Customer Wallets Are Tight: So Is Empathy the Best Strategy

Consumers (and indeed, other types of customers) are therefore being more discerning about how they spend their money – which has led stores and supermarkets to offer significant discounts. Yet, a price war isn’t always the answer for companies that wish to encourage their customers to loosen their wallets and to begin spending again. The problem is that this strategy can lead to diminishing returns and it can be a very risky one for the small retailers in particular. The larger retailers have greater economic power, so they are more likely to win. Furthermore, some customers may actually be prepared to spend more if a company either adds value to a product or service offering; or if that firm manages to do its utmost to solve a problem that a customer is faced with. This issue therefore raises the question about whether adding empathy to customer service is the answer.

Customer Service Differentiation

Customer service, whether it is delivered in-store or through a contact center, is one way that a company can add value and differentiate themselves from their competition. However, Jamie Lywood, managing director of the U.K.-based Compathy, believes that the way customer service staff has been trained in the past represents a problem.

For More: Customer Wallets Are Tight

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