Empathy Rating Index (ERIC) and Profitability

In 2004 Harding & Yorke constructed a benchmark programme measuring ‘how it feels to be a customer' and ‘how it feels to be processed as a customer'. From the outset this was considered very different from the more common Customer Satisfaction Indices. The Programme was called ERIC (Empathy Rating Index Company).

ERIC consisted of measuring 200 companies from 13 different industries twice a year. Over the three years 2.5 million data points have been analysed and it was time to investigate any correlation between the results and Profitability.

Dr Yuksel Ekini from the University of Surrey was supported by Prof. Merlin Stone in the research.

The purpose of the research was to investigate the relationship between ERIC, which is one of the key customer relationship benchmarks, and profitability in the call centre industry. The study included 1400 customers and 28 UK companies from the service and manufacturing industries.

The findings of the study suggest that ERIC has a statistically significant impact on profitability as measured by Return on Capital Employed (ROCE). The inter-correlation between the six dimensions of ERIC and profitability was very strong (85). The ERIC model explained 72 per cent of the total variance in profitability which was extremely good (p < .05). Five out of the 6 ERIC dimensions had a statistically significant impact on profitability. Importantly, the EMPATHY dimension had a positive impact on profitability. Two dimensions had negative impacts on profitability but had positive correlations with the Empathy dimension.

The study offers implications for developing successful customer relationships and managing profitability through ERIC.

We are happy to take interested parties through the findings of the research and discuss the implications for the Call Centre and other industries.  These are significant.