One Underrated Trait That Can Make Organizations Successful
Hint: It's not Innovation or Competitiveness
Its been more than 18 months since I quit my cushy job to become an entrepreneur. For more than 3 years, I have been a loyal and High-Value card member of American Express. Not anymore-At least from a High-Value perspective.
Owing to the pandemic and teething troubles that are generally associated with a new business, I decided to implement austerity measures to reduce my expenses until the business finds its feet.
Well, that was good for my business, but it meant that I could not spend INR 150,000 cumulatively on my card to be eligible for a renewal fee waiver.
I contacted customer care and elaborated on the issue and they were considerate enough to reduce it by 50% keeping in mind the current conditions.
And this wasn’t the first instance of generosity demonstrated by American Express. This was one amongst many.
It’s not that I had used only American Express cards. I had returned other cards to double down on my relationship with American Express. This is going to be a lifelong relationship- I am sure about it.
It is no surprise that American Express also ranks 10th amongst Fortune 100 companies for employees
Credit cards, after all, are like commodity-Same thing, different brand. But what was the most differentiating factor that led to this decision?? Empathy, No Doubt.
If you ask people what drives successful outcomes in business. You might hear multitasking, hard work innovation team building, etc etc. What they miss out Surprisingly- is Empathy
Thinking about ourselves first and trying to be egocentric is an evolutionary survival mechanism.
However, times have changed. With the proliferation of Social Media and online information, consumers are well placed to make informed decisions.
Companies that leverage empathy have seen phenomenal results: Increased Customer Satisfaction, Higher Profits and Revenue, Higher Brand Recall, and Happy Employees.
What is Empathy?
Empathy can be defined as an ability to understand and comprehend another person`s perspective.
To understand empathy you need to place yourself in the shoes of another and try to comprehend their thoughts, feelings, and emotions.
How can companies leverage empathy?
A. Decision Making: Allow your employees more freedom when it comes to decision making
B. Listening Skills: You can only show empathy when you listen and understand others’ perspectives.
C. Encourage Feedback: Allow employees to express themselves and spell out their issues.
Revealing weakness should not be seen as a stigma, rather this helps employees to introspect and also recognize their strengths which they can play on
D. Provide Negative Feedback in a Supportive Way: When you notice employees struggling with work, do not try to pinpoint their faults and weaknesses, rather ask for feedback on what’s stopping them and accordingly, lend a helping hand to enable them to accomplish tasks.
Benefits of Empathy:
#1 — Increased Customer Satisfaction:
Customers nowadays are spoilt for choices. The proliferation of social networks and the internet has made consumers more aware and they are likely to make informed decisions.
Empathy enables companies to understand customers’ viewpoints to understand their needs and sentiments.
This helps to develop a rapport with consumers and potentially make them lifelong clients.
#2 — Higher Revenue:
Empathy should not be necessarily restricted to customer care executives who deal with client complaints or assistance.
The Sales & Marketing team should also imbibe empathy- For all the good reasons.
It does not matter which industry you belong to, empathy can help you to increase sales.
How to show empathy to increase Sales
- Understand the customer`s perspective to figure out their problems or desires. Try your best to personalize the services to the clients to help them feel satisfied.
- Customers at times can be jittery or angry due to delays or expectations not being met. Try to help them calm down to understand what went wrong. Do a Root Cause Analysis to address their concerns
#3 — Increased Productivity and Innovation:
Companies that focus on diversity have led to better outcomes. Diversity can be based on Gender, Nationality, Demographics.
But diversity can lead to productivity and innovation only if all employees understand each other`s culture, mannerisms, or preferences. Lack of empathy might result in differences of opinion and clashes, which restricts innovation.
#4 — Increased Collaboration:
When peers get a clear understanding of each other`s strengths and weaknesses, it helps to develop a strong bond. There are very less chances of squabble, instead, team members choose to uplift each other to ensure overall success.
How to Use Empathy to Increase Collaboration:
A Manager should understand the requirements of each team member and their capabilities to assign tasks. Sometimes, the team members may not be in a good place to work upon. Instead, they should choose to
#5 — Reduced Attrition:
Leaders who understand and respect juniors have proven to be effective. When employees are cared for and understood, they are less likely to resign and leave the organization.
There are certain costs associated with attrition-Like rehiring, spending money and time on training and development-All of these costs can be minimises-If not eliminated- by leveraging empathy.
#6 — Higher Customer Recall:
Companies that exhibit empathy are well placed to gain significant business in the future, Today, consumers look to establish relations with brands, and empathy can help to create a favorable brand recall.
Consumers are more likely to buy a brand with which they resonate. If the consumer is attracted to your brand persona, he will more likely than not end up buying from you. Not just that: They are also likely to recommend you to friends and families, thereby leading to higher sales
How to use empathy to increase customer recall
- Try to create meaningful relationships with customers. Make an outreach to customers, take their feedback, and incorporate the same to provide highly personalized services
These small, yet incremental steps-If diligently applied- can produce wonderful results for your organization.
So, Folks: That was all about Empathy. Please do let me know your thoughts. What else do you think can help your organization succeed?
