The Impact of Tipping and “Tipflation” on Customer Satisfaction (podcast)

Join customer service expert Shep Hyken as he talks about how tipping and “tipflation” impacts customer satisfaction scores and the need for businesses to improve customer service and experience.

Top Takeaways:

• The frequency of tipping, or “tipflation,” has increased across industries. Businesses should consider tipping practices’ impact on customer satisfaction and carefully evaluate when and how tipping should be implemented.

• Rising prices and increased pressure to tip can create a sense of guilt for consumers. This may lead some individuals to avoid experiences where they feel obligated to over-tip. Businesses should be mindful of these factors and strive to find a balance that doesn’t cause customer discomfort. 

• High customer satisfaction ratings contribute to the success of brands and can be indicators of financial performance. Companies that excel in simplicity, convenience, and NPS scores tend to outperform the market collectively. 

• Positive experiences in one industry can shape customer expectations in others. For example, exceptional customer service at an Apple store can set the bar for expectations in restaurants and other industries.

• While technology can enhance service delivery, it should be working well and dependable before implementation. Reliability is crucial to maintaining positive customer experiences and satisfaction. 

• Plus, Shep and Forrest discuss ways to increase your customer satisfaction scores. Tune in!