Benefits of Customer Empathy
Quite simply, the benefits of creating
"Customers that love your company" [pun intended!] are probably
self-evident, that really: it's a no-brainer! However, I have devoted this page to stating the obvious, and
perhaps some of the not-so-obvious!
"The only way"
Quite simply, 'Customer Empathy' (or your own equivalent
term for it) is the only way to reach those visionary aspirations of great Customer
Service and that actually do lead to Customer Loyalty.
Any company actually achieving the Holy Grail of long-term
Customer Loyalty IS practicing Customer Empathy, whether they
call it that or not, because it's just a fancy way of describing that you're making your customers
feel good, and the most powerful way to do that is to make them feel good as
people.
Remarkable, far-reaching benefits of improving
Customer Empathy
The first benefit, of course, that good
Customer Empathy actually delivers is the Holy Grail of Customer Service. This it because it deals DIRECTLY what all Customer Service programs aim to achieve: to make
your customers feel really good, and feel good long term, creating:
Customers that love your
company!
Why is it the Holy
Grail?
Because they are human and we humans
all love to feel welcomed, valued, cared for, understood,
respected, listened to, reassured, etc.
This then
delivers all the well known (and huge) obvious key benefits of good Customer Service itself and we
don't need to go into or justify all those here (Customer Loyalty, Retention, Referrals, Revenue per
Customer, etc., etc.)
Second, there are direct spin-off
benefits to delivering good Customer Empathy that may not be quite so 'obvious', such as:
- Customer interactions will tend to be
shorter. This may be counter-intuitive since people will be more chatty and friendly, but the
quality of the communication is improved so dramatically as a result, that the processing side of the
interaction can be completed far more efficiently (not having to repeat re-explain, recover from
misunderstandings, etc.)
- There will be fewer call-backs, as much more will
achieved in the first call, not least of which will simply be confidence (that all is being taken care
of, for example)
- Less Rework, since fewer mistakes will be made
during the processing, because there's far higher motivation to get the job done
right (first time) for an actual person than for some target. The Customer Service agent will
naturally be taking the extra care and interest that one might naturally take for a
friend, say - colloquially: because they've got their heart in it!
- Simple, yet powerful building of long term Customer
Loyalty - because customers feel and know that you value and care about
them
- Far greater initiative to find on-the-spot
solutions and improved process suggestions
- Natural ownership of issues and tasks, leading to
far less hand-off to other departments or teams
- Cost savings in faster, more direct
processing
- Reduced training investments. At Friends Provident, for example, they reduced the
initial training from two weeks to just two days (covering essential information, such as compliance) and
simply asked their Customer Service agents to treat the customers as "friends" and to deal with them
accordingly (which worked because they already knew how to treat a 'friend' well!)
- Improved ranking in industry standard Service Indexes, and so, much
better reputation (Friends provident went from 10th out of 11 in their industry's key index for
'Service to IFAs' to 3rd place in just a couple of years)
Third, there are the supplementary
benefits to the business, because everyone is happier, such as:
- Lower Staff turnover, staff are much happier when
being given the freedom to be nice to customers in
their own way, not the 'prescribed' way!
- Much improved staff relations, because you can't
get your staff to give to their customers that which you are not giving to them, so there will be more
Empathy within the business
- Much greater enjoyment of being 'at work';
people do actually look forward to coming into a place they previously were indifferent about, or even
hated! All together a better place
to work!
- Also, you will be able to attract the very best
staff in your area when you explain your values towards customers (and
staff!)
- The whole business itself will also evolve too,
improving relationships internally between departments and different management levels, as well as with
external bodies, such as your suppliers
- Natural ownership of issues and tasks, leading to far less hand-off to other
departments or teams
- Far fewer rules, processes and procedures; relying
more on common sense means less overheads and, ironically, better
Quality (without the Control!)
Finally, Success is a great PR
opportunity for your business too; everything from Press Releases to speaking at conferences, or even entering
national award competitions. So much can be achieved with a genuine and determined commitment to the
well-being of your customers and staff.
For example, the tiny 'Pike Place Fish Market' in Seattle
have become world famous because of their unique approach to achieving amazing service, and the top
selling management training video was made from it (The Fish Video) on how they achieve
that.
Also, once we helped First Direct open their eyes in the
late 1990s to recognise the importance of Customer Empathy (they were already seen to be the market
leaders in Customer Service), they changed their entire branding and advertising campaign to promote and
demonstrate how friendly, personable and human they were (such as with fun-filled adverts comparing
their service with that of a friendly barber!)
Finally, on a personal level for you,
becoming an Empathy Advocate and getting serious experience of creating "Customers that Love your
Company" (or whatever you want to call it!) can be a serious boost to your own
job satisfaction, reputation (internally and externally) and career. It offers one of the few remaining
areas for differentiating yourself in an overcrowded, competitive market of, potentially me-too managers
and executives.
Basically, everyone wins with Customer Empathy!
Bringing the human element, humanity, emotions, feelings or whatever
you want to call it (I simply use 'Customer Empathy' as a catch-all term) is surely the future for all
businesses, both internally and externally.
Does it make sense to you? Then let's talk ! There's
already a lot to review on this site, but we will get much more by discussing, and so much
more by giving you some direct feedback on your own company's current Customer
Experience.
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