Empathy, once thought of as a "soft skill" - and one not quite at home in the corporate environment - is gaining greater respect as an integral part of the customer experience.

So say Jamie Lywood and Nickie Hawton, CEO and principal consultant respectively at UK-based Harding and Yorke.

Their research, presented at a breakfast which Actuate hosted recently, provides scientific evidence that the more empathy you show your clients, the greater profits you can expect.

We shouldn't be surprised - although there has, until now, been a dearth of research to prove this theory, it makes sense that there is a link between empathic customer service and bottom-line business delivery.

Hawton explains it thus: "Empathy is a skill that allows you to understand the thoughts and emotions of another person - in other words, to put yourself in their shoes.

"Responding to them from this perspective shows them that you understand and appreciate their needs as a human being."

The converse is also true: react to every person in precisely the manner, mouth tired old platitudes at them, or act without taking the time to hear what they have to say or understand their needs, and you'll make it clear that you're on autopilot, simply motoring through the day and getting through the necessary until you can be on your way home.

Would you enjoy a customer experience like that - one which shows that you're clearly unimportant, and merely one of many? Would you be inspired to return to such a place of business?

On the other hand, an empathic customer experience is one where you're transacting with someone who acknowledges and understands your emotional and practical standpoint, says Hawton, and whose interaction is spontaneous and flexible - in short, responding to you as an individual.

This type of communication has inherent value, as Harding & Yorke's research shows.

They used an Empathy Index to measure the customer's experience of an interaction, and proved that there is a direct correlation between empathy and profitability: simply put, for every point increase on the Index, there is a 16.4 percent increase on profitability (measured as return on capital employed, or ROCE).

"This shows that, when treated with empathy, even neutral or unhappy customers can be transformed into raving fans of the organisation," Hawton says.

It stands to reason: If a customer is already miffed, perhaps because you haven't managed to meet her expectations, her displeasure will only grow if you treat her coldly or, as Hawton puts it, "in an alienating manner".

Of course, few companies are going to compound their customers' dissatisfaction by actively following this path - but even fewer may be aware that simply doing the basics, or treating them in a pleasant manner - is no less harmful.

That's because any other organisation (read: your competitors) will be reacting in the same manner. You only truly start to distinguish yourself when you treat them with loyalty, even if you're exceeding expectations.

"Imagine, for instance, you're offering a two for the price of one deal," says Hawton.

"Yes, you're encouraging loyalty - but only for so long as you continue to offer special deals.

"In contrast, treating customers with empathy creates true and lasting loyalty, because they'll feel understood and appreciated as individuals. Combine this with a drive to exceed expectations, and you have a fan who will stand by you in the long run."

The irony, says Hawton, is that many of their clients already boast staffers with great empathetic skills - and yet these are trained out of them.

Fortunately, this can be avoided by steering clear of the over-familiar approach which many companies believe constitutes personal customer service, and by banning scripted communication with clients.

Avoid these pitfalls, and you'll prove instead that your organisation is staffed by people who are empowered and able to generate smart solutions to problems.

Grace Harding, MD of Actuate, says that the findings of Harding & Yorke's research proves that there is a solid business case for creating a communication strategy which empowers employees with the right tools and skills for interacting with customers.

"This is what we've always believed, but it's incredibly exciting to see proof of the link between profits and communication," she notes.

Grace Harding is co-founder of Actuate, internal marketing specialists.

For more information on Actuate, or to speak to Grace Harding, call 011 217 8860 or visit www.actuate.co.za