Emotional intelligence is a necessary skill to have, both in everyday life and business. When in balance, it allows individuals with a high EQ to maintain their composure in contentious situations and make better decisions. Empathy is a skill that is cultivated when one is emotionally intelligent. To have empathy is to have the ability to understand how someone else feels. It’s as if you can see or experience a situation from someone else’s perspective or shoes. To have empathy or be empathetic is considered a highly emotionally intelligent person, but to have empathy or empathy in business is a form of customer intelligence.
At Credico, we consider “customer intelligence” a part of our customer experience training. Knowing how to regulate emotions like disappointment, frustration, and satisfaction or dissatisfaction in sales is step one of providing an exceptional customer experience. Empathy in business does not make business leaders weak; in fact, it makes your business leadership style one that can sustain any and all customer issues and possible reputational or brand hits.
One of the most invaluable aspects of any business is its brand. Your brand image is equivalent to your reputation; what people say about it can make or break your business. Empathy plays a crucial role in this. Companies that prioritize empathy not only provide consumers with good experiences but also ensure their culture reflects a mindset conducive to understanding the needs of their internal team, starting with management. This focus on empathy shapes a positive brand image, enhancing your reputation and business success.
The Chartered Management Institute conducted a study showing that the lack of empathy in business can be costly. Their report revealed that 82% of new managers in the United Kingdom are “accidental managers,” meaning they take on the role without formal management or leadership training. Empathy in business should begin internally and be sustained externally. It starts at the top and has both internal and external benefits. Unfortunately, only 51% of employees in the United Kingdom believe their senior leaders are empathetic. This is concerning because dissatisfied employees can lead to dissatisfied customers, harming your brand’s image.
When employees feel they are seen, heard, and valued by their empathetic leaders, they will, in turn, ensure your customers feel seen, heard, and valued. Subsequently, this leads to a frontline that is empathetic and mindful of your bottom line. More than that, empathy is a catalyst for innovation. According to a 2014 Nielsen theory, “walking in the consumer’s shoes to uncover key demand-driven insights” helps businesses be innovative and competitive in connecting with and understanding their customers, allowing them to identify unmet needs and market opportunities. This fosters a culture of innovation within the organization, emphasizing empathy as a business strategy and organizational focus.
Despite being two decades old, the Neilsen study still holds true today. Although empathy is not a new concept in business, its significance continues to grow. In recent years, both employees and customers have started perceiving businesses as entities with personalities they can relate to or align with. These “personas” must possess emotional intelligence to nurture their connections in a healthy and balanced manner.
Understanding how your customer is experiencing your brand from your customer’s point of view makes selling easier. When businesses can accept negative feedback about a customer’s experience, not personally but empathetically, your business is taking on a people-focused approach. This approach, driven by empathy, is necessary for long-term business success. It’s not just about the product or service but about the people and their experiences.
At Credico, our focus is on our people – in our relationships with our team, our business partners, and in how we connect with our customers. Empathy comes naturally when businesses consider their customers as partners and their most valuable assets. This empathy leads to better customer experiences, building loyalty, and making your company more sustainable. When your business leads with empathy, it’s not just your sales teams and managers who will follow but also a brighter future for your business.