Who is setting your customers' expectations?

Trendwatching.com's February Trend Briefing highlights the expectation economy which it has defined as:

“An economy inhabited by experienced, well-informed customers…who have a long list of high expectations that they apply to each and every good, service and experience on offer.”

This includes financial services. And while the expectation economy does not include all consumers, evidence that financial institutions are taking notice of this group is evident in everything from the elimination of traditional teller lines at some banks and credit unions to the installation of lobby coffee bars in others.

Perhaps the most interesting point made in the article, and one which I think is often overlooked by financial services executives and marketers, is that expectations are often set outside your industry - in our case, bank customers' and credit union members' expectations are driven, in some part, by experiences outside of financial services. The article cites “Singapore Airlines’ sense of status, Starbucks’ understanding of indulgence and rituals, H&M’s obsession with making up-to-the-minute fashion affordable, or Apple’s prowess in design and usability” as examples of companies that are driving consumer expectations across the country.

Whether it’s industry leaders like these examples, or a local business in your community offering value above and beyond the expected, it's important to realize that your customers’ expectations of you and your institution are not necessarily driven by anything within your direct control. And, that you recognize opportunities where you can bring the customer experience your institution offers more in-line with these expectations.

We are all consumers; and we all have experiences with retailers, restaurants and other businesses that shape our expectations. Rather than relying on peer-to-peer comparisons to drive decisions (the article also goes as far as to say that “just copying competitors is a race to the bottom), financial services executives and marketers can benefit greatly from understanding their customers’ expectations, not only of financial institutions, but as consumers in general.

Depending on your market and your customers, you may find that their expectations are shaped by experiences like the ease of use and instant gratification of a program like Apple’s iTunes; or, they may be influenced by the personalized experience Starbucks offers in customizing their drink order and calling them by name. Whatever the case, financial institutions can play to these shifting expectations; first, by being more aware of them – and by finding relevant ways to incorporate them into the ways they conduct business.