Editorial
The Gist
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Waiting expectations matter. Customers are more frustrated by unexpected delays than by long waits.
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Gaps break loyalty. When reality doesn’t match expectations, customers feel regret, complain or leave, which hurts brand perception and retention.
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Values build trust. Customers want brands that reflect their values. Ethical business practices drive long-term loyalty and positive perception.
There's your version, your customer's experience and the truth. Can you guess which one matters for brand loyalty? Customer experience is the top driver behind why customers either stay or leave.
According to PwC's 2023 “Customer Loyalty Survey,” 37% of customers who left a brand say it's because they had a bad experience with the product or service. Meanwhile, just 26% of executives believe that customer experience is a core driver of customer retention.
That leaves a big disconnect. Customer experience even trumps price. That same PwC study found that far fewer customers abandoned a brand when prices went up (17%) or a competitor offered lower prices (11%).
How deep does the role of customer experience in brand perception go? How do brands take the wheel to shape customer experience in a way that drives retention? It’s important to understand the three laws of customer experience.
Table of Contents
- The Law of the Stuck Clock: Why Customer Expectations Matter More Than Speed
- The Law of the Experience Gap: When Expectations and Reality Clash
- The Law of Good by Association: Customers Want Brands to Reflect Their Values
- A Positive Customer Experience Begins With Matched Expectations
The Law of the Stuck Clock: Why Customer Expectations Matter More Than Speed
If customer attrition is hitting the roof, you’d probably assume your company needs to tighten up customer wait times on service tickets. But it might be simpler than that. Most companies struggling with poor brand perception due to long wait times may simply need to adjust expected wait times.
A 2023 study that looked at customer satisfaction in response to shorter waiting compared to longer-than-expected waiting during service encounters found that time spent waiting wasn't necessarily the defining factor in customer satisfaction. Satisfaction was actually determined by expectation. The study found that longer waiting times were associated with minor decreases in satisfaction.
However, brands aren’t just frustrating customers with longer-than-expected wait times. They’re also missing the chance to impress them by delivering unexpectedly short ones. Research shows that the increase in brand perception that comes from waiting a shorter period than expected substantially increases satisfaction. This pleasant surprise is actually more powerful in creating a brand impression than the opposite experience of being disappointed by a longer waiting time.
Brands should understand that customers are willing to wait longer for service to a certain point. Offering an optimistic wait-time window can backfire for brand perception because underestimating wait-time windows sets brands up to disappoint customers. Meanwhile, brands that overestimate wait-time windows set customers up to have a positive experience.
Related Article: What Causes Customer Rage Today?
The Law of the Experience Gap: When Expectations and Reality Clash
An experience gap happens whenever a customer receives something different from what was expected. According to researchers, experience gaps can put customers on several different trajectories. None of them are good for the business on the receiving end of the scorned or disillusioned customer. According to a well-known review of customer behavioral responses in response to failed services, experience gaps can cause customers to feel regret, disaffection or disappointment. All three can funnel customers into one of four courses of action.
| Customer Response | What It Means | Why It Matters |
|---|---|---|
| Switch | The customer terminates the relationship and either manages a service on their own or pivots to a competitor. | This is the most undesirable response. Once a customer leaves, it’s difficult and costly to win them back. |
| Inertia | The customer stays but may feel disaffected or disengaged, quietly jeopardizing long-term customer loyalty. | Inertia can be a hidden risk. Brands may assume loyalty where there is only indifference or dissatisfaction. |
| Complain | The customer expresses disappointment through formal or informal complaints, placing blame on the provider. | While resource-draining, complaints offer a chance to recover loyalty—if managed quickly and well. |
| W-O-M (Word of Mouth) | The customer vents frustration by sharing their negative experience with peers, online audiences or in reviews. | This is the costliest outcome. Negative reviews weigh heavily on informed buyers, especially at the point of conversion. |
The Law of Good by Association: Customers Want Brands to Reflect Their Values
In the business world, you are the company you keep. Customers increasingly desire to work with brands they feel reflect their own values. In other words, your customers can feel good about themselves when they can feel about you. Ordinarily, corporate ethics falls under the realm of brand experience. However, brands miss opportunities for building customer fidelity by not integrating ethics into the customer experience.
A 2019 study looking at factors that drive customer loyalty among telecom service subscribers identified corporate social responsibility and service quality as two main loyalty drivers. The powerhouse combo of satisfaction and trust resulting from service encouraged customers to be more loyal to their current service providers.
A 2024 analysis on the role of ethical business practices in building consumer trust and long-term brand loyalty found that 68% of consumers prioritize ethical practices when making purchasing decisions. Researchers looking into the trend concluded that ethical behavior increases consumer trust and loyalty to help position a brand for sustained success.
Ethical practices can be used for a competitive advantage to help customers identify a brand as being compatible with their own values. Messaging regarding ethical practices and sustainability goals should be integrated into the customer experience to strengthen brand perception and build trust. For example, let customers know how their choice to work with your company has helped you to reach specific goals or give back. This brings ethics and sustainability out of the realm of brand experience to become a part of customer experience.
Related Article: Using Social Initiatives to Build Trusted Customer Relationships
A Positive Customer Experience Begins With Matched Expectations
The expectation paints the experience. Most customers aren't disappointed with a product or service because it didn't do what was promised. They're disappointed because they misunderstood the promise because it was miscommunicated.
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For brands, the key to rehabilitating customer experience is setting up expectations, meeting expectations and making customers feel good about their choice in the process.
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