The days of long production runs and a stable customer base are over. Customers are demanding customized products in small quantities. These products must be delivered on-time, with better quality, and at a lower cost than previous product offerings. Foreign competition is providing customers with higher quality products at a lower cost than many local organizations, thus raising the standards in product quality, delivery, and price. As high quality products become the standard, customer service emerges as the primary differentiator among competitors.
Customers expect a higher degree of service each time a purchase is made.
Services that were once considered extras are now taken for granted. As customer service becomes high, new product innovation will become the differentiator. Customers are now expecting new product offerings on a frequent basis. New products must perform significantly better than their predecessors. The trend of ever increasing customer expectations is expected to continue.