Your Business Will Suffer If…
Your business will suffer if you fail to meet customer’s expectations. You can do things right but still get poor reviews if results & expectations don’t match.
Google is a perfect example of what can happen when you fail to meet expectations.
USA Today posted the story on July 16, 2013 titled “Google earnings clipped in mobile headwinds” which talked about Google’s second-quarter earnings report.
The report showed a net income of $3.23 billion versus $2.79 billion in the same quarter last year and revenue for the quarter rose to $14.1 billion which was a 19% increase over last year.
Unfortunately for Google, these numbers fell short of analysts expectations so their stock dropped 5% in after-hours trading.
This is just one very big example of how a company can do everything right and still lose because they fail to meet the expectations that were set for their customers.
It always amazes me that a company can increase their profits but still see a drop in their stock value because they don’t meet the expectations set by Wall Street.
You may or may not be playing on the same level as Google but your business could also suffer if your customer has unrealistic expectations as they relate to the products or services that you deliver to them.
Communication is the key to managing expectations.
Analysts rely on company data to predict future earnings. If a company issues a warning that the market is weaker than expected, there may be an initial downturn in their stock but it is usually less than the drop received when the final report is a surprise.
When YOU communicate with your customers and set realistic expectations, you’ll have happier customers that will be more inclined to refer your business to their friends.
Leave a comment below and let me know whether you agree with my assessment on expectations and their potential effect on your business.
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