at various critical touchpoints. Post-purchase surveys and after sales feedback can give you  in-moment responses. Ask specific questions about customer preferences, needs, and experiences especially if the customer journey of a product is lengthy. Catering to expectations can be a long term process when certain industries (such as banking, automotive) have a lifelong user journey. 
   
2. Social media monitoring: Social media platforms are valuable sources of unsolicited customer feedback. Monitoring social media conversations can provide insights into authentic customer conversations and how they perceive the brand. Tools like social listening platforms can help track mentions, sentiments, and trends related to customer expectations.
   
3. Customer interviews: Conducting one-on-one interviews with customers allows for in-depth discussions about their expectations. Interviews can uncover detailed insights that surveys may not capture. To obtain authentic perspectives, make sure that you offer confidentiality to avoid social desirability bias.
4. Data analytics and trends: Analyze customer data in real time to cover gaps, attend to grievances and view patterns and trends that indicate expectations. Businesses can use data analytics tools to examine purchase history, customer interactions, and feedback to identify common expectations. Note that patterns can change and are dictated by the dynamic market shift. For example, more Gen-Z crowd are willing to answer surveys if routed via WhatsApp messenger than answering feedback over desktop emails.

Tips to Meet and Exceed Customer Expectations

Meeting and exceeding customer expectations requires proactive and strategic efforts. Here are practical tips for businesses:

1. Collect feedback regularly: Continuously gather customer feedback using surveys and tools like Merren. Regular feedback can help CX professionals identify and address pain points.Get real time data and close the feedback loop with Merren.
   
2. Employee training: Ensure that employees understand customer expectations and are trained to meet them. Training programs should focus on customer service skills, problem-solving, and communication. Well-trained employees are better equipped to deliver exceptional experiences.
   
3. Technology integration: Leverage Customer Relationship Management (CRM) systems to manage and analyze customer interactions. Automate manual work to avoid campaign errors. Merren offers various CRM integrations that can help you schedule campaigns at touchpoints, handsfree.
   
4. Personalization: Tailor products and services to individual customer preferences. Use data analytics to offer personalized recommendations and experiences. Netflix does a commendable job with AB testing and offers personalized shows based on the viewers history. Personalization creates a more engaging and satisfying customer journey.
   
5. Proactive communication: Keep customers informed at every stage of their interaction with the business. Proactively communicate about order statuses, service updates, and any potential issues. Transparent and timely communication builds trust and shows customers that their expectations are being prioritized.
   

Overcoming challenges in meeting customer expectations

Meeting customer expectations can be challenging due to various factors. Here are common challenges and strategies to overcome them:

1. Clear communication within the team: Ensure that all team members are aligned with the company’s commitment to meeting customer expectations. Regular training sessions, internal communication channels, and clear guidelines can help maintain consistency in delivering on expectations.
   
2. Regular market and competitor analysis: Stay informed about market trends and competitor strategies. Regular analysis can reveal shifts in customer expectations and help marketing departments adapt accordingly. This proactive approach ensures that businesses remain competitive and relevant.
   
3. Continuous improvement based on customer feedback: Use customer feedback to drive continuous improvement. Implement changes based on feedback and track the impact on customer satisfaction. People are willing to offer genuine responses when their feedback gets valued and heard by the business.
   
4. Leverage technology for efficiency: Use technology to streamline processes and improve efficiency. Automation tools can help manage customer interactions, track issues, and ensure timely responses. An efficient system minimizes delays and enhances the overall customer experience.
   

Conclusion

In conclusion, understanding and meeting customer expectations are critical for business success. By defining customer expectations, exploring their types, and providing actionable tips, this guide aims to offer comprehensive insights for customer experience professionals. The ability to align business practices with customer expectations leads to better satisfaction, loyalty, and market reputation. To collect real time customer feedback, switch to Merren for a 14 day free trial. Discover our AI capabilities and streamline your campaigns with smart integrations and omnichannel platforms.