Setting Realistic, Deliverable, and Measurable Expectations - Brokerblogger

If there is one thing that a "broker" or "intermediary" has to do well, it is making sure that buyer and seller expectations are set properly.

If you are on the buying end of a transaction, "Customer Satisfaction equals the Perceived Value the customer receives from the product or service minus the Cost to the customer for that product or service." according to D. Brown Management.  "Perceived" is the keyword, and "Setting Proper Expectations" is key to the evaluation of "Value Received".  The definition of the word "Perceived" says:  "to attain awareness or understanding of". 

So how do you attain "awareness & understanding"? It is done through Open, Honest, Upfront, and Good (O'HUG) Communication combined with empathy for the other party which is imperative in having all go smoothly.  Good communication, by the way, should be clear, conspicuous, comprehensive, and most importantly, completely comprehended!

If you are on the selling end of a transaction, you should get the same kind of good communication from the buyer on payment terms, as well as feedback on perceived value delivered and measured from buyer expectations.  Here is why:

In "Setting Expectations, Maybe The Greatest Business Building Tip Of Them All", Jim Logan says:  "Setting expectations with employees, suppliers, customers, and business partners is critical to building trust and earning respect. Trust and respect leads to a great reputation."  It is my belief that in the past (before the Internet) that many sellers (on-line or off-line) didn't care about "a great reputation" with any one buyer, since they counted on that one buyer not being able to affect their reputation on a wide scale.  The Internet has changed all that, but some sellers and buyers have not gotten the message yet (see the .  Buyers need to realize that they have a reputation, too, and it can be spread all over the Internet in the form of on-line seller responses (explanations of buyer trickery, or to correct unrealistic buyer expectations, etc.) to complaints from buyers. 

The Cluetrain Manifesto (which everyone should read) says:  "Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations."  One of those "qualities missing" is "Setting Realistic, Deliverable, Measurable Expectations".

If setting buyer expectations by sellers is NOT done properly in today's connected, networked world of the Internet, then Andy Beal (as well as Todd Malicoat (aka "Stuntdubl"), Lee Odden and others) have some tips on "On-line Reputation Monitoring & Management".  If setting seller expectations by buyers is NOT done properly, then possible legal ramifications could ensue.