Empathy: A Core Business Metric for All Industries

19th November, 2025

How is Empathy used in Business?

Empathy is definitely one of the most important virtues in humans that can help a person become more kind and grounded in life. However, modern studies show that empathy is not important for personal lives, but it can also make a big change in the workplace. For years, it has been considered a soft skill, and now, it has become a strong business metric that is required for all industries.

According to a 2025 study, it has become a more tangible metric for business, which is directly related to customer behavior, communication, and company revenue. There are evident results that showcase the paramount importance of empathy, which can be beneficial for a business. According to a recent survey by YouGov over 11 countries,

  • 73% users are more likely to avoid a company that shows a lack of empathy
  • 43% of the users can already leave a brand for the same reason only
  • 61% users are willing to pay more to a brand that shows genuine care
  • 92% users trust and prefer human interaction over AI chatbots that are 24/7 available
  • 71% users believe that AI can never replicate the genuine human connection
  • 88% of customers believe that empathy is important
  • Only 63% customers believe that the companies are able to show empathy

With these results, it has become clear that empathy can directly impact customer behavior, and it provokes their intention to buy. Whether they want to stay or leave the platform, empathy can help them find more clarity in online decisions. CEOs and CFOs are required to pay attention to this dataset as it is no longer just a nice-to-have differentiator but has become mandatory to stay ahead in the game.

Key Findings on Empathy Influence

  • Purchase Decision - Empathy definitely affects purchase decisions, as customers are not just annoyed when empathy is lacking, but they are more likely to leave, as there are many other competitors who can offer better tre  atment.
  • AI with Limits - While AI is globally influencing different industries, customers believe that it can never replace humanity. Leaders should not bet everything on digital transformation as the future can be profitable only when AI and empathy work side-by-side, not against each other.
  • Empathy Training - Yes, it is true that empathy can be trained. Many big names, such as Ford, Fidelity Investments, Ritz-Carlton, etc, have already started working on employee empathy skills since it is not just a personality trait but a skill that can be beneficial for boosting business growth and sales.

Empathy as an ROI Unit

Since empathy can help to engage and retain more customers, it can also provide great returns on investment. It can help to improve annual revenue and ROI for all kinds of businesses. According to a report in 2024, industry leaders claimed that empathy helped them to engage 3 times more customers and reduce expenses by half compared to before. Employees are more likely to stay in an empathetic workplace than in a company that does not appreciate their presence. The report also explained that empathy can help to improve customer satisfaction by up to 20% and boost company revenue by 5–10%. Therefore, it is no longer a soft skill but an effective strategy that comes with great returns.

Tips for Executing Empathy

  • Audit the empathy gaps
  • Integrate empathy in the system
  • Balanced speed with humanity
  • Intentional empathy training

Empathy is a strong business metric that every company should leverage, or else they can lose customers. Embark on your journey of empathy to establish your business strongly.

Tags: How is Empathy used in Business, What is the Role of Empathy in Business, How to Show Empathy in Business, The Importance of Empathy in the Workplace