Empathy and Emotion: The Missing Ingredients!"#$%&'%()*+!"##$%" #$"&'()*+,'-.*/"0"1()(2.)2"%('/)3'"

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1 Empathy and Emotion: The Missing Ingredients!"#$%&'%()*+!"##$%" #$"&'()*+,'-.*/"0"1()(2.)2"%('/)3'"

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4 50% 60% 70% 80% Very Poor Poor Okay Good Excellent Supermarket Chains Hotels & Rooms Airlines Parcel Delivery Services Auto Dealers Insurance Carriers Utilities TV & Appliances Investment Firms Computer & Tablet Makers Retailers Banks Streaming Media Credit Card Issuers Fast Food Chains 2017 Temkin Experience Ratings 331 firms across 20 industries based on a survey of 10,000 U.S. consumers Wireless Carriers Software Firms Rental Cars & Transport Health Plans TV/Internet net Service Providers

5 Three elements of an experience Degree to which customers can accomplish their goals #4*/,-3'" "5673'.3)83" The difficulty or ease in accomplishing their goals How the interaction makes customers feel Emotion

6 Emotion drives loyalty Emotional CX Rating Upset (1 to 3) Delighted (7) 62% 77% 79% 86% 9:;6" <<:=6" >:=6" 11% 1% 7% 11% 13% ;:96" Forgive company if it makes a mistake Recommend company to others Trust company Purchase more from company Consumers who are likely to do these things Base: 10,000 U.S. consumers

7 Empathy noun em pa thy \ˈem-pəә-thē\ The action of understanding, being aware of, being sensitive to, and vicariously experiencing the feelings, thoughts, and experience of another of either the past or present without having the feelings, thoughts, and experience fully communicated in an objectively explicit manner; also the capacity for this The imaginative projection of a subjective state into an object so that the object appears to be infused with it The ability to understand and share the feelings of another.

8 How did these make you feel? =" <"?"

9 Prof. V.S. Ramachandran of UC San Diego shares scientific findings on the neuroscience of empathy and compassion with the Dalai Lama.

10 Two types of human empathy EMOTIONAL The sensations and feelings people get in response to others emotions; this can include mirroring what that person is feeling. COGNITIVE The ability of a person to consciously take someone else s perspective and adopt another s psychological point of view.

11 Two types of human empathy EMOTIONAL COGNITIVE This mother in Mogadishu lost her daughter Nzinga, because she could not provide her baby with the equivalent of two pieces of bread per week. Source: SOS Children s Villages

12 Two types of human empathy EMOTIONAL COGNITIVE Source: Action Against Hunger

13 Two types of human empathy EMOTIONAL COGNITIVE Based on our efforts, Were saving 4 million kids per year! It s just one-fifth of what it was five years ago.

14 ORGANIZATIONAL EMPATHY

15 Organizational empathy inhibitors 1) Individual Context 2) 3) 4)

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18 Source: SOS Children s Villages

19 Organizational empathy inhibitors 1) Individual Context 2) Human Biases 3) 4)

20 Empathy inhibitors: Human biases

21 Empathy inhibitors: Human biases

22 Empathy inhibitors: Human biases Paradox of Choice

23 Human bias: Default Organ Donor Sign-up Rates Opt-in Opt-out Source: danariely.com/2008/05/05/3-main-lessons-of-psychology/

24 Human bias: Inequity aversion Capuchin monkeys like cucumbers and are happy to trade a rock for some, but they like grapes even more Source: (Frans de Waal)

25 Human bias: Framing effect Combs through call transcripts to find words like can t, won t, and don t that trigger negative customer reactions. The company then trains its representatives to use alternative phrasing!"#$%&'(#)*+"#()*(#,("-#,&#.(%/0#!"'11#)*+"#.(%/0# *+*,1*2,1,(3#4%5#()*(#,("-#,&#(6%#6""0.# Customer Effort Score dropped from 2.8 to 2.2

26 Organizational empathy inhibitors 1) 2) 3) 4) Individual Context Human Biases Group Think

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28 Organizational empathy inhibitors 1) Individual Context 2) Human Biases 3) Group Think 4) Cultural Norms

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30 CULTURAL NORMS

31 Organizational empathy inhibitors 1) Individual Context 2) Human Biases 3) Group Think 4) Cultural Norms

32 TALK ABOUT EMOTIONS Five A s of @)2'F"

33 TALK ABOUT EMOTIONS Consumers are statistics. Customers are people. -Stanley Marcus SEE CUSTOMERS AS INDIVIDUALS

34 TALK ABOUT EMOTIONS FOCUS ON CUSTOMER JOURNEYS SEE CUSTOMERS AS INDIVIDUALS

35 Focus on customer journeys When a USAA member calls in to change an address! Are you going on active duty?! If yes, then! Do you want to put your auto insurance on hold?! Have you executed a power of attorney?! Have you executed a healthcare proxy?! Do you have enough life insurance?

36 Focus on customer journeys CUSTOMER JOURNEY THINKING Ask and answer 5 questions: 1.! Who is the customer? 2.! What is the customer s real goal? 3.! What did the customer do right before? (three times) 4.! What will the customer do right afterwards? (three times) 5.! What will make the customer happy?

37 My coordinates Bruce Temkin, CCXP CX Transformist & Managing Partner Blog: ExperienceMatters.blog (THECXBlog.com)

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