Archive for ‘Customer Service Psychology Research’

June 3, 2011

I’m Happy, You’re Happy. Yet More Evidence that Satisfied Employees Make Satisfied, and Loyal, Customers

We have known for a long time now that there is a link between how happy an organisation’s workers are and how happy its customers are.  New findings published in the May 2011 edition of the Journal of Service Research demonstrate yet again that, when studied empirically, the links between employee satisfaction and customer satisfaction are undeniable (1).

This study led by Heiner Evanschitzky from AstonUniversity reveals further that when employees are more satisfied in their roles, the link between customer satisfaction and intention to buy from the company again in the future is stronger.  Satisfied employees mean that satisfied customers report more likelihood to purchase in the future.

In this study, Evanschitzky and his co-researchers examined satisfaction levels at 50 franchised retail outlets and so the employees in the study directly interacted with the customers.  It probably seems intuitively correct that as a customer, if you are served by someone who is happy in their job, then you may come away feeling more positive about the organisation. A process of social contagion could explain at least some of the customers’ satisfaction: they might have been picking up and adopting some of the emotions of the employees during their interactions with them.  In addition, engaged and satisfied employees may care more about providing a good service, and work harder to do so, leading directly to a better customer experience.

However, the effect of employee satisfaction seems to go deeper than this,

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March 29, 2011

Dealing with Complaints: Is it Really Worth Saying Sorry?

In light of the new drive by Lloyds Bank to reduce levels of customer complaints, ( currently running at about 2000 per day, new research on apologising makes thought-provoking reading.

Psychologists report that people who have a complaint believe that an apology will help but, when they actually get one, it doesn’t seem to live up to expectations.

David De Cremer and Chris Reinders Folmer compared how people felt when they simply imagined that they had received an apology, to how people felt who really did receive one. 

They found that an imagined apology was valued more than a real apology, suggesting that the thousands of people complaining to the banking industry every day are probably expecting an apology to help the situation more than it actually will. 

So the question for all customer service providers is: is it worth apologising at all when simply uttering the words to someone who deserves one will run the risk of disappointing them further?  Perhaps customer complaints handlers should simply not apologise.

Well, of course they should.  We all know how infuriating it is when the instigator of our frustration or annoyance refuses to take responsibility for causing inconvenience or distress.  Saying sorry is, or should be, a clear indicator of acceptance of responsibility for both the situation and for the effect on the other person.

However, to complicate matters for complaints handlers, the apology needs to be perceived as sincere.  Anything that sounds like it is simply a scripted, standardised apology with no depth or genuine appreciation of the “hurt” caused is not going to improve a customer’s impressions at all. 

Professor Michael McCullough of the University of Miami and author of “Beyond Revenge: The Evolution of the Forgiveness Instinct”, argues that a genuine apology works because it encourages empathy in the recipient which increases the recipient’s ability to forgive.

Of course, in a formal complaint handling department such as the 200-strong dedicated unit that Lloyds has just set up to handle their 2000 complaints a day*, the person giving the apology is unlikely to be the actual person, or body, responsible for creating the problem.  However, the response to someone understanding your distress, acknowledging responsibility and committing to helping sort it out may well transfer to the wider organization through a variety of typical cognitive processes.  In a corporate setting this humanizes and connects the corporate service provider with the customer through the emotional connection between the two people involved in the apology.

* For information, Lloyds doesn’t compare badly to others in the finance sector like Barclays and Santander who have more than double the amount of complaints per account.

Given the personal connection required to effect a sincere apology, clearly the skill and the disposition of the people staffing Lloyds’ new complaint-handling centre are going to be central to the effectiveness of the department in improving customer satisfaction with the company.

And returning to the research on the disappointing nature of real apologies, it suggests that even the most sincere of apologies will fall short.  Professor de Cremer suggests that his results indicate that “…an apology is a first step in the reconciliation process (but)…you need to show that you will do something else.”  There needs to be considerably more substance to the interaction to leave the customer feeling satisfied with the situation and the organization.

Much to do, banks, much to do.



1. De Cremer, D. & Reinders Folmer, C.P. (2011). How Important is an Apology to You? Forecasting Errors in Evaluating the Value of Apologies. Psychological Science, 22(1), 45-48.

2. McCullough, Michael E. (2008), Beyond Revenge: The Evolution of the Forgiveness Instinct, Wiley and Sons, ISBN 078797756X, 9780787977566

March 22, 2011

Customer Service Roles: The New Frontier for the Over 60s?

Aged 60+?

Coming to the end of a long and rewarding career and getting ready to potter around the garden and finally read those books you have been meaning to get around to?

Don’t!  New psychological research from the University of California, Berkeley suggests that you might be coming into your element as a potential customer service representative. 

Ok, it’s fair to say that the research doesn’t make any specific job suggestions for you, and there are probably a host of roles which the research might indicate increased success in for the over 60s.  However, what Robert Levenson’s research does suggest is that, as we get older, our emotional intelligence improves and that it reaches its peak as we go through our sixties.

Specifically, our capacity to empathise with others and appreciate their sadness or disappointment is heightened in comparison with younger people.

In addition, older people are better able to see the positive side of a negative situation, even if that situation is palpably grim.

Levenson argues that we become more suited to social and compassionate activities as we age and that the changes in our nervous systems which bring about these emotional intelligence changes are likely to give us an advantage in the workplace in those tasks involving social relationships and caring for others.

It’s probably obvious by now why this might be important news for customer service organisations: feeling and expressing empathy and being able to see positive aspects in all situations are invaluable traits in customer service representatives.  Yet the age profile of front-line customer service representatives in most sectors is way below this 60+ demographic.

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