The Relationship Between Customer Expectation and Customer Satisfaction: Set the Expectation, Control the Satisfaction

Creating a satisfied customer goes beyond simply offering the best product, service, or price. In fact, satisfaction is often more closely tied to the customer’s expectations than to the actual product or service.

An Example from the Hotel Industry

Throughout my career, I've traveled extensively, staying in everything from budget-friendly options like Holiday Inn Express to some of the most luxurious hotels in the world. What I’ve discovered is that customer satisfaction is largely influenced by the expectations they bring to each experience.

When I book a room at a Holiday Inn Express, my expectations are modest but self-determined. I’m looking for something clean, economical, and conveniently located—not lavish amenities or five-star service. On the other hand, when I stay at a luxury hotel, I carefully research everything from room size and restaurant quality to the overall grandeur and prestige of the property. In both cases, my expectations guide how I evaluate my stay.

The Power of Meeting Expectations

Interestingly, even though these two types of hotels provide very different experiences, both can achieve high ratings in customer reviews. Why? Because they meet or exceed the expectations of their respective customers.

Consider this scenario: I find a great deal at a luxury hotel. Even though I pay a discounted rate, my expectations remain fixed on the luxury experience, not the lower price. I still expect the same high level of service, attention to detail, and comfort. If the hotel fails to meet those expectations, I leave dissatisfied, even if the room was a steal. Conversely, if I stay at a budget hotel and the service or amenities exceed my expectations, my satisfaction can far outweigh the price I paid.

The Takeaway: Satisfaction Is About Expectation

What this demonstrates is that customer satisfaction is more closely tied to expectations than to the performance of the product or service itself. By appropriately setting a customer's expectation, you can effectively control their satisfaction.

The Balancing Act in Sales

It's tempting to think that lowering customer expectations guarantees satisfaction. However, it’s very difficult to sell a product or service by encouraging low expectations. Sales professionals know that raising expectations—just enough—is necessary to close the deal. The trick is to build customer expectations to a level above your competition, creating enough enthusiasm to make the sale without distorting reality and risking disappointment.

Managing Expectations for Long-Term Success

It’s a balancing act. Set expectations too low, and you won’t make the sale. Set them too high, and you’ll risk falling short, leading to a dissatisfied customer who may not return. The key to long-term success in customer relationships is managing those expectations carefully. By doing so, you not only increase the likelihood of satisfaction but also foster future sales and loyalty.

In the end, customer satisfaction is a product of expectation management. To control satisfaction, you must first set the right expectations.

Greg Driskell