Consumer Empathy for Brands - Part 1

Defining Consumer Empathy

It is no secret that in the current climate (i.e., rising inflation, cost of living crisis, category congestion, and shifting consumer values - just to name a few), consumers are becoming more discerning about where they spend their money and how they invest in products, services, and brands. Their relationship with brands transcends what we used to traditionally think of as consumer “loyalty” and into a more involved relationship called “Consumer Empathy.” This four-part series will dive into what Consumer Empathy is, why it’s important, how consumers empathize with your brand, and what areas of business you should prioritize to drive Consumer Empathy.

Defining Consumer Empathy

We will start by defining what Consumer Empathy is. In its simplest definition, Consumer Empathy is the “ultimate” and pinnacle state of a relationship that exists between brands and consumers.

As many brands and businesses often talk about their  “relationship” with consumers, it is worth taking a minute to dissect the word “relationship.” A “relationship” is defined as “the way in which two or more concepts, objects, or people are connected, or the state of being connected.” At the end of the day, if empathy is the pinnacle state of a relationship with consumers, that means it is the way that consumers form a connection with your brand. Successful brands such as AllBirds, REI, Airbnb, LUSH, and Fenty all lean into empathetic positioning and marketing to build better relationships with their consumers.

More often than not, the connection built through empathy is an emotional connection, and not one built off more baseline or hygiene factors such as convenience or price. This emotional connection is reciprocal in nature and is essentially a two-way street between brands and consumers. At the core of Consumer Empathy, brands need to know and understand their consumers, meeting them where they are and delivering on their needs; and consumers need to trust in and feel seen by brands in order to willingly engage. We will dive into these emotional connections in greater depth in Part 3 of this series – How do consumers empathize with your brand?  

The Difference Between Empathy & Loyalty

Getting back to what Consumer Empathy is, it pushes beyond transactional loyalty or purchase frequency, which used to be the end goal for many brands – “how do we get consumers to come back and spend more?”

There are stark differences between loyalty and empathy. Loyalty focuses on tangible and functional factors, most often product quality and experience, to drive a relationship (i.e., is reliable). Loyalty operates on the assumption that if consumers have a positive experience with your products and services, and they are perceived to be good quality, that those consumers will naturally come back; it is a transactionally based relationship. 

In the past, when consumers’ consideration set was “jobs to be done,” this premise was effective. However, as personalization and customization continue to take center stage in expected experiences, and personal value sets shift, consumers are looking for “more” from brands, products, and services.

Where empathy differs from loyalty, is in that “more.” Rather than being tangible and transactional, empathy relies on developing deeper relationships and trust over time with focus on intangibles such as values, social responsibility, shared experiences and understanding, etc. (tangibles become more of a hygiene factor). In a study conducted by Ipsos, across 25 countries, an average, over 60% of consumers (ages 18-75) say they prefer to buy from brands they believe reflect their own principles.

Why Empathy is the End Goal

Now, you might be thinking, “Why wouldn’t Loyalty be the end goal? Why do I need to put so much more effort into building empathy?” The answer is simple; consumers can purchase your brand frequently but dislike it and not have an emotional connection with it. When push comes to shove, empathy is often a deciding factor of why they will choose your brand over another, or why they will advocate for your brand. Essentially, loyalty does not equal love, positive sentiment, or connection with a brand.

Let’s take Amazon for example. Many consumers rely on Amazon as a service as it is (mostly) reliable, helps fill a need, and delivers convenience that makes their life easier (guilty!) – remember those hygiene factors? However, many consumers are conflicted in their use of Amazon. They are quick to boycott as they don’t see the business as relating to their personal values or agree with their general business practices or figureheads (no offense Bezos).

One of the most critical points, is that loyalty can exist without empathy, but empathy inherently drives loyalty. As such, the end-goal should be for businesses to build empathetic consumer relationships - not just loyal ones. It is a relationship that helps you better understand your consumer’s needs, drives ROI, and turns consumers into marketing powerhouses!

To learn more, check out Part 2 of our Consumer Empathy for Brands series, Why Consumer Empathy is Important. 

Eleni Bennett is Founder of Eleni Bennett Consulting, a Consumer Insights and Strategy consultancy.

For any inquiries on how Eleni Bennett Consulting can help get you closer to your consumers please reach out to: eleni_bennett@outlook.com