How to meet Consumer Expectations?
Posted on Fri, Sep 30, 2011 @ 10:02 AM
By Bill McCarthy
How to meet Consumer Expectations? Build Loyalty by keeping credible promises. It seems simple enough; Offer products and/or services that build customer loyalty by knowing what your consumer expectations are and then delivering on that expectation. Any other premise seems totally counterproductive to a successful company's corporate goals and long term viability, and in some industries, downright nuts. So why do companies wander off the path to success? And what steps do companies take to get back on track?
Explosive growth can be dangerous: Automaker Toyota built its reputation on reliability. Growth in the 1980's and 1990's resulted in expansion and diversification of its customer base, with consumer expectations growing apace with the company's new customer base. Toyota's explosive growth also exceeded available management skills in certain countries and the resulting disconnect with customer expectations resulted in a dramatic downward shift in consumer confidence in the brand. The company's quest for industry market share produced a "growth at any cost" mentality that ended up costing them market share by necessitating an expensive damage control campaign to win back previously loyal customers. The lesson, bigger is usually better, but quality almost always wins over quantity.
What is true on an interpersonal level is true at the corporate level; reputations are easily tarnished, and once tarnished, are very difficult to regain. But it is possible if the company re-commits to meeting or exceeding consumer expectation. In the case of Toyota; rather than try to deny safety and image problems, the company took the high road by admitting its errors and returning to the business model that made them so successful. Just listen to your customer, give them what they want and how they want it.
