Finding a Competitive Edge

Every business is either looking for a competitive edge, or should be. Competition, regardless of industry, is perhaps at its highest level ever, especially given the online presence that most companies now have. In years past, two pizzerias on opposite sides of town might have been scarcely aware of one another; these days, they’re both listed in your favorite food-delivery app, facing off head-to-head. Another example would be a locally owned hardware store that once only dealt with that big-box hardware chain down the road; now it has to worry about online warehouses selling the same tools, sometimes for a discount too great to ignore.

Local businesses can’t afford to price chase, as that’s only a race to the bottom where the only reward is low profit margins and lower survivability. Instead, small businesses need that competitive edge, that je ne sais quoi that makes them stand out.

The best competitive edge is the high-level customer experience (that is, the entirety of all your customer’s interactions with your business). However, there’s a fine line between striving to exceed expectations and overextending ourselves to the point of unsustainability.

Overcommitment

The temptation to go above and beyond in the hopes of delighting your customers (thereby encouraging their repeat business and their referrals) is high, but let’s think about the pitfalls of going too far:

1. The push to constantly exceed customer expectations can lead your employees to burnout. The quest to dazzle customers could lead to overwork and stress resulting in the opposite of your goal: plummeting customer service.
2. When you go overboard all the time, customers begin to expect all of their interactions with your business to be at this unrealistic level. These efforts are impossible to maintain, which will only lead to future disappointment when you’re unable to meet those impossibly high standards all the time.
3. Lastly, going above and beyond too often will inevitably lead to a drain on your resources. When you overcommit with one customer, the net result will be that you’ll be unable to adequately meet the needs of another. The tradeoff isn’t worth it.

Expectation Management

Instead of falling into the trap of overcommitment, we should instead strive to strike the right balance with sensible strategies:

1. Use clear communication when setting expectations. This means being honest about what you can deliver and the timeframes required. As the old saying goes, it is better to underpromise and overdeliver. As such, make sure to educate customers with documentation or explanations of what products and services you can offer.
2. Maintain consistency rather than riding the highs of offering out-of-this-world service and falling into the lows of offering an average experience.
3. Always be responsive as a way of meeting and even exceeding customer expectations. Keeping the lines of communication open is critical to maintaining a healthy relationship with your customers. Silence will poison those relationships quickly.
4. Establish different levels of service in order to accommodate the different customer niches you serve; for example, you might offer premium level services for clients willing to pay more, all the while ensuring you maintain a base level of service quality for everyone.
5. Keep reassessing your business’s processes with customer feedback and mystery shopping data to identify areas needing improvement. Use this information to make gradual changes rather than face massive upheaval all at once.

Exceeding Expectations Thoughtfully

While we can’t underscore the importance of not overburdening your business with the unrealistic goal of wowing every single customer, there are many small yet impactful ways to exceed customer expectations that won’t break you:

1. Personalize your interactions with customers, treating them as more than an order number. Learn and use their names, and also make sure you record their preferences or purchase histories to tailor their individual experiences.
2. Occasionally, you can actually go the extra mile by offering something a little extra, such as a discount, a handwritten note, or whatever else makes sense for your business. Make these overtures sparingly to leave lasting positive impressions without straining your business.
3. Pay close attention to the feedback you receive, whether directly from your customers, through feedback surveys, or mystery shopping reports. Show your genuine interest in your customers’ opinions by acting on that feedback to improve their experiences.
4. Lastly, keep your customers informed on whatever is going on with your business (or even what might be relevant within your community). Regular updates about promotions or product changes make a lot of sense, of course, but if your business stays connected within your community by sponsoring local events (e.g., a little league team), you should announce those events and encourage your patrons to join you in supporting them.

Managing your customers’ expectations is crucial to running a successful business. While your desire to exceed expectations can lead to delighted customers, it’s important to remember that you do so in a sustainable and balanced way. Strive for consistency, employ clear communication, and make thoughtful gestures that genuinely enhance the customer experience instead of going overboard. When you find the right equilibrium between meeting and exceeding expectations, you will build long-lasting relationships with your customers while maintaining your business’s ability to thrive.

The Brandt Group would love to be your partner on this journey towards offering a superior customer experience that enriches the relationship between your business and your customers. Using our customer feedback and mystery shopping tools, you can ensure that you win customer loyalty with a competitive edge that won’t dull from overuse. Let’s make your goals a reality starting today.