How to Consistently Exceed Customer Expectations | Entrepreneur

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We’ve all heard the phrase, “underpromise and overdeliver.” Unfortunately, I often see businesses that tend to “overpromise and underdeliver,” failing to meet customers’ expectations.

For me, it all comes down to trust. Can I rely on a company to consistently meet and exceed my expectations? As entrepreneurs, this can be a difficult question to confront. However, if you’re unsure how to respond, it may be time to reflect on your practices.

Consistently exceeding expectations earns appreciation from others. What we truly desire is trust. In a landscape filled with wannabes trying to mimic reputable companies, the most effective strategy to differentiate yourself is not only to meet expectations but also to exceed them and then offer a little bit more.

Establish realistic expectations, then overdeliver

Unfortunately, today’s consumers can grow accustomed to disappointment. That’s why companies that set realistic expectations are better positioned to achieve a high level of customer satisfaction. Here’s an example:

While driving to lunch last week, a radio ad for replacement auto windshields caught my attention. Instead of touting how wonderful and fast the installers work or how great the company’s reviews and customer accolades are, the ad used a different strategy; they focused on realistic circumstances.

“We may not always be perfect. Sometimes our employees punch in the wrong number or have trouble locating your address. At other times, we might underestimate how much time an installation will take. No, we’re not perfect, but you can rest assured that we’ll always do our best, make things right when needed and do everything possible to earn and keep your business.”

The ad definitely caught my attention because I appreciated the company’s candor and honesty. In a world where most of us try to tune advertisements out, I’ll consider using the company the next time I need my windshield repaired or replaced.

Why? Because my employees and I at Ditto Transcripts sometimes make mistakes. In the transcription industry, where turnaround time, accuracy and confidentiality are paramount, securing our clients’ trust and confidence remains our top priority. If we fail at any of these objectives, or if our transcripts don’t meet our 99% accuracy guarantee, I’ll do everything possible to correct the situation and satisfy the client as quickly as possible.

The hidden ROI of overdelivery

Most businesses strive to acquire new clients or customers, and on average, B2B companies can spend 20-50% of their annual revenue on this effort. Therefore, turning new clients into repeat customers is crucial for any company’s success.

Given that repeat business is vital to our strategy and profitability, I personally review customer feedback and assess our service levels.

For example, our Google reviews may include statements such as:

“Our transcripts were delivered early and accurately.”
“Their transcriptionist caught every word, even with poor audio quality.”
“You saved us, especially having such a tight deadline.”

I genuinely appreciate it when our clients take the time to share positive feedback, as these reviews typically lead to repeat business. Moreover, when potential clients read favorable reviews, they are more likely to consider us for their transcription needs.

By ensuring our clients are satisfied with our work, we can minimize or eliminate negative reviews. Always remember, taking the necessary steps to enhance customer satisfaction ultimately improves your return on investment (ROI) and bottom line.

What overdelivery looks like

Often, it’s the small gestures that leave a lasting impression. For instance, sending a thank-you email to a new client is usually appreciated. However, a handwritten note can generate an even stronger sense of gratitude. Paying attention to these small details can lead to greater rewards.

Consider what “overdelivery” looks like for your business. In our industry, it might include:

Delivering transcripts ahead of schedule
Proactively communicating with clients when issues arise
Adding speaker labels or formatting without being prompted
Following up with clients after delivery

It’s important to note that “overdelivery” does not mean working for free or providing services at a significant loss. Instead, it involves exceeding client expectations through speed, accuracy, and quality. By focusing on successfully handling the small things, you may be surprised at the positive impact on your bottom line.

Common mistakes that erode trust

We’ve discussed many common mistakes that can erode trust and lead to revenue loss. However, a few of these mistakes are worth repeating.

The first mistake is overcommitting while trying to secure new business. Most entrepreneurs have experienced this situation: Just as we’re nearing the finish line and sensing that our prospect is about to commit, a couple of concerns arise. In an effort to close the deal, we may overpromise without a clear plan for how to meet the customer’s expectations. Does that sound familiar?

Overpromising simply to close a deal often results in underperformance and dissatisfied customers. To avoid this, it’s crucial to set realistic expectations from the start. Make sure to acknowledge the prospect’s concerns and assure them that you’ll develop a strategy to address their needs.

Additionally, maintain open communication with the client to ensure their needs are consistently met. If, for any reason, you find that you cannot meet their expectations, be honest and communicate this as well.

By establishing reasonable expectations, you and your team will have a better chance of overcoming challenges and pleasing the client. For example, saying, “Yes, Ms. Smith, I’m confident we can meet your 36-hour turnaround,” and then delivering the transcript sooner can help build trust and encourage repeat business.

Build a culture of consistent overdelivery

Now that you understand the importance of underpromising and overdelivering, it’s essential to instill this culture within your team. Leadership begins at the top, so ensure your employees comprehend your commitment to this approach. Focus not only on how this strategy benefits the company’s bottom line, but also on how it positively impacts individual employees.

Start by evaluating your hiring practices. Are you looking for employees who take pride in delivering exceptional service? Acknowledge those who go “above and beyond.” Building loyalty and trust within your organization often leads to happier employees and satisfied customers.

Create Standard Operating Procedures (SOPs) to improve quality control and internal communication. Ensure your team is clear about what they can and cannot do when handling customer issues. Proper training can enhance customer satisfaction and foster trust among your employees.

Recognize consistent performance, not only extraordinary actions. While many appreciate acknowledgement for outstanding customer service, it’s crucial not to overlook those team members who consistently deliver excellent service. These are the employees you want to retain and incentivize.

Empower your staff to make small decisions. Your sales team or customer service department typically interacts the most with clients and customers. Allow these employees to make minor concessions or resolve simple issues without needing to consult a manager.

Discuss both positive and negative customer reviews and identify ways to improve in both areas. Owners and managers often focus on negative reviews, especially when they mention specific employees, shifts or departments. While addressing negative feedback is necessary, it’s equally important to recognize those who contributed to positive experiences and discuss how to implement these successful practices throughout your organization.

Trust still — and always — matters

The ability to underpromise and overdeliver is the cornerstone of many successful enterprises. The suggestions and recommendations I’ve outlined are more about common sense than complex strategies. However, every entrepreneur, including myself, needs constant reminders of their importance.

Every time your organization delivers more than it promised, your trust factor increases significantly. Consistently overdelivering helps build a strong culture of trust, both internally and externally.

The late Fred Smith, founder of FedEx, established a solid reputation by promising next-day and two-day package delivery. This positive reputation helped him secure a loyal customer base, even when his company’s rates were higher than those of competitors. More importantly, Mr. Smith built trust through consistent performance.

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