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The Firm’s Empathic Capacity: a Social Neuroscience Perspective for Managing Customer Engagement in the Digital Era

11.1. Introduction: the dilemma of digital transformation in customer relationship management

The rapid development of the digital economy and its technological substrates – very high-speed Internet, Internet of Things, big data and artificial intelligence – poses an additional challenge to firms already operating in a globalized and hypercompetitive market. In particular, it requires the adaptation of procedures for managing customer relationships – ubiquity, ease of access, integrated experience, instantaneous responses – all while maintaining a personalized and authentic discussion with the customer. Faced with these new challenges, the digital transformation of customer relations is gradually becoming an essential strategy. However, it also presents firms with a major dilemma.

On the one hand, digital transformation is based on a method of cost control and relies on automated interactions to improve profitability. Firms can thus transfer to the customer the economic burden of management operations deemed unprofitable: booking an airline ticket or hotel room while automating interaction procedures to reduce the size of the workforce. This “putting the consumer to work” [DUJ 14], combined with the automation of service interactions, significantly reduces costs. In the United States, for example, the cost of contact between a manager and the customer was estimated in 2009 at $7.50 compared to 32 cents for a comparable but automated service [YEL 09]. In addition, the digital transformation of the relationship and the automation of interactions with the customer help to free up sales time for the sales force. In the banking sector, for example, the online management of day-to-day operations by the customer – deposits, transfers, account inquiries – has allowed agents to refocus on the sale of financial products, a source of immediate revenue for the firm.

On the other hand, digital transformation presents all the risks of a strategy that is profitable only in the short term. This is because if the interaction between the firm and the customer is limited to the technical capacity of automated service interactions, it will lead to a rationalization and dehumanization of the relationship that is detrimental to the customer engagement [GOR 11a]. Indeed, dematerialized and digital interactions with the firm are major sources of customer frustration [GOR 11b]. They reduce the opportunities for spontaneous sharing of emotions and force the customer to rationalize their experiences to adapt them to the technical constraints imposed by automated service interactions. For example, chatbots, or conversational robots, are based on language processing algorithms that limit their effectiveness to elementary queries and conversations. On the other hand, managers lose the physical link with the customer – now perceived as a fragment of a transaction process – and compromise their empathic capacity in managing the relationship [GOR 11a]. Finally, excessive digitization degrades the emotional connection – the firm’s ability to establish an emotional connection with its customers – as well as the customer engagement, and affects the firm’s performance. Physical and social relationships in service interactions and the emotional connection established with the customer are, therefore, imperatives that cannot be completely replaced by current technology.

This is the dilemma: digitize and automate customer relations to reduce costs, at the risk of losing the emotional connection and degrading the customer engagement? Or maintain physical interaction to preserve the emotional connection and customer engagement, at the risk of increasing costs and reducing profitability? The solution lies in reconciling its two opposing concepts. Firms accepting the challenge of digital transformation must stimulate the customer engagement while controlling their costs [WEI 18]. In particular, we propose that a strategy based on the development of the firm’s empathic capacity would make it possible to respond to the dilemma posed by digital transformation. First, empathy refers to our ability to understand and share the emotional states of others – the need to interact physically at the touchpoints along the customer journey to establish and maintain the emotional connection. Second, empathy also refers to our ability to understand and share the mental states of others – the need to appropriate the tools of digital transformation to anticipate customer expectations and intentions while controlling costs.

In the remainder of this chapter, we will highlight that the firm’s empathic capacity contributes to shaping a virtuous firm–customer interactivity that creates value for both parties. First, we will emphasize the importance of emotional connection and empathy in the formation and maintenance of social relationships. Then, we will specify the central role of the firm’s empathic capacity in service interactions. It will also provide an opportunity to analyze the cognitive appraisal process developed by the customer to measure the empathic capacity of the emotional firm that underlies the customer engagement.

11.2. What social neuroscience tells us about empathy

Neuroscience concepts and methods are generally applied in marketing to open the customer’s “black box” – their brain – and analyze the cognitive and affective processes at work between a stimulus and a behavioral response. In this sense, the contribution of neuroscience to service interactions lies in its ability to answer the fundamental question why is the customer is engaged? before addressing the more applied question how can we engage the customer?.

According to the approach we adopt, the firm’s empathic capacity is an important mediating and affective process between the sociotechnical devices on which the digital transformation of service interactions is based, on the one hand, and the formation of behaviors and customer engagement, on the other hand. It determines the firm’s ability to maintain an emotional connection while controlling costs in an ever-changing digital environment. It is necessary to define this empathic capacity and to understand to what extent it contributes to shaping a virtuous firm-customer interactivity that creates value for the firms and their customers.

In this section, we adopt a social neuroscience approach to shed light on the concept of empathy. First, we explain what social neuroscience refers to. We then highlight the importance of the principle of emotional connection in social relationships. Finally, we define empathy – an important affective and cognitive process for emotional connection and customer engagement.

11.2.1. Social neuroscience: what is it?

Social neuroscience refers to the exploration of the neurological underpinnings of processes traditionally examined by, but not limited to, social psychology [DEC 06]. In a more paradigmatic approach, social neuroscience refers to an integrative field that examines how nervous (…), endocrine and immune systems are involved in socio-cultural processes. Social neuroscience is not dualistic in its view of humans, yet it is also nonreductionistic and emphasizes the importance of understanding how the brain and body influence social processes as well as how social processes influence the brain and body. In other words, social neuroscience is a comprehensive attempt to understand mechanisms that underlie social behavior by combining biological and social approaches [HAR 07].

Applied to service interactions, social neuroscience helps us to understand how the interaction strategies developed by the firm influence customer engagement through sociobiological processes. In particular, it highlights the central role of emotional processes such as empathy in building firm–customer interactivity. Social neuroscience therefore invites us to situate social, psychological and behavioral phenomena linked and revealed by physiological phenomena at the center of service interactions. It also invites us to pay particular attention to the principle of emotional connection around which the interactivity between the firm and its customer is built – interactions comparable to the social relationships of an individual with their peers.

11.2.2. The emotional connection is essential to any social and commercial relationship

Emotional connection is a necessary principle for the formation of social bonds between individuals. It is not conceptualized as such but refers to different emotional processes that establish and balance social relationships, such as emotional attachment, social experiences of pleasure or pain, and of course, empathy.

11.2.2.1. Emotional attachment

Emotional attachment refers to the psychophysiological process through which a social bond is established between two individuals [CAR 07]. It is based primarily on social commitment, which aims to reduce physical distance and thus facilitate the perception and interpretation of physical signals communicated by others: facial features, facial, vocal and bodily expressions, smells and touch. These physical signals are interpreted as positive social indicators – the opportunity to develop approach behaviors – or negative – the need to develop avoidance behaviors. The physical closeness of individuals – or what can be perceived as such – is therefore important for developing a social bond [CAR 07]. At this stage, neural, autonomic and endocrine processes facilitate or inhibit the perception and interpretation of social indicators and contribute to their integration into the individual’s social experience. For example, dopamine secreted via the neuroendocrine system plays an important role because it is associated with behavioral activation and the search for incentives, which are elements of social bond formation [CAR 07].

In the context of service interactions, the principle of emotional attachment underscores the importance of physical interaction between the firm and the customer to establish an emotional connection and give a positive meaning to the customer engagement. For example, visual or auditory contact is sufficient to reduce social distance and establish an emotional connection. This emotional connection is then the subject of an automatic, unconscious appraisal, which determines the future behavioral predispositions of the customer toward the firm: approach or avoidance predispositions that can be measured by the customer’s loyalty intentions, for example.

11.2.2.2. Experiences of social pleasure and social pain

The social engagement that drives the attachment process generates emotional experiences that the individual experiences as positive – social pleasure – or negative – social pain. Social pleasure arises from the feeling of being connected to the members of a reference group and is expressed through a vocabulary that reflects physical warmth: warm relationships, warms the heart [EIS 16]. For example, receiving affectionate messages from people to whom we are attached increases the feeling of warmth – literally and figuratively – and reinforces the feeling of social and emotional connection [EIS 16]. Conversely, social pain arises from the feeling of being excluded or misunderstood by members of a reference group and is expressed through a vocabulary that reflects physical pain. This vocabulary would not only have a metaphorical function: it would describe a real, physical sensation of pain. Indeed, brain imaging studies show that the experience of social pain is based on neural substrates similar to those used in the experience of physical and emotional pain, as well as those used in empathy processes, especially when observing others experiencing pain [EIS 16].

The social experience that the customer experiences in their interaction with the firm can therefore be pleasant – feelings of being listened to, understood and considered – or painful – feelings of being ignored, misunderstood and isolated. These feelings are not only declared, but they are also embodied, which constitutes a somatic marking of the emotional experience conducive to the development of action readiness [DAM 96]. It all depends on the firm’s ability to establish a positive emotional connection with the customer in order to understand and feel their emotions and then respond to their requests in an empathic way. This empathic capacity, which digital technologies have not yet developed, is an eminently human and emotional process that is essential to the quality of customer engagement.

11.2.3. Empathy: the epicenter of the emotional connection

Empathy refers to our ability to share and understand other people’s affective and mental states [ZAK 16], which are emotions and feelings, on the one hand, and behavioral intentions, beliefs and thoughts, on the other hand. Empathy manifests itself through an utilitarian emotional episode in response to observation but also to the imagination of others’ emotional states [INS 11], and is structured around three distinct but interrelated components [DEC 04]:

  • – sharing affect, which refers to our ability to experience the emotions of others;
  • – understanding emotions, which refers to our ability to identify the nature of emotions experienced by others;
  • – self-regulation, which refers to our ability not to confuse our emotions with those experienced by others.

Empathy is what allows us to live in society. It explains our propensity to constantly infer and anticipate other people’s affective and mental states in order to connect with each other [ZAK 16]. Eventually, it allows us to develop prosocial behaviors such as compassion, assistance and altruism.

11.2.3.1. Empathy is about sharing and understanding the emotional states of others

Our ability to share and understand the emotional states of others is based on the principle of “neural resonance”. Neural resonance refers to the ability of an observer to unconsciously activate the same neural networks as those activated by the observed person who is experiencing an emotion [INS 11]. In other words, to share the emotional experiences of others, we simulate their emotional states by activating our own neural networks of emotion [DEC 03]. For example, observing expressions of disgust in others activates similar neural responses in the anterior insula and anterior cingulate cortex in the observer [WIC 03]. These cerebral areas are particularly solicited in the representation of our own emotional states and those of others [INS 04]. For example, the anterior insula is activated when individuals experience pain and when they observe someone experiencing pain [INS 11] (Figure 11.1).

image

Figure 11.1. Illustration of neural resonance. This functional brain imaging identifies the overlap of brain activations in the anterior insula and anterior cingulate cortex when we receive painful stimulation (green) or when we experience empathy for another person receiving painful stimulation (red) (adapted from [DEV 06]). For a color version of this figure, see www.iste.co.uk/ngoala/augmented.zip

The principle of neural resonance applies to the brain networks involved in the emotional experience but also to those involved in the execution of motor movements associated with an emotional experience. For example, the observation of facial, vocal or bodily expressions involves the brain networks involved in the perception and experience of emotions as well as in their communication [DEC 09]. More broadly, motor, cognitive and linguistic representations of the affective states of an observed individual evoke similar activation patterns at the cerebral, visceral, sensorimotor and physiological levels in the observer to share the same experience [ZAK 16].

Finally, the neural resonance mechanism plays an important role in the development of the empathic response, not only in the sharing and understanding of the emotional states of others, but also in the sharing and understanding of their mental states.

11.2.3.2. Empathy is about sharing and understanding the mental states of others

Our ability to share and understand the mental states of others is based on the principle of “mentalization”, also known as “theory of mind”. Mentalization refers to our ability to reason explicitly about the mental states of others and to develop coherent scenarios to understand how a given situation may have produced these mental states [ZAK 16]. In other words, when we mentalize, we combine our intuitions with the signals emitted by others (e.g. facial expressions) to infer their thoughts, beliefs and behavioral intentions in a particular context.

Mentalization involves certain areas of the brain – the prefrontal cortex, anterior cingulate, lateral temporal lobe, lateral parietal lobe, lower parietal lobe and temporal–parietal junction – that are linked to psychological processes such as information processing, inferences about the false beliefs of others, autobiographical memory, projection into the future and mental navigation [ZAK 16]. These cerebral processes thus facilitate the projection of the individual beyond a spatiotemporal space reduced to the “here and now” to help the individual imagine and anticipate the mental states of others in different times and places.

Our ability to mentalize and infer mental states is, therefore, necessary to develop balanced interactions with others in a social context, whether they are cooperative or competitive [ZAK 16]. It is based on both the process of sharing experience (neural resonance, behavioral mimicry) and the process of adopting the points of view of others. The role of these two processes in determining the accuracy of inferences made with respect to others depends on contextual factors, such as the similarity between the individual observed and the observer.

11.2.3.3. Empathy is orienting toward feeling compassion and developing prosocial behaviors

Empathy is essential for our social and moral development. It is a motivational process that allows us to integrate the emotional and mental states of others in order to experience compassion and thus develop prosocial behaviors [DEC 09].

Prosocial behaviors refer to any form of response or action – sharing, helping, comforting, supporting – that a society considers beneficial to others [PEN 09]. They can be altruistic or selfish in nature. Altruistic prosocial behaviors are the result of an empathic response driven by feelings of compassion for others and an aim to improve the well-being of others. Conversely, selfish prosocial behaviors are the consequence of an empathic response driven by a sense of personal distress and are intended to avoid feelings of guilt and sadness [PEN 09].

Several variables can alter the empathic response. For example, the degree of physical, cultural or social similarity and the emotional ties established with the person being observed influence the empathic response. The closer we feel to others, the more likely we are to respond in an empathic way. The reputation of the person observed can also influence our empathic ability. We feel empathy for someone who is in pain if they have behaved fairly before. On the contrary, we do not feel empathy for someone who behaves unfairly. The observation of this person even evokes brain responses associated with reward networks [INS 06]. Finally, the observer’s level of expertise influences their empathic ability. For example, physicians exposed to painful experiences such as injecting a patient with a syringe react less empathically and use their emotional regulating ability more than laypeople [INS 11].

11.3. Developing firms’ empathic capacity: a two-level strategy

Developing firms’ empathic capacity increases customer engagement and firm performance [GOR 11a]. In the digital age, firms’ empathic capacity must be based on both automated and personalized processes. This is what we introduce in this section: an empathic service interaction strategy with two distinct but interdependent components: the ability to share the customer’s internal states and the ability to understand them.

11.3.1. Sharing the customer’s emotional states

Sharing the customer’s emotional states is the first dimension that characterizes empathy. It is based on rapid, automatic and unconscious cognitive processes that require physical and human interaction. Put in a strategic context, the firm’s ability to share the customer’s emotional states requires defining an empathic value chain, identifying empathic points on the customer journey and training managers to help them develop an empathic interaction with customers.

11.3.1.1. Defining an empathic value chain and identifying empathic points

Engaging customers requires ensuring the ease with which the firm provides access to its services, the relevance of the solutions it offers to the customer in relation to their needs and desires, and the pleasure that the customer derives from their experience with the firm. This need extends to all levels of interaction from the purchasing act to post-purchase activities such as delivery, installation, training, maintenance, warranty and replenishment [GOR 11a].

It is therefore necessary to establish an empathic value chain to identify the customer’s touchpoint necessary to solve their problems and to ensure that each link in the chain adds value to the customer experience. Then, the analysis of the empathic value chain must lead to the identification of empathic points, those highly emotional touchpoints along the customer journey that require a physical interaction structured around the principle of emotional connection. This empathic analysis of the value chain has several major advantages.

First, from an operational perspective, the identification of empathic points makes it possible to deploy front-line employees for touchpoints that have value for the customer. This makes it easier to establish an emotional connection with the customer and to respond empathically to their expectations. Then, from a strategic perspective, the identification of empathic points is conducive to the organization of a field monitoring the customer’s emotions and experiences, and then to the dissemination of this information throughout the firm for the continuous improvement of customer engagement [GOR 11b].

If we reason by opposition, the identification of empathic points makes it possible to identify touchpoints that do not merit a particular emotional connection with the customer. Digital transformation then offers automated interaction options that are appreciated by the customer because they meet their simple and immediate needs. In addition, the automatic management of certain customer touchpoints helps to protect front-line employees from “empathic fatigue”. Feeling empathy at any time and in any place is particularly challenging and can lead to emotional contagion and emotional distress, which would be completely counterproductive.

11.3.1.2. Training managers in empathic capacity

The identification of empathic points in the service interaction value chain makes it possible to identify touchpoints where emotional connection creates value for the customer and the firm, and creates the possibility of deploying front-line employees at strategic points in the customer journey. For this strategy to achieve the prescribed objectives, it must be based on the training of human service managers in order to develop their empathic capacity – empathic skills and intelligence.

As human beings, we have the ability to react empathically by observing the emotional experience of others, but also by imagining it through real or fictional stories that we share on the Internet and through the media, literature and the arts. This unique human capacity could form the basis of training dedicated to developing the empathic capacity of human service managers [GOR 11b]. Listening empathically to customers, correctly identifying the emotional signals they give, being able to adopt the customers’ point of view without confusing the self with others in order to prevent any risk of contagion and emotional distress are all empathic skills that could be taught to managers through the narrative of customers’ experiences shared on empathic points [GOR 11a].

In addition, empathy training based on customers’ experience stories should allow managers to clearly distinguish empathy from sympathy [INS 11]. This nuance, which may seem tenuous, makes it possible, in practice, to guarantee the development of genuine empathic and prosocial behaviors. For example, a manager who is empathic and shares the anger expressed by their customer will likely adopt altruistic behavior to generate calm and will respond constructively to that anger; the manager comes down to the customer’s level. On the other hand, if they show sympathy, it means that they are not affected themselves – in the empathic sense of the word – by the anger expressed by their customer, but that they feel pity instead; they feel they are above the customer’s emotional states. Sympathy is a passive feeling, not very inclined to the manifestation of prosocial behaviors and can be interpreted as a condescending attitude in certain situations.

11.3.2. Understanding the customer’s mental states

Understanding the customer’s mental state is the second dimension of empathy. It is based on time-consuming and energy-intensive cognitive processes that could be supported by automated processing systems. From an operational point of view, first of all, the firm’s ability to understand the customer’s mental state implies appropriating digital transformation tools to artificially increase the managers’ mental capacity. From a strategic point of view, it involves developing “empathic” processing algorithms to identify the customer’s emotional motivators placed in the context of his or her consumption.

11.3.2.1. Increasing the “mentalizing” capacity of managers using digital transformation tools

The fact that managers are deployed for empathic points to establish an emotional connection with the customer does not mean that service interaction cannot take advantage of the standardized and automated solutions available. On the contrary, the use of digital technologies in physical customer interactions could increase managers’ empathic capacities by assisting them in their mentalization process, and therefore helping them in the development of prosocial and altruistic solutions oriented toward the customer’s interests.

One of the significant differences between sharing and understanding the customer’s emotional and mental states is the level of behavioral automaticity. The sharing of emotional states can be triggered very quickly and outside the threshold of consciousness. Conversely, understanding mental states requires explicit and sustained cognitive development that can be disrupted by a lack of time and attention constraints in a customer relationship management department. Moreover, this mentalization process requires a form of anchoring and that one adjusts the inferences developed with others to be effective [ZAK 16]. Among the digital transformation tools, it is artificial intelligence that could assist managers in this mentalization process, which is costly in terms of cognitive resources, and thus facilitates the development of their empathic capacity when in contact with the firm.

Artificial intelligence offers an unparalleled opportunity to “drill data wells” to identify the origin and nature of the customer’s needs to situate them in a specific context and thus better anticipate the customer’s intentions and behaviors [NEW 18]. The use of this information in an empathic capacity approach would have at least two operational advantages. First, it would assist managers in accurately understanding the customer’s mental state, thereby reducing the risk of empathic fatigue during their multiple interactions. Second, the use of this information would facilitate the identification of solutions adapted to the customer’s needs that are sometimes difficult to verbalize.

11.3.2.2. Identifying the customer’s emotional motivators using big data

The development of the firm’s empathic capacity is not only oriented toward operational, reactive customer interactions. It also contributes to a firm’s strategic planning and forward-thinking. In addition to optimizing the emotional connection with front office customers, it promotes the development of a genuine empathic marketing policy in the back office. To achieve this, the firm must take ownership of the use of big data and analyze the available data in an empathic way [AGA 12].

Big data plays a particularly important role in the development of a strategic and prospective approach to empathy. They identify the customer’s emotional motivators – the intrinsic, implicit and emotional goals that guide customer behaviors in his or her interaction with the firm – based on what they do, rather than what they say. Indeed, customers are not always fully aware of the real reasons for their consumption, which makes reporting data unreliable. On the other hand, behavioral data are more objective and offer the opportunity to continuously determine the motivational drivers of customer consumption – data being digitized and stored in real time, including through the use of smartphones and social networks.

Below are some examples of emotional motivators according to [MAG 15]:

  • – standing out from the crowd;
  • – feeling free;
  • – feeling connected to the reference group;
  • – succeeding in life.

Identifying the customer’s emotional motivators using big data is a central step in the strategic development of empathy. It refers to the firm’s ability to establish the emotional connection by aligning its brand with the customer’s motivations, thus helping it to achieve its far-reaching and unconscious goals. In concrete terms, the strategic development of empathy based on the customer’s emotional motivators follows a four-step procedure [MAG 15]:

  1. 1) identify the customer’s emotional motivators by analyzing big data;
  2. 2) determine the purchasing behaviors to which the previously identified emotional motivators are attached;
  3. 3) quantify the potential value of the customer’s emotional motivators and develop a strategy to leverage them;
  4. 4) predict the effect of emotional motivators on standard measures of customer experience such as satisfaction and loyalty.

This forward-looking strategy of empathy helps to shape a virtuous interactivity that creates value for the firm and the customer. It allows the customer to be satisfied and emotionally connected to the firm by facilitating the achievement of intrinsic and implicit objectives. Finally, it promotes the formation of emotional episodes at the various key points of the purchase-emotional episode journey that constitutes the main antecedent of the customer engagement and appraisal.

11.3.3. How does the customer appraise their engagement with the firm?

Customer engagement is a major output of service interactions – especially when the firm aims to place the customer at the center of its marketing strategy. Establishing an empathic value chain and connecting emotionally with the customer to each empathic point is, therefore, essential to preserve customer engagement in the age of digital transformation [WEI 18]. Indeed, the customer appraises their experience at each of these empathic points according to an automatic and unconscious cognitive process. The result of this cognitive assessment process defines the basis on which the emotions that constitute the main antecedent to the formation of the customer engagement are formed.

The theory of cognitive and dynamic appraisal of emotion [SCH 09] provides a good understanding of how the customer’s cognitive, emotional and behavioral responses are integrated into the formation of their engagement with the firm [LAJ 13]. According to this theory, the elicitation of the emotion experienced by the customer is based on the subjective, continuous and recursive appraisal of the interactions he or she has with the firm in relation to his or her goals. This essentially automatic and subconscious appraisal process is based on three main criteria specific to the customer engagement [MAN 12]: accessibility (do I get in touch with the firm easily?), pleasure (are my interactions with the firm pleasant?) and relevance (does the firm meet my needs?). The result of this cognitive appraisal process is the formation of an emotional episode that manifests itself in physiological (e.g. skin conductance response related to the level of emotional connection), expressive (e.g. facial expressions of approval) and subjective (e.g. a stated feeling of satisfaction) reactions that result in the customer’s behavioral predispositions (e.g. word of mouth, loyalty), ultimately affecting the strength of the engagement.

This theory of emotion, therefore, emphasizes three distinct but inseparable appraisal constructs: cognitive appraisal, emotion and behavior. They indicate that the customer engagement is not only thought about but also felt; embodied. Indeed, work in neuroscience has shown that the relationship between the cognitive appraisal process and emotion is characterized by a dynamic cerebral process that simultaneously addresses both emotional and evaluative functions [LEW 05]. In other words, the customer’s cognitive appraisal of their experience with the firm and the resulting emotions are embodied and experienced in a unified way – the distinction between appraisal and emotion being impossible to consciously establish by the customer [BAR 07]. Customer engagement is, therefore, a highly emotional issue. In addition, the fact that the emotional episodes experienced by the customer are guided by the subjective process of individual cognitive appraisal implies that there is a potentially infinite number of emotions associated with customer engagement [SCH 09].

11.4. Conclusion

In this chapter, we have highlighted the dilemma facing firms tempted by digital transformation: automating and standardizing service interactions at the expense of emotional connection and customer engagement, maintaining physical and emotional interaction with the customer at the expense of costs and profitability.

To answer this dilemma, we proposed to consider the concept of empathy, first in its neuroscientific and social dimension, then in its strategic and managerial dimension: the firm’s empathic capacity. In particular, we have identified the two key dimensions of empathy: the ability to share and to understand the internal states of others, and how these two dimensions allow us to develop prosocial and altruistic behaviors.

From a managerial perspective – and in the context of digital transformation – the ability to share the emotional states of others refers to the need to maintain physical interaction with the customer and thus establish an emotional connection. In order to ensure that this emotional connection is deployed in a way that creates value for the firm and the customer, we proposed to define a genuine empathic value chain for service interactions and to identify the empathic points on the customer journey. The next step is to train front-line employees to develop their empathic intelligence in order to respond effectively and altruistically to the customer’s requests. In addition, and with the objective of assisting managers in their empathic interactions with customers, we advocated for an “empathic” use of big data to increase the “mentalizing” capacity of front-line employees – their ability to understand customers’ mental states, intentions and behavioral tendencies. Second, we stressed that our ability to understand the mental states of others refers to the need to develop a proactive and strategic empathic capacity. In particular, we highlighted the concept of “emotional motivators”, which define the far-reaching and unconscious objectives that customers pursue during consumption. The identification of these emotional motivators would notably make it possible to align the firm’s relational actions with the motivations of customers and thus take the principle of emotional connection further throughout the customer journey, before any complaints and requests are made. Finally, we described how customer engagement emerges following emotional episodes structured around three criteria for the cognitive appraisal of service interactions: accessibility/ease of access to the firm, the pleasure experienced during interactions with the firm and the relevance of the interaction to the needs experienced.

This is, therefore, the challenge that firms will have to face in the near future: to appropriate digital transformation and direct it toward empathic service interactions in order to preserve customer engagement and promote value creation for both parties.

Chapter written by Mathieu LAJANTE.

11.5. References

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