Empathy, one of the characteristics or we might say building blocks of emotional intelligence, is an essential skill of any leader. When lacking empathy employees feel unheard, undervalued and often frustrated about an apparent lack of understanding of the challenges in any job role or for any difficulties they might be experiencing outside of their working lives, and customers less inclined to entrusting loyalty with your enterprise.
Having a developed sense of empathy enables you to sense what is happening and how someone is feeling without them having to actually tell you. In groups a leader is able to use the same sense to feel potential areas of struggle, conflict and "holding back" of information, opinions, thoughts and ideas to maximise on the moment and open discussion. Empathy enables responses that take into consideration non-verbal cues whilst sharing openly without contradicting your own thoughts and feelings. Fostering rapport through being empathetic and showing empathy to others are key characteristics of building effective relationships, which is the very foundation to effective leadership and perhaps even business success.
What is empathy? Empathy is not sympathy it is the ability to experience the moment in response to a customer, colleague, employee, or family member in a manner that “connects” directly to that person, sharing briefly the emotions that the person might be feeling without taking them on yourself. It has an impact on those involved in that moment as well as a longer lasting impact through building a relationship of trust. A positive customer experience makes the difference between a customer becoming loyal or choosing to go elsewhere. In most cases there are plenty of “elsewhere” companies ready to serve customers who have had a poor or even bad experience with any particular service offering. In the current labour market, it is not just the external customer who might choose to go elsewhere, but employees, also.
The 2020 NTT Global Customer Experience Benchmarking Report stated that, “Companies who focus on a customer/employee centricity see a 92% increase in customer loyalty with an 84% uplift in revenue and a 79% margin in costs saved.
More recent data (March 2024 in an article by Cheyenna Eversoll Duggan “The empathy advantage: Using customer data to personalise marketing,” stated:
- 68% of customers expect brands to demonstrate empathy, but only 37% of customers say brands generally demonstrate empathy.
- 68% of customers will spend more money with a brand that understands them and treats them like an individual.
- 66% of customers expect companies to understand their unique needs and expectations, but only 34% of companies generally treat customers as unique individuals.
Empathy is the linchpin to delivering excellence in customer service both for customers and service providers. Equipping leaders through the development of emotional intelligence and the skills of showing empathy is no longer questionable in terms of importance to business performance, or even optional, but essential.
Empathy is an essential aspect of emotional intelligence (Daniel Goldman). Being empathetic and showing empathy has two steps, firstly picking up on others' feelings and secondly responding to those feelings and emotions while interacting with them. Not everyone tells you how they are feeling, even if you ask, but with heightened sensitivity you are able to pick up on emotions and respond if needed, with empathy. Becoming more in tune with the non-verbal and verbal cues that others' are sending increases abilities to respond empathetically. The key competencies within empathy according to Daniel Goleman (Working with Emotional Intelligence) are:
- Sense others' feelings and perspectives
- Take an active interest in others' concerns
- Sense others' development needs and support their development
- Anticipate, recognise and meet customers' needs
- Read emotional undercurrents and power relationships
- Cultivate and build opportunities through different kinds of people.
Judith Orloff once said, “Empathy is the medicine the world needs.” This statement sums up the reason why we need this important skill to foster the growing need for businesses to encourage empathy centricity in their organisation and work culture both internally and externally.
AI is a major part of providing service to customers, often helping filter and channel callers in the right direction to get them the appropriate help speedily, however the ability to sense and understand feelings, concerns and perspectives of others through intuition is not yet something that AI can do, in fact it is the biggest challenge for further development of AI. Palming off your customers to an AI assistant may not build the customer loyalty you are seeking for your business, therefore investing in employee development in this area and equipping leaders with the skill of understanding sensitive situations and responding with empathy are still for now essential to the success of any business.
References
Working with Emotional Intelligence, Daniel Goleman (1999)
The Language of Emotional Intelligence, Jeanne Segal, Ph.D, Jaelline Jaffee, Ph.D
https://services.global.ntt/en-us/insights/2020-global-cx-benchmarking-report#