In business, we talk about the importance of exceeding customer expectations.  Here are some details on how you can do that on a customer by customer basis.

6 Reasons Why Understanding Expectations is Important

#1.  It lets you know what service levels are expected on an individual basis.

We often talk about customer expectations as if they were universal – as if everyone was the same.

Of course, this is not the case.  People may have different perceptions of what you do and what they think they should get from your work.

For many types of services, certain customers will value specific aspects of what you do.  It’s important to get on the same page with them.  Focus on what it is they want most from you and make sure you’re consistently excellent in that area.

Likewise, there may be certain things you do that a particular customer doesn’t really care about.  Put those aside.

Value is a perception affected by individual circumstances, not a static reality.  Know what each of your customers values – and use that knowledge to your advantage.

#2.  Team focus on customer expectations.

There are a couple of logistical challenges to individualizing customer expectations.

The first is that everyone on your team needs to be aware of each customer’s preferences.  Your customer service needs to be organized so that staff knows there isn’t just one way of doing things.  You tweak your communication and service delivery based on what you know about individual customers.

The second is that you have to record this information.  Unless your customer base is quite small, staff won’t be able to remember what needs to be focused on for individual clients.

Both these problems are solved by using customer relationship management (CRM) software.  With software, you can note customer preferences and communication history so anyone dealing with them can look them up and be aware of their expectations.

Given that you can use CRM software for free,  there is no reason not to take advantage of it.

#3.  Set and correct customer expectations.

While it’s true that you want to be flexible in terms of customer needs and preferences, it’s not true that people simply get to make things up based on what they hoped for.

It’s not uncommon for new customers to create an idea in their mind about what your service will deliver.  Sometimes this idea has little basis in reality.

Often, they create this idea based on what they hope will happen.  Sometimes they misinterpret your sales or marketing material.

Either way, it’s important to correct these errors and set realistic expectations from the beginning.  Dispel any false notions and make sure that you can actually meet the customer’s expectations.

If you don’t get this right from the beginning, most customers won’t be forgiving when they realize you don’t do what they thought you did – even if they created the false expectation.  Get everybody on the right page from the beginning.

#4.  Deepen your understanding of customers to broaden their expectations.

When you seek to really understand what your customer’s expectations are on an individual level, you’ll avoid the major problem of false expectations.  This understanding also leads to new opportunities.

In the sales process, you often only touch on part of what you do.  In other words, their expectations are limited.  You could be doing more to provide them value.

As you get to know them better, you’ll also find ways to broaden their expectations, which can lead to up-selling opportunities.  As you discuss your services, they’ll say Oh, I didn’t know you guys could do that.

Make sure you’re not under-selling because expectations are too low.  If your customers have a problem you can solve, it’s up to you to make sure they understand how that works.

#5.  Market research.

Understanding customer expectations is excellent market research.

In some cases, you’ll uncover customer expectations/needs that you can’t meet – but realize you could with an additional product or service.

In fact, one of the best places to get ideas for how to improve or expand your services is the conversations we’re discussing.  People will tell you what they’d really like, and they’ll discuss problems that develop.

These can turn into ideas for new products or services you can offer to meet growing expectations.

Remember that your customers are selfish.  They don’t care about what you did yesterday.  They want to know what you’re going to do for them tomorrow.  As you uncover more of their needs, plan new offers to meet those expectations.

# 6.  Exceed Expectations

You have to understand your customer’s expectations to take an essential next step:  Exceed them.

Exceed expectations is kind of a business cliche, but like many overused terms, it gets that way because it’s important.  To retain customers and maximize their lifetime value, you want to provide value at unexpected levels.

When you talk with customers, read between the lines to discover things that will be happy surprises.  Infer what would please them and provide it without asking.  Go the extra mile to make sure the work you deliver is exceptional.  Be kind and giving.  Sometimes small gestures like thank-you cards make a big difference.

Exceeding expectations requires a major commitment to your customers.  It also requires that you really understand what their expectations are to begin with.

 

Here’s How You Exceed Customer Expectations – 5 Tips

#1.  Be Proactive About Issues

Mistakes get made.  Issues arise.  We all get this.

What we don’t like as customers, however, is learning about this after the issue becomes a full-blown problem.

If there is a delivery, timeline, or quality issue with your work, the best thing you can do is get ahead of it.  Tell your customer what’s happening and let them know you’re working to fix it.

You’ll be amazed at how this diffuses what would otherwise become full-blown problems.  Instead of a failure to meet expectations undermining trust, your proactive effort and honesty build trust.

Perfection is an unrealistic expectation regardless of what you do.  If you’re proactive about handling problems, that’s another way of exceeding expectations.

#2.  Listen

An unexpected issue arises and the client calls in a less than happy state of mind.

Don’t argue with them.  Let them vent, even if it takes the better part of an hour.  Just listen.

Then acknowledge the problem and formulate a solution.   Make sure you understand how they feel expectations were not met so your efforts remedy the problem as they perceive it.

Empathy goes a long way in these situations, as does really understanding the problem.

Also, remember you have a strike against you here.  Make sure the solution you put into place works.  If it circles back again, you’ll be far under where expectations are set, on your way to losing the client.

#3.  Send Handwritten Notes or Gift Cards

A latte from Starbucks does more to exceed expectations than most people realize.

If a problem occurred, reach out to your client with a quick handwritten note and a gift card to Starbucks or a local restaurant.

Personalized, considerate gestures like this are rare, which means when you make that effort you’re exceeding expectations in another way.  You’re saying you really care about their business and respect their time.

We’ve had clients who turned from unhappy about a problem to giving us a positive review online just because we made this personalized effort.  If most of your competition doesn’t reach out in this way, doing so will exceed people’s expectations.

#4.  Ask for Help and Refer Clients to the Right Solution

A sure-fire way to get into the gutter with expectations is to have a problem develop then just go straight into upselling mode.  If people think the only way to get anything done with you is to spend more money on your solution, you’re going in the wrong direction.

Instead, seek to really understand the customer’s problem and find the best solution.  Maybe it is something you offer, but if it’s not don’t shy away from referring them to something that will work.

Transparency and honesty are cornerstones of customers’ expectations in digital business.  If you can’t honestly help someone find the best answer (without considering how it impacts your bottom line), you’re not meeting people’s expectations today.

#5.  Identify Critical Moments Where Expectations are Most Important

For many services, there are certain moments in the relationship with new customers where problems tend to arise or opportunities are strongest.

Identify these moments and plan to work them in your favor.  If a process tends to drag out, plan for it, then under-promise and over-deliver on the time frame.  You know it tends to take a week and can take a bit longer.  Tell the customer to expect completion in two weeks, then come in faster.  Now you’ve exceeded expectations instead of failed on a promise.

Set your benchmarks so you can over-deliver, and make sure to communicate with customers at those times.  Use your CRM software to send staff updates and reminders, and automate email communication when possible.

Customer expectations tend to be black or white when it comes to long-term retention.  People dump businesses that fail to meet expectations.  They’re indifferent to businesses that merely meet expectations.

But a business that exceeds expectations (both in reality and perception) keeps customers for their lifetime.  That makes understanding customer expectations an important part of both your strategy and execution.