Meaning ● Empathetic Discounting, within the context of SMBs (Small and Medium-sized Businesses), refers to the counterintuitive business phenomenon where individuals, often managers or leaders, undervalue or outright disregard the perspectives, ideas, and contributions of others, especially employees or customers, despite possessing the cognitive ability to understand and appreciate them. This cognitive bias becomes particularly detrimental during periods of SMB growth, automation implementation, and other significant strategic shifts; for example, failing to recognize early resistance to new CRM software, or missing insights from frontline staff regarding workflow optimizations. It negatively affects decision-making around implementing new business models; undervaluing customer input regarding SaaS subscription tiers directly impacts product adoption and profitability. Strategic implementation of new business procedures suffers without genuine consideration of stakeholder needs. The consequences frequently surface in reduced employee engagement, increased resistance to change, and ultimately, diminished business performance despite technological advancements and business opportunities. Discounting ideas from your own employees and from your customer base can often cause SMB’s to fail when automating or growing too fast.
