Claire Dunwood has a pickle. She wants to know how to manage rising customer expectations with fewer resources than she used to have. This episode seeks to help her—and you—do exactly that.

It’s pretty common to hear problems like this today. Responding to rising expectations is easy when there is no limit to the resources you can throw at it. Doing that same thing on a budget is a different kettle of fish. 

We kick off by exploring how expectations form. Expectations for experiences, even for those we've never had, are often built from adjacent or similar experiences, drawing on memories, media, or past interactions. Therefore, customers have preconceived notions about how their interactions with your brand will unfold, even before they’ve engaged with you.

Claire noted that customer expectations seem to be constantly rising. Effective management of rising expectations requires identifying which aspect of the expectations is rising—rational, emotional, or sensory—and whether it aligns with your business goals. We discuss the importance of focusing on the aspects that drive the most value for customers rather than trying to meet every rising expectation.

A key takeaway is the importance of focusing on what matters most to your customers, as highlighted by the Blue Ocean Strategy. This approach suggests excelling in the most important areas to your customers and letting go of everything else. Knowing your customers well is essential, as it helps you decide which expectations to meet and which to disregard, ensuring that you spend your resources wisely.

In this episode, we share practical strategies for managing customer expectations, including understanding customer needs, proactive communication, setting clear boundaries, maintaining consistency, and leveraging technology. These strategies help balance the demands of rising expectations with the reality of limited resources.

In this episode, we also talk about:

• The formation of customer expectations from adjacent experiences

• The categorization of expectations into rational, emotional, and sensory

• The concept of outcome-based prioritization when resources are limited

• The role of transparency and proactive communication in managing expectations

• How to decide whether certain customers are worth the effort based on their expectations and profitability

• Examples of businesses effectively setting and exceeding customer expectations

• The importance of staying agile and responsive to customer feedback