Just as e-commerce trends change over time, so do customers’ expectations. Meeting them should be a priority of any online business looking to build customer loyalty. Understanding and meeting customer experience expectations is paramount for success in online commerce. This involves identifying what customers expect and implementing effective strategies to manage and exceed those expectations.
This guide will delve into the factors that shape customer expectations, explore the evolving demands of online shoppers, and provide you with six practical strategies to manage and exceed those expectations.
How customer expectations are formed
Customer expectations are not static; they are shaped by various factors and evolve over time. Understanding how these expectations are formed is crucial for businesses to anticipate and meet the ever-changing needs of their customers.
Several key factors influence the formation of customer expectations:
Past experiences: A customer's previous interactions with your brand, whether positive or negative, can influence their expectations for future interactions. Positive experiences set a high bar for future encounters, while negative ones can create a hurdle to overcome.
Word-of-mouth and reviews: What customers hear about your brand from others, including friends, family, and online reviews, can also shape their expectations. Positive word-of-mouth can create anticipation and excitement, while negative reviews can raise concerns or doubts.
Marketing and advertising: The way you present your brand and products through marketing and advertising can influence customer expectations. Overpromising or misrepresenting your offerings can lead to disappointment, while clear and honest communication can set realistic expectations.
Industry standards and competitors: Customers will often compare your business to competitors and industry benchmarks. If competitors offer certain features or services, customers may expect them as standard, even if you haven't explicitly provided them.
By understanding how customer expectations are formed, businesses can proactively manage those expectations and deliver exceptional experiences that foster loyalty and satisfaction.
New customer expectations (based on a DHL survey)
In a DHL survey, only 38% of B2B business owners and 31% of B2C owners said they had been able to fully implement their e-commerce strategy. The main reason? Having to manage customer expectations that are changing considerably.
But what are these expectations that have rocketed so rapidly? The 900 respondents – all decision-makers and in key industries – had very clear ideas.
1. Excellent customer experience (CX) tops the list of expectations
The graph shows key customer-facing considerations for businesses in B2C and B2B sectors. Over 50% of survey respondents in each sector rated customer service as extremely important.
Customers now expect their purchases to be painless – a seamless experience with excellent service. Assuming you offer the same goods for the same price as many competitors, meeting customers’ demands could be the reason they choose your business. Demands that not too long ago may have been inconceivable – next-day or even same-day delivery, real-time tracking, flexible ordering, and simple returns.
Recently, several brands in Ireland and globally have faced backlash1 due to poor customer service experiences. For example, Aer Lingus has been criticised for its long wait times and unhelpful customer service agents. At the same time, Facebook has faced scrutiny for its lack of transparency and responsiveness to user concerns.
On the other hand, companies like An Post and Bord Gáis Energy have been praised for their excellent customer service, demonstrating the positive impact that a customer-centric approach can have on brand perception and loyalty.
2. Flexible and speedy delivery options
44% of both B2B and B2C respondents said time-specific delivery was a key customer expectation – whether within two hours, same day or next day.
Offering multiple delivery options is also very important, though slightly more so for B2C businesses (41%) than B2B businesses (36%). Around 30% in each sector said it was also very important that shipping was free of charge.
3. Hassle-free returns
Offering multiple return channels to customers – for example, to a service point, a locker, or back to a brick-and-mortar store – was rated as important by over one-third of respondents in both B2C (37%) and B2B (39%) sectors.
A hassle-free returns process was also key to meeting customer expectations, with 37% of B2C and 34% of B2B respondents emphasising its importance. This highlights the need for clear and concise return policies, easy-to-follow instructions, and efficient processing of returns.
To delve deeper into creating a comprehensive return policy for your business, check out our dedicated article: How to Write a Small Business Return Policy. This guide provides valuable insights and a free template to help you create a customer-centric return policy that fosters trust and satisfaction.
4. Product availability & technical support
In addition to customer service and time-specific delivery, product availability was reported as one of the most important customer expectations. Over 40% of B2C respondents said it was very important, and just under 40% of B2B respondents. Understandably, technical product support was more important in the B2B sector, with 45% rating it highly compared with 36% in B2C.
Other changes in customer expectations (with examples)
Beyond the main expectations of customer service, delivery, and returns, several other notable shifts include:
Adoption of AI
Customers are increasingly open to the use of AI to enhance their experiences. This includes AI-powered chatbots for instant support, personalised product recommendations based on their preferences, and even AI-driven tools that help them make informed purchasing decisions. For example, many Irish consumers now utilise online banking apps with built-in AI-powered financial management tools2 to track their spending and manage their budgets.
Bots as smart assistants
The use of bots, particularly in customer service, is becoming more prevalent and accepted. Customers appreciate the convenience of getting instant support and answers to their queries through automated chatbots, especially outside of traditional business hours. For instance, many Irish businesses now utilise chatbots on their websites3 to provide 24/7 support and answer frequently asked questions, freeing up human agents to handle more complex issues.
Personalisation
Personalisation has evolved from a "nice-to-have" to a "must-have" for many customers. They expect brands to recognise their individual preferences and tailor their interactions accordingly. This can include personalised product recommendations, targeted marketing messages, and customised offers based on their past behaviour or purchase history. Most consumers, for example, are increasingly receptive to personalised marketing emails4 that offer relevant products or promotions based on their interests and past purchases.
Types of customer expectations
Customers expect many things from an e-commerce business, but most can be broken down into the following categories.
Explicit expectations
Explicit expectations are specific targets customers have when they seek out a product or service – for example, quality, price and/or performance. They are “must-haves.”
Implicit expectations
Implicit expectations are those that customers rarely voice but assume will be met – for example, in e-commerce, implicit expectations might be that the product arrives undamaged, complete, and matches the description on the website. Implicit customer expectations are often the base standard you expect.
Technological expectations
Technological expectations are influenced by how a product category evolves. For example, mobile phones are constantly updated with new features and innovations, so customers’ technological expectations of this category grow too.
Static performance expectations
These relate to the overall performance and quality of your brand. Accessibility, customisation, reliability, punctuality and user experience are just some of the elements influencing customers’ perception of it.
Dynamic performance expectations
These relate to how a product or service is expected to change over time. To exceed dynamic expectations, such as changes in customers’ needs or their business goals, you’ll need to monitor these as they evolve and adapt accordingly.
Digital expectations
These are what customers expect when interacting with your brand online – and they have changed following the pandemic. Customers now expect a mobile-optimised website, product transparency, a personalised user experience, and the ability to purchase on social channels, among other things.
Interpersonal expectations
Interpersonal expectations are what customers expect during person-to-person interactions – for example, with customer services. They expect customer service assistants to be expert, friendly, and courteous. While interpersonal expectations are independent of the product purchased, they are important in building customer loyalty.
Situational expectations
These are influenced by a customer’s experience pre- and post-purchase. Customers may form situational expectations based on imagery they’ve seen or an experience they’ve had. They are the least predictable expectations and the hardest to manage, and can also evolve over time.
How to manage customer expectations: six strategies
Managing customer expectations isn’t easy. Here are top six strategies to help you.
1. Prioritise service
Great customer service can differentiate you from your competitors, even if your products are almost identical, and gives you a real advantage. In the past, companies would cut back on service when they reached a certain size, in order to reduce costs. But now, especially in e-commerce, competition is so high that if you don’t deliver on service, customers will simply go elsewhere.
2. Be where your customers are
With people increasingly shopping on smartphones rather than laptops and desktops, and social media platforms becoming accepted places to buy, you need to ensure your business is in tune with these new customer behaviours. They will expect your site to be mobile-optimised and expect you to have a presence and interact on social channels, so make sure you don’t disappoint.
Understanding your target audience is crucial to tailoring your approach on different channels. For example, if your target audience primarily uses Instagram, you'll need to create engaging visual content and utilise features like Instagram Shopping to facilitate purchases. On the other hand, if your audience is more active on LinkedIn, your content should focus on professional expertise and industry insights.
3. Listen to customer feedback
According to HubSpot’s 2024 State of Service report5, 77% of service teams are using AI, and 79% of service professionals using AI find it helpful.
With many feedback channels available, including surveys, chatbots, social media, email, and customer reviews, businesses have ample opportunities to listen to their customers. Gathering feedback is crucial for understanding and managing customer expectations and identifying any pain points before they escalate.
4. Be honest with them
By being open and honest with your customers, you can earn their trust and loyalty to your brand.
For a start, set realistic expectations. For example, don’t promise next-day delivery unless you can fulfil that expectation. And if issues develop that mean you may not meet your usual high service standards, let your customers know and keep them updated on the situation. Being honest will help keep them on your side.
Alternatively, you can provide customers with DHL Express’ on-demand delivery service to keep them informed and manage their expectations. This option gives customers multiple touchpoints and updates throughout the delivery process.
5. Keep communicating
The after-sales service you offer is extremely important. A simple thank-you to a customer or a discount for their next purchase goes a long way, especially if personalised. Newsletters with relevant offers are another great way to maintain communication – but don’t send too many.
6. Make your logistics a priority
Delivery and returns have become key areas of concern for e-commerce customers. To keep up with their increasing demands, consider partnering with a third-party logistics provider (3PL).
You’ll benefit from their supply chain expertise and flexible distribution network, which means you’ll have a simpler, faster and more cost-effective way of getting your products to customers. This will leave you with more time to focus on other aspects of your e-commerce business.
Discover more about outsourcing your logistics, here.
Future-proofing your business: Meeting tomorrow’s customer expectations
Like e-commerce itself, customer expectations will continue to evolve in the years ahead. As a result, customer service will become a major battleground for e-commerce businesses in both the B2C and B2B sectors. Only those who prioritise and invest in this area will succeed in meeting customer expectations and building loyalty.
Partnering with the experts at DHL Express can help you stay ahead of the game. DHL Express’ commitment to customer satisfaction, combined with its innovative logistics solutions and global network, can empower your business to meet and exceed customer expectations.
Open a DHL Express Business Account to ensure your customers’ expectations are met – every time.
