It’s a common perception that customers tend to remain loyal to companies that try to go above and beyond to satisfy their needs. However, the latest research clearly contradicts this belief.

Recent research shows that customers only want a simple and quick solution to their problems. Going too far beyond what is expected may even backfire if it leads to customers feeling uncomfortable or suspicious of the company’s motives.

So, why do companies still try too hard to please customers by offering refunds, free products, or free services?

Let’s find out.

Why Exceed Expectations?

The reason why many customer service organizations emphasize exceeding customer expectations is due to the widespread use of customer satisfaction (CSAT) scores.

Around 80% of customer service organizations rely on CSAT scores as a means to assess customer satisfaction rates. As a result, they assume that if this score is high, their customers are loyal to a particular company or business.

When it comes to customer loyalty, it is important to understand the role that customer service plays in this regard. While customer service may not be the most significant factor in increasing loyalty, it can certainly have a negative impact on it.

In fact, studies show that customers are four times more likely to defect to a competitor if they experience a service-related issue without considering anything else.

So, it’s more important to make sure your customer don’t defect and that your customer service doesn’t lead to frustration and dissatisfaction, instead of trying too hard to please them.

Stop Telling Reps to Exceed Customers’ Expectations

Most companies, especially startups, have a limited marketing budget. If you start your efforts by trying to exceed customers’ expectations, you will only waste your time and your precious marketing budget on costly giveaways and other incentives.

Without clear guidelines and parameters, reps may go above and beyond what is necessary or feasible, leading to unnecessary expenses and resources. Additionally, customer expectations can vary greatly and may not be realistic or reasonable to meet in certain situations.

Setting specific and realistic expectations can be a more effective approach to ensuring customer satisfaction and avoiding unnecessary expenditures.  

So, it’s high time you stopped telling your customer service reps to exceed customers’ expectations.

Adopt a Low-Customer-Effort Approach

Most customers hate it when they are asked to contact the company repeatedly to get their issues resolved. Nobody wants to repeat information to different reps, only to find out it’s all useless and leading nowhere.

Companies have now identified a new metric, known as Customer Effort Score (CES), that is assigned a rating from 1 to 5, with 5 showing very high effort.

If you want to retain your customers, you have to try to keep this score low.

One way to achieve this is to look at feedback from dissatisfied customers. There are companies that specifically train their reps to call unhappy customers who give them low marks.

This issue-resolution approach is commendable as it not only helps customers feel heard and satisfied but also ensures that the company’s services are continuously improving. It has been observed that if you use this tactic, it can help increase your issue resolution rate by 31%.

Conclusion

When it comes to customer service, businesses often emphasize the importance of exceeding customers’ expectations. However, it’s time to rethink this approach. While providing exceptional service is essential, setting unrealistic expectations can lead to disappointment and frustration for both customers and employees.

The latest research suggests that it’s more important for companies to understand their customers’ needs and expectations, instead of focusing on offering incentives. They should also strive to meet their customers’ expectations consistently in order to build strong and lasting relationships with their client base.

Moreover, constantly pushing for over-the-top service can cause burnout among customer service representatives who may feel the pressure to continuously outdo themselves.