Customer Expectations in Today’s Demanding World

Customer expectations are defined by how your customers believe each interaction with your company should go. This holds true for any part of the customer journey, from how long they wait to what channels they can use to communicate. Customers want (and expect!) the absolute best, and if you do not give it to them, they are happy to look elsewhere.

What customers want and what they get do not always align, but the stakes are getting higher for any business that falls short of meeting customer expectations. According to the 2022 Customer Experience Trends Report, 61 percent of consumers will switch to a company’s competitor after just one negative experience—a 22 percent increase from the previous year. On the flip side, 91 percent of buyers are willing to spend more with companies that provide good experiences. Those are numbers that should have most companies paying attention. Why? Because those numbers highlight a significant shift in customer demand.

This is a continuation of a trend, an extension of a market reality accelerated by technology. It started with Amazon when they transformed retail through their e-commerce platform and set the bar for delivering convenience, speed, and selection. Uber, Airbnb, and Netflix are other great examples of companies that created on-demand businesses based on what consumers wanted. In response to a global pandemic, customers have grown accustomed to on-demand customer service. Like it or not, your business will be judged by the service they received elsewhere. When businesses take innovative leaps forward, they drive new (higher) expectations among customers.

What caused the shift in customer expectations this last year? The global pandemic accelerated technology and highlighted values consumers already had—convenience, ease, and personalization. As a result, customers had to adjust their buying habits, and businesses had to adapt and evolve, reexamining the systems and strategies that have shaped the industry for years—almost overnight. In many ways, these challenges have opened the door for a long-overdue great retail reset which can help move many retailers into more stable — and potentially more profitable — positions than ever. 

How do you adapt your customer experience to these evolving expectations?

Communication
The importance of communication to a great customer experience is rooted in technological advances. Investing in technology and digital platforms will be critical to addressing consumer demands for flexibility, timeliness, and convenience. That means ‘always being open’ and communicating with customers how they want to be talked to, whether via email, text, chat, phone call, or even on our social media channels.

Personalization
Look to personalize the experience throughout the customer journey, whether pre, during, or post-purchase. Focus the service experience on the customer’s unique needs. Ask how they like to be communicated with. Be clear about the many ways they can reach you. Meet your promises of availability. This could be as simple as using the customer’s name in conversation or targeted discounts tailored to their buying preferences.

Shared Values
Customers want to buy from companies that prioritize diversity, equity, and inclusion in their communities and workplaces. They also want to buy from companies that are socially responsible.

The customer experience has always set the independent retailer apart from its competitors, but it is a new world with new expectations. So, take notice and take action to stay ahead of the market and always have a happy customer.