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Customer Empathy Matters v0.13

Measuring Customer Empathy digitally by Harding & Yorke and Fusion Experience

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Customer Empathy Matters v0.13

  1. 1. Customer Empathy matters…
  2. 2. / Customer empathy matters ..... / Customer Experience Practice President Barack Obama explains the ‘empathy deficit’ Click here Generation 1: Customer Satisfaction Asking customers whether or not they are satisfied with your company, products or services received: transactional focus Generation 2: Net Promoter Score Single question on a 0 to 10 rating scale: &quot;How likely is it that you would recommend our company to a friend or colleague?“ . Generation 3: Empathy Rating Index Benchmark measurement for ‘how’ customers feel about a product or service and the reasons behind those feelings. It can be extended to include employees and other stakeholders. “ in someone else’s shoes” Engaging customer experiences are essential to the success of the business. Introducing measures that enable the business to more fully understand how customers interact can be a leading indicator for the value of stakeholder investments. How much is Customer Experience worth? Empathy measures ‘how’ people feel about a product or service, and the reasons behind those feelings. The Empathy Rating Index is the next generation method for measuring customer experience. Research has shown that a 1 point movement on a ten-point scale in the Empathy Rating Index can be correlated to a 16.4% movement in ROCE. The best customer and employee experiences must be seen as dynamic services, where change is fluid and moves in response to shifts in emotional behaviour. Today’s ‘must have’ is formal demand-sensing of the empathy deficit underpinned with evidence for decisive actions and definitive outcomes. Better still is the prediction and visualisation of empathy flows and patterns, using insights to lead to emergent opportunities. <ul><li>Empathy is a lead indicator for: </li></ul><ul><li>Balanced Scorecards </li></ul><ul><li>Change Management </li></ul><ul><li>Channel Optimisation </li></ul><ul><li>Demand led innovation </li></ul><ul><li>Competitive Benchmarking </li></ul><ul><li>Customer Acquisition & Retention </li></ul><ul><li>Digital Design </li></ul><ul><li>Enabling Intangible Measurement </li></ul><ul><li>Mergers & Acquisition </li></ul><ul><li>New Market Strategy </li></ul><ul><li>Project Prioritisation </li></ul><ul><li>Research & Development </li></ul><ul><li>Self-Service Balancing </li></ul><ul><li>Skills and Training </li></ul><ul><li>Workforce Alignment </li></ul>Executive Summary Challenge Opportunities Metric Trends Customer Satisfaction Score Net Promoter Score Empathy Rating Index 1 2 3 Customer Metric Trends
  3. 3. Customer Experience Index 2008: companies in the bottom quartile have revenue losses of $148m. Alexander L Biel & Associates / Customer empathy matters … / Customer Experience Practice George Lakoff ‘Empathy and Sustainability” Click Here “ Customer empathy matters…” Indicators Improving the customer retention rate by as little as 5% can increase profitability by between 30-85%. Harvard Business Review Only 11% of corporates have an excellent customer experience rating and 38% were rated poor or below poor. Forrester Research, 2009 Understanding customer behaviour is the major influence for evolving customer experience investment and returns. Markets Empathy Matters In mature markets, such as retail financial services, the empathy gap is narrowing between their leaders, the followers and the laggards. The leaders are now focusing on customer experience as the competitive differentiator using personalisation, customer decision journeys, optimised touchpoints, visualisation tools, event-driven engagements, avatar advisors, social media and demand led innovation as some of the ways to increase the empathy gap. How does a corporate differentiate products and services in a mature market? Customers are faced with so many good choices that making decisions is often more influenced by the emotional engagement. Corporates are now going beyond traditional customer satisfaction to develop new ways to ensure empathic interaction becomes the competitive differentiator. Change Proactive As customers become more knowledgeable, demanding and informed, the winning differentiator is often the level of empathy over a longer term with its customers and stakeholders. This approach involves understanding and predicting empathy patterns to proactively build more meaningful and sustainable interactions within decreasing time periods. gap gap How do you feel about the ....... … value & values … time … trustworthiness … meeting your needs … choices … respectfulness … structure & processes … knowledge & skills … pro-activity … culture of excellence Market
  4. 4. FusionExperience Video links: