How much tipping is too much?
The drain on the consumer wallet right now is real. Everything costs more and everyone seems to be wanting more of your dollar.
So, when businesses swivel that screen around with requests for 15, 18, or 20% tips on an order, it’s no wonder people have become less inclined to generosity. Where once the tip jar was a feel-good moment to give your barista an extra boost, it now seems more like a requirement.
As a business owner who might be inclined to offer the tip screen post sale, it’s important to consider how you should respond to this. While tips are a normal expectation for some types of transactions, you might need to reconsider their role in your business’s transactions.
Since the holidays and a busier sales season are just around the corner, let’s talk about this important point of sale issue for your business right now.
Are Gulf Coast Consumers Exhausted by Tip Screens?
“Good customer service costs less than bad customer service.” ― Sally Gronow
Consumers are tired of tipping. A 2023 survey revealed that over half of consumers feel like they are being pushed into tipping when using tip screens at checkout, and a whopping 70 percent felt like they were asked to tip way too often.
Another survey showed around two-thirds of Americans have a negative view of tipping.
A lot of this sentiment is likely due to the once-voluntary pandemic-era practice of dropping a little extra in the tip jar. This originated out of goodwill for workers but is now an established part of checkout tip screens. Shoppers are getting asked to leave a tip in more and more situations where they previously wouldn’t have been expected to give one.
The question for companies utilizing tip screens like these is how tip fatigue might be impacting business. Are you losing customers over this?
It’s a question particularly important for those non-traditional tipping businesses, like retailers, quick service restaurants, self-checkout kiosks, convenience stores, and event counters.
Should your business use tip screens?
Here are some questions to ask yourself to know how to respond to customers’ growing frustration and maintain customer loyalty.
- Is your business in a traditional tipping industry?
- Does your business employ tipped workers?
- What are your customers’ preferences and habits?
- Are your competitors asking for tips?
- Do your tip screens address the privacy concerns of customers when it comes to who can view the screen?
- Does your service quality merit a tip?
- Is your suggested tip range appropriate for your industry?
- Do your customers know where their tip is going?
Addressing these questions and adjusting your practices proactively may help tip you (yep, I said it) in a sustainable direction on this customer management issue long-term.
With inflation in full swing, the customer relations boat is a bit tippy right now. (I just can’t help it.) We’re here to help steer you in the right direction.
We’re here with more than business tips. 😉
James Thomasson
