How Customer Expectations Pressure Companies

By Dennis McCafferty

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How Customer Expectations Pressure Companies

By Dennis McCafferty
Tough Crowd

60% of the executives surveyed said their organization faces difficulties in pleasing their customers.
High Bar

82% said their customers have higher expectations than they did three years ago.
Rising Standard

78% of respondents said Internet and consumer app companies are setting a new benchmark for customer experiences in their industry.
Public Humiliation

42% acknowledged that customers use social media to shame their company into doing what these individuals want.
Standing Out

79% believe their product is becoming commoditized, which is increasing the need to differentiate the ways in which they engage with their customers.
Pressure Point: Continuous Improvement

65% of the executives said rising consumer expectations are increasing the need to innovate.
Pressure Point: Market Edge

58% reported that rising expectations have increased competition with other companies.
Pressure Point: Price Factor

52% of respondents said they've had to increase costs to support customer-driven expectations.
Pressure Point: Slipping Sales

30% said customer turnover has grown due to the rise in expectations.
Pressure Point: Markdowns

28% of the executives said they've boosted the amount of discounts they provide.
Pressure Point: Muted Presence

17% said rising consumer expectations have reduced their market share.
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Thanks in large part to technology advances, enterprises are facing increasing challenges when it comes to meeting customer expectations, according to a recent survey from Lithium Technologies. With its real-time nature and its ability to connect customers directly with brands in a public forum, social media has given rise to a new consumer—one who expects responses immediately and demands a higher level of service than ever before from brands. At the same time, more start-ups are introducing disruptive technology and market ideas to provide customers with new and affordable purchase options, and that puts even more pressure on traditional companies. "The consumer is forever changed," says Rob Tarkoff, president and CEO of Lithium Technologies. "Social media and the rise of nontraditional Web-based entrants into established industries have evolved their expectations. Consumers use digital channels to find and share information, reviews and insider tips. At the same time, they are using those channels to suggest improvements and sometimes shame brands into solving their problems. Business leaders are taking note of what this means to their image and bottom line, and [they are] rushing to find innovative ways to adapt." More than 310 corporate executives took part in the research, which was conducted by Harris Poll.

This article was originally published on 2015-07-13

Dennis McCafferty is a freelance writer for Baseline Magazine.