The importance of active listening and empathy in producing good outcomes

Active listening is key to producing good customer outcomes. It goes beyond hearing words and requires you to understand the meaning and energy that the words carry. It involves engaging with focus and concentration, demonstrating understanding to develop a rapport with the person you are in conversation with and helping them feel at ease. That is why it’s such a vital skill to use when working in front line services.

When a financial services customer feels at ease, they are more likely to be open with their conversations. It is through that openness that a front-line agent can really get to the heart of what is happening for the customer and help produce the best outcome for them moving forward. Active listening and demonstrating empathy creates a connection between an agent and a customer, and when we connect, we can build a relationship and trust, even if it is just for a moment in time. A moment in time interaction can deliver an outcome that goes far beyond that single conversation.  

But how can active listening and demonstrating empathy be achieved in practice across all channels used to engage with a customer? As a starting point, considering these basic listening skills can be helpful:

• Sensing: listen to the words, voice, tone and body language (if you are having the conversation face-to-face). Even if you think it is not important, listen to what is being said – it may create an opportunity for further information or support to be offered down the line.   
• Interpreting: what meaning is assigned to the words and phrases being used?

Active listening is the first step to effective communication, the second is in how you respond, making sure it is empathetic, relevant and links to the information you have been provided with.

• Responding: this could include using verbal and non-verbal responses to demonstrate your engagement. Written ‘nods’ are particularly important when engaging with customers online as it demonstrates that you are still there and engaged in the conversation. It may also include reiterating the information the customer has provided to evidence your understanding of what has been shared or asking further questions to better understand the individual and their circumstances. And this happens throughout the conversation.  
• Evaluating: to assess what is the right solution or support for the customer, it’s important to consider the information they have provided, including the subtext of what they may be saying. The customer may not always be satisfied with the outcome so being able to properly explain the reasoning behind the end decision is an important step to reducing dissatisfaction.

When it comes to demonstrating empathy, this will understandably come more naturally to some people than others. For example, if an agent has a similar life experience to the customer and can relate to their circumstances, they may naturally be more understanding and empathetic than an agent who has no experience of that situation. It’s important in these circumstances not to express your own feelings onto the customer or make the conversation about you, as no two people’s experiences will ever be the same. 

Although shared life experiences can aid an empathetic conversation, it’s impossible to have experienced every situation your customers have faced. Training and helping advisers to understand the types of questions and responses you may come across is key. This is not to say that agents need a script or similar tool, as that risks sounding unnatural and breaking any rapport building that may have been achieved. By understanding the value of open questions and active engagement, empathy can be used to successfully interact with and support the customer.

Financial service providers should, as part of their assurance work, identify where employees need support in either listening or speaking skills and provide this through feedback and training. This should go beyond desk based, induction training. Instead, firms can engage and equip staff for scenarios they may face with practical training techniques. This may include role playing conversations with other staff, listening to calls as a group and discussing the pros and cons of the conversation, shadowing members of staff and discussing the situation after, or engaging with third part organisations to increase the likelihood of successful signposting. 

Through ongoing training and monitoring, quality assurance checks and regular supervision, agents can feel empowered to support customers to the best of their ability. 

The techniques listed above can be built into training with all staff, not just those dealing directly with customers. Developing an empathetic culture within a firm, from senior management through to front line staff, can help to create a positive environment to work in. It can help to ensure that staff feel able to raise any challenges that they may be experiencing, personally or professionally, that could affect their interactions with customers. A positive, open culture can help improve the services that are delivered, and ultimately, ensure good outcomes for customers are achieved. 

Anna Roughley, Head of Insight at the Lending Standards Board