Customer expectations: Definition, types, and tips

With the increased utilization of the internet for providing new services and products, there’s more competition across all markets than ever before. This is great for consumers, and can also be beneficial for businesses; of course, that’s assuming that they’re able to satisfy the ever-evolving standards of their customers.

When organizations are consistently able to meet or exceed customer expectations, individuals can become advocates for a brand, singing a company’s praises across social media applications, community forums, and review platforms. Conversely, when expectations aren’t fulfilled, consumers have access to an endless supply of competitors to which they can switch, while negative word-of-mouth unfortunately often spreads much faster than positive sentiments.

Today, we’ll dive into what customer expectations are, why they’re important, and the steps you can take to ensure that your business is always meeting or exceeding them.

What are customer expectations

Customer expectations encompass the standards, desires, and anticipations customers have regarding the offerings and experiences provided by a business. These expectations are shaped by a variety of factors including past experiences, brand reputation, and marketing messages. They serve as a benchmark against which customers evaluate their interactions with a company.

Why is meeting customer expectations important

Satisfying customer expectations is paramount for organizations as it directly impacts retention and customer loyalty. Happy customers are more likely to become repeat buyers and advocates for a brand, leading to increased sales and positive word-of-mouth promotion. When companies regularly meet or exceed customer expectations, they build credibility, promoting long-term relationships that are essential for sustained success in a competitive market.

Additionally, providing excellent customer service enhances brand reputation and differentiation. In today's interconnected world, where consumers have access to abundant information and unlimited options, a positive reputation can set a business apart from its competitors. When customers consistently receive offerings that align with their expectations, they develop a positive perception of the brand, increasing the likelihood of choosing it over alternatives. 

It’s integral to ensure that you’re persistent in always meeting customer service expectations – 86% of consumers will opt for a competitor after just two negative experiences with a brand.

Types of customer expectations

There are several types of expectations that customers may hold in regard to your business’s products, services, or experiences. Some of these may be clearly communicated to you, while others are typically thought to be assumed. It’s vital that you’re aware of all the different kinds of standards in order to continue meeting your customer’s needs effectively.

Explicit 

Explicit expectations are those that are clearly communicated by the customers themselves. These are typically expressed through direct interaction with a business, whether it be through inquiries, customer feedback, or requests. Explicit expectations can manifest in various forms, including specific product features desired, service level requirements, or particular outcomes sought. They provide organizations with clear guidelines on what consumers are seeking, enabling them to tailor their offerings accordingly.

Implicit

Conversely, implicit customer expectations are those that are not directly stated by customers, but are rather inferred based on broader societal standards. Unlike explicit expectations, which are clearly communicated, implicit expectations are often subconscious and not necessarily articulated by customers.

For instance, individuals implicitly expect that a cup of coffee will be hot, freshly brewed, and served in a clean cup. While this may not be explicitly specified, it directly impacts customer satisfaction and can significantly influence future purchasing decisions.

Interpersonal

The standards that customers have regarding their interactions with representatives of a business are known as interpersonal expectations. These encompass various aspects of interpersonal communication, behavior, and relationship-building throughout the customer journey.

Digital

In today's digital age, consumers expect convenient and personalized experiences across all digital channels. These standards are influenced by technological advancements, evolving consumer behaviors, and best practices established by industry leaders.

Meeting these expectations may involve employing an omni-channel strategy to enhance accessibility, offering self-service options to improve availability, or fine-tuning customer profiles to upgrade personalization efforts.

Dynamic performance

Dynamic performance expectations refer to the fluid nature of customer standards regarding the performance of products, services, and experiences. Unlike static expectations that remain relatively unchanged over time, dynamic performance expectations evolve in response to market trends and competitor actions. Businesses must continuously monitor these expectations to continue meeting the evolving preferences of their base.

Examples of customer expectations in 2024

Depending on which space your organization operates within, customers will hold different expectations on the services that they receive. Some bases may place an increased emphasis on speedy service, while others may focus more on safety or value for their money.

Quick service

In the fast-food industry, consumers almost always anticipate quick service when utilizing the drive-thru at chains like McDonald's or Burger King. This expectation is reinforced by the industry's emphasis on convenience, with businesses implementing streamlined processes, order-ahead apps, and dedicated staff to ensure prompt order fulfillment. Failure to meet this expectation can lead to individuals opting for competitors who offer faster service.

Safe service

When traveling by plane, passengers expect safe passage, which is demonstrated through the rigorous security measures implemented by airports and airlines. Comprehensive safety protocols are always in place, which usually include thorough baggage screening, passenger screening, and adherence to aviation safety regulations. 

Customers also anticipate clear communication regarding safety procedures and emergency protocols. Airlines invest heavily in safety training for staff, maintenance of aircraft, and compliance with regulatory standards to ensure passengers feel confident in the reliability of their services. 

Personalized experience

A prime example of an industry where personalized experiences have become a standard is in hospitality. Particularly at higher-end hotels, such as the Ritz-Carlton or Four Seasons, guests expect tailored customer service experiences that cater to their individual preferences. This typically translates into personalized welcomes, customized room amenities, and intuitive service that fulfills guests' desires. Hotel staff and service representatives often go above and beyond to remember specific preferences, such as preferred room temperatures, pillow types, or dining options, to create a sense of exclusivity.

Studies indicate that 76% of individuals are more likely to purchase from companies that personalize the customer experience (CX), indicating that these efforts can lead to an immediate return on investment (ROI)

Value for money

Customer expectations for high-quality offerings at a reasonable price can be observed in discount retailers such as Walmart or Target. This encompasses not only competitive pricing but also factors such as product quality, variety, and overall shopping experience. These retailers invest in strategies such as bulk purchasing, efficient supply chain management, and private label brands to offer competitive pricing without compromising on quality.

7 ways to meet customer expectations in 2024

As with any system, it’s typically easier to break your efforts down into subcategories to help simplify processes and focus on one task at a time. When you’re successful in each individual effort, you can generally be assured that your approach will be effective as a whole

Here are some best practices to follow to help ensure your organization success in meeting customer expectations:

1. Get to know your audience

Sufficiently understanding your target audience allows for the personalization of products, services, and marketing strategies to align with their preferences and needs. Organizations can develop offerings that better resonate with users by gaining insights into a customer base’s demographics, psychographics, and purchasing habits. 

For example, a fashion retailer targeting young adults may choose trendy designs and use social media platforms for marketing, knowing that this demographic is more likely to engage with these strategies.

94% of service leaders believe that real-time analytics are paramount in meeting their customer’s expectations; you’ll want to verify that you’re employing a capable reporting software to gather this data.

2. Make sure you’re reaching the right buyers

Once you possess a clear understanding of your target audience, leverage tailored marketing tactics to reach them where they’re most active. Utilize channels such as social media, search engine optimization (SEO), and content marketing to deliver personalized messaging that speaks to your audience’s interests. 

For instance, if target buyers are active on Instagram, it might be wise to invest in influencer partnerships to capture their attention and drive engagement. By selecting the right channels, you can maximize your reach and connect with the right buyers at the right time.

3. Look for new ways to exceed customer expectations

It’s always recommended to prioritize gathering feedback from your customers through various channels such as surveys, social media, and direct communication. Analyze this feedback to identify areas for improvement and uncover unmet needs. Also, remember to stay abreast of industry trends, technological advancements, and competitor actions to identify even more opportunities for innovation.

Perpetual progress has become a standard in CX, so it’s vital that you allocate proper resources to these efforts; 55% of consumers now expect improvements in an organization’s CX year-on-year.

4. Set clear standards for your team members

Make sure to establish precise guidelines for employees by unambiguously communicating a roadmap for delivering consistent and high-quality service. Clearly define standards that outline the specific behaviors and performance metrics expected from support team members in various customer-facing roles. This clarity empowers staff to execute their tasks with confidence, ensuring a uniform CX across all touchpoints.

5. Be as transparent as possible

Transparent communication fosters trust with your customer base by openly sharing information about pricing, policies, product features, and business practices. When consumers are more informed about an organization's offerings and operations, it reduces the likelihood of misunderstandings or dissatisfaction. Moreover, straightforward communication during times of change or disruption helps to maintain trust by keeping customers informed and involved in the decision-making process.

6. Develop a customer-centric culture

Cultivating a customer-centric environment instills a deeper understanding of consumer needs across all levels of an organization. By prioritizing a customer-first mindset, businesses can better anticipate and respond to customer expectations. This alignment between organizational values and consumer needs enables companies to deliver personalized, timely, and relevant solutions that resonate with their target audience.

A prime example of this is Amazon's relentless focus on customer satisfaction, which is ingrained in its company culture from top to bottom. One of its core principles, known as ‘customer obsession,’ emphasizes prioritizing the needs of customers above all else. This approach aims to deliver personalized experiences, fast delivery, and seamless transactions that exceed user expectations.

7. Evaluate your competitors

Regularly analyzing competitors allows businesses to benchmark their own offerings and CXs against industry standards. By examining what competitors are doing well and where they may be falling short, organizations can identify areas for improvement within their own ecosystem. This competitive analysis enables companies to stay ahead of emerging trends and customer preferences, resulting in more innovation and differentiation among their offerings.

Begin enhancing your customer experience today with Freshdesk Omni

Freshworks Freshdesk Omni bundles Freshdesk’s ticketing capacity with Freshchat’s conversational AI interface, creating a full-feature customer engagement platform. Our clients enjoy Freshdesk Omni’s useful features such as omni-channel messaging, robust self-service potential, extensive collaboration tools, and much more. Moreover, our ever-capable chatbots are designed to “delight, not just deflect,” ensuring that customer conversations are personalized and engaging, rather than robotic and impersonal.

Take it from one of our satisfied clients, Maschendra Y., who extols Service Suite’s customization and automation capacity, saying, “The level of customization is mind-blowing. I could tailor everything to suit our specific needs—from automating repetitive tasks to creating personalized templates that reflect our brand's identity. And let's not forget the analytics and reporting tools—insightful and actionable data at our fingertips, helping us make informed decisions and continuously improve our service standards.”