The essential principles of customer service — respect, communication, exceptional service — are timeless. Customer expectations, on the other hand, are not. Now more than ever, customers are empowered with more access to information and more control over how they choose to shop. In this piece, you’ll learn the current state of customer expectations, what’s driving increased demand, and how a 3PL service provider will help you keep pace — and outperform — the competition.
Defining Customer Expectations
Customer expectations are a set of ideas and feelings about a product, service, or brand. Based on past interactions with that product or service (whether yours or a competitor’s), a customer will form opinions — or expectations — about how they expect a product or service to affect their lives.
Customers expect companies to meet their expectations — why wouldn’t they? However, global brands like Amazon have severely affected what customers expect from brands both big and small. This makes the competition — especially in e-commerce — all the tighter.
How Customer Expectations Affect Business
What and how a customer thinks about your business affects how they interact with it. According to a recent study, 60% of large organizations are actively working to increase a positive customer experience. Another study found that customers are likely to spend 140% more after a positive experience with a company.
To grow in the future, companies have to think about managing, meeting, and exceeding customer expectations in the present. Failing to do so is ceding ground to your competitors — territory you may never get back if your customers experience a positive interaction with another company.
The Evolving Landscape of Customer Expectations
Customer expectations have and continue to evolve for a number of reasons, including societal and economic changes. Let’s explore three of the top expectations driving the evolution of consumer behavior.
#1 Increased Demand for Customer Service
A study by Microsoft found that 54% of customers have higher expectations about customer service today than they did a few years ago. Companies could choose to look at this increased demand for customer service as a result of consumer entitlement. However, the shift in caring about a business’s values — from free trade coffee to ethical nutrition — has also impacted the relationship a consumer has with a business.
In fact, one in three consumers walks away from a brand they love after just one bad experience. A study by FullStory found that 84% of people say the experience of a brand matters just as much as the product or service they offer.
#2 Greater Consumer Power
Competition in just about every industry is growing, which means the focus on keeping customers happy is all the more important. Research by Accenture shows that 48% of customers expect specialized treatment for a history of being a good customer.
Couple that with the impact of online reviews and competitive industries, and the power in the hands of the consumer is greater than ever before.
#3 Digital Natives In a Digital World
Digital natives — generally understood to be anyone born after 1985 — shop differently. Already accustomed to online shopping and quick delivery, the way the Millennial and Gen Z generations shop (or expect to shop) reflects their upbringing.
Studies show that brick-and-mortar stores will stick around and continue to be important. But whether it’s physical or online, the near-instant gratification of technology and online shopping has affected the consumer psyche of millions of younger consumers across the world.
The world of mobile phones and ubiquitous broadband moves fast, which means the modern consumer expects their favorite companies to, as well.
How Do Customers Form Expectations About Your Business?
We briefly touched on certain behaviors affecting customer expectations, but it’s important we cover how individual consumers form their opinions about your business.
#1 They Experience Your Competitors’ Service
A classic example of cost competition is when your competitor is offering the same product or service as you but at a lower price. But continually running the price of a product or service down will eventually hurt your profit — that’s where a good customer care experience comes into play.
If your direct competitor is offering easy returns, quick shipping, and fast delivery, along with easy-to-use platforms for an enhanced shopping experience, then you must do the same. If a customer had a negative experience with one of your competitors that caused them to look elsewhere, they’re expecting you to excel in the areas your competitor couldn’t.
#2 They’ve Experienced Your Service In the Past (Or Heard About It from a Friend)
Some consumers develop opinions about your company without ever interacting with it personally. How? Through word of mouth marketing — which can be positive or negative. On average, consumers tell nine people about a positive brand experience, versus telling 16 people about a negative one.
A customer with a negative experience of your brand will likely tell their friends (or take to writing an online review), which can affect customer expectations of your company before they’ve even had a chance to interact with you.
#3 They’ve Read Reviews About Your Business
Bad news travels fast. 93% of consumers report that online reviews affect their purchasing decisions. Exceptional customer service and an easy purchasing process will help your customers form positive assumptions about you.
5 Ways a 3PL Service Provider Can Help
Understanding the importance of customer expectations is a necessary first step. But actually exceeding them is another — this is where your 3PL service provider can help. Let’s explore 5 ways your logistics partner can help you keep up with meeting consumer demand and exceeding expectations.
#1 Personalization
80% of customers say they’re more likely to purchase from a company that offers a personalized experience. Whether it’s pre, during, or after the purchase, customer expectations are growing to appreciate a product that feels tailor-made for them.
For instance, brands like Gainful offer performance nutrition with a personalized touch, including the customer’s name on the packaging. In this case, your 3PL service provider would need the capabilities to accommodate personalization in the kitting and packaging process. Doing so can create an enhanced customer experience that elevates the unboxing experience.
#2 Quality Customer Service
Every customer wants to be treated like a VIP. 89% of customers are more likely to purchase from a company that has a reputation for exceptional customer service — even if the prices of their products or services are higher than the competitors.
A large part of the customer experience — especially in e-commerce — is made up of quick and accurate shipping and easy return policies. To excel in these areas, you need to make sure your logistics partner is highly-skilled in 3PL order management and has proven success rates in order picking accuracy, kitting, shipping, and reverse logistics.
#3 Up-to-Date Knowledge
An experienced 3PL in supply chain management can help you navigate the supply chain and foresee any issues coming down the line. You also want to be sure your 3PL service provider is capable of helping you get access to the best shipping rates, understands shipping zones, and knows what supply chain KPIs matter most.
Knowledge is power, and a 3PL that knows how to effectively and efficiently store and ship your inventory will help you best serve your customers.
#4 Easy Shopping Experiences
Customers want to shop your business’s products and services on the platforms they’re most comfortable with. When partnering with a 3PL, be sure they offer e-commerce integration that’s easy for your customers to use. An overcomplicated online shopping process can lead to frustrated customers, cart abandonment, and even incorrect orders.
At Jay Group, our e-commerce API integrates with e-commerce platforms, marketplaces, and technology providers (like Shopify, WooCommerce, Amazon, and more) to streamline your data and enhance your customers’ experience.
#5 Fast Delivery
Customers want fast delivery. In the past, standard delivery options were shortened to 3-4 days. With the advent of Amazon Prime, customer expectations grew to want 2-day or even next-day shipping. To reach your audience in a timely manner, it’s good to find a 3PL order fulfillment partner with multiple warehouses across the country that accommodate quick shipping and delivery.
Partnering with a 3PL with strategically based warehouses can also help you cut down on shipping costs by decreasing the number of postal zones a product must travel through. It may even allow you to offer free shipping, something customers are beginning to expect more and more. In fact, a RetailMeNot survey found that 64.3% of respondents report shipping costs as one of the most important factors in their purchasing decision.
Trust Matters
People buy from businesses they trust. At Jay Group, we’ve established a reputation — through order accuracy, on-time shipping, and inventory accuracy — as a 3PL you can trust and depend on. Your customers will likely never know who we are or have to care since we exist to make your business look and function as well as possible.
At Jay Group, we’re here to help you succeed no matter how competitive your industry. Contact us today to see how we can partner with you.
