Thursday, 23rd December 2021 | Management
Here’s why empathy is good for business
There is a greater need for empathy in these uncertain times. Businesses that demonstrate genuine concern for their employees and customers will benefit.
Of the many consequences emerging out of the past couple of years, mental health concerns are one of the most significant. The World Health Organization estimates that 450 million people suffer from mental illness, with 6.7 million of them in Canada. This has an economic cost affecting our healthcare and social support systems (projected to be $79.9 billion in 2021), and a measurable impact on businesses who pay for services through employment-based private health insurance plans. It’s also led to worker preference for companies that have a human-centred approach–a strategic edge during the Great Resignation–and deeper customer loyalty. In this current climate, demonstrating empathy is a marketable skill.
What is empathy?
Empathy is about understanding someone else’s thoughts, feelings, and experiences. For businesses, this means taking the needs and priorities of your workers, partners, and customers into account and demonstrating genuine concern.
How does empathy in the workplace benefit business?
Even before the so-called Great Resignation, there was a strong case for an empathetic workplace. Nobody likes to have their personal concerns ignored. Now, however, we have a situation where people are leaving their jobs in large numbers and some employers are experiencing difficulty attracting and retaining employees. Providing a positive workplace experience can help.
Effective leaders show empathy by establishing a genuine connection with their employees and demonstrating that concern. The idea may be nebulous but the strategies to achieve this are not. According to the Center for Creative Leadership, you can show empathy in your workplace by being compassionate, showing an interest in the lives and goals of your coworkers, offering assistance with personal problems, and watching for signs of burnout. The idea is to make real connections and build trust.
Empathy builds a strong organizational culture
Ideally, your workers should feel a sense of belonging and security at the workplace. An empathic approach helps build a strong organizational culture which, in turn, will help you attract and retain qualified and enthusiastic employees.
Empathy increases engagement
Having enough help is one thing but having engaged help is another. Small business owners rely heavily on their employees in day-to-day operations so they want the most passionate people possible at their side and empathetic leadership is one way to get there. Data from a study by Catalyst shows that “employees with highly empathic senior leaders report[ed] higher levels of creativity (61%) and engagement (76%)...”
Financial benefits
Empathy affects your bottom line in all sorts of ways, from reducing turnover and training costs to increasing overall worker well-being which means less absenteeism and burnout. Financial benefits to the increase in worker creativity are difficult to measure but it’s reasonable to assume a higher level of innovation.
How does empathy for my customers benefit business?
The pandemic led many people to re-evaluate their lives. The Great Resignation is one result of this, but even on a more everyday level there appears to be a trend towards positive, holistic, respectful experiences. An empathetic workplace can be a respite from a day that’s otherwise frightening and stressful and reflect positively on your brand.
Workers are happier
Worker satisfaction is one of these trickle-down ideas, particularly in a retail or customer-facing position. When your employees are happy (when they feel secure at work, are invested, and have trust), they will be able to respond to customers positively.
Customers can count on a positive experience with your company
Every interaction from information gathering to sales to customer communications like emails or social media posts should be based on the principles of empathy. Remember that everyone is dealing with complicated emotions like fear, grief, and uncertainty right now. Prioritize the needs, desires, fears, and goals of your customers to create a lasting positive connection.
Read Also
Customer retention best practices for your small business
In 2023, the business landscape will be more dynamic, with constantly evolving trends and changing customer demands. You can keep your customers engaged and returning for more with the right strategies. Here are some invaluable customer retention best practices to help you stand out from the crowd and keep your customers coming back for more:
Embrace Omnichannel Sales
The pandemic accelerated the shift to online shopping, and customers are now more comfortable than ever buying online. This means providing a seamless experience across all channels, from your website to social media platforms, mobile apps, and online marketplaces. Investing in innovative technologies such as AI and automation can deliver personalized and efficient products that set you apart from the competition.
Use Social Media to Build Relationships
Social media is a powerful tool for building relationships with your customers. You must use social media to build a community around your brand, engage with your customers, and create meaningful relationships. By actively listening to your customers and responding to their queries, feedback, and concerns, you can show that you care and establish trust. Furthermore, social media allows you to showcase your brand's unique personality and values, which can help you stand out from the competition. Sharing customer stories, testimonials, and reviews can also be an effective way to humanize your brand and build social proof.
Leverage Data Analytics
Data analytics can help you understand your customers better and identify opportunities to improve customer retention. You can identify opportunities to improve customer retention and create personalized experiences by tracking customer behaviour, preferences, and feedback. Investing in data analytics tools can help you make data-driven decisions and optimize your marketing and sales strategies to meet your needs.
Be Transparent and Authentic
Customers are increasingly demanding transparency and authenticity from the brands they do business with. Customers are looking for open and honest businesses about their practices, policies, and values. This requires being transparent about pricing, shipping, and returns policies and using authentic and inclusive marketing messages. Doing so can build trust with your customers, which is essential for long-term loyalty. Customers are also more likely to recommend businesses they perceive as transparent and authentic.
Focus on Customer Experience
Customer experience will be a major differentiator for small businesses. As a small business owner, providing exceptional customer experience across all touchpoints should be a top priority. This means investing in customer service training for your staff, optimizing your website for usability, and gathering customer feedback to improve your products and services continuously.
These customer retention best practices can help your small business to stand out from the competition, improve customer loyalty, and grow your business. By embracing omnichannel sales, using social media to build relationships, leveraging data analytics, being transparent and authentic, and focusing on customer experience, you can create a loyal customer base that will continue to do business with you and recommend your brand to others.
Sales ,Marketing ,Management