3 Keys to Increasing profitability: Using Empathy With Customers
May 14th, 2010Service quality is a key component in competitive differentiation and customer loyalty. Business clients are looking for a positive experience in addition to a quality product. Research over the past 15 years has repeatedly demonstrated that service quality improvements directly improve profitability (Rust, Zahorik, & Keiningham, 1995; Parasuraman, & Zeithaml, 2002). A cornerstone of service quality is empathy. Empathy involves the skill of perspective taking.
3 Keys to Increasing Profitability: Look at the situation from the customer’s perspective
1. Access – ease of contact. Is it easy for the customer to get through on the phone? Is it easy for the customer to meet with you on his schedule?
2. Communication – humility in interactions. Do you use language the customer understands? Do you look for opportunities to be of service to the customer?
3. Understanding the customer – knowing the customers and their needs. Do you remember the customer from one time until the next? Do you make an effort to find out the customers’ stories? Do you make recommendations custom tailored to the customer’s needs?
In this competitive environment, people and organizations need to focus on improving service quality using skills such as empathy to develop deeper relationships to retain customers and increase profitability.
References:
Parasuraman, A., & Zithaml, V. (2002). Understanding and Improving Service Quality: A Literature Review and Research Agenda. Handbook of Marketing. SAGE Publications. Newbury Park, CA.
Rust, R., Zahorik, A., & Keiningham, T. (1995). Return on quality (ROQ): Making service quality financially accountable. Journal of Marketing. 59 (4), 58-70.
