Increasing Customer Satisfaction with Cashless Tipping - youtip
Increasing Customer Satisfaction with Cashless Tipping

Increasing Customer Satisfaction with Cashless Tipping

Did you know your customers will likely leave more positive online reviews about your business if you have a tipping policy or system in place? The analysis of Joe’s Crab Shack study revealed how tipping is here to stay.

Tipping has always been a way of appreciating outstanding service across multiple industries, such as the long-standing 20% tip or more in a restaurant. In a post-pandemic world, businesses and customers are adopting and adapting to contactless or cashless payments including tipping.

However, for a long time, tipping has always been discussed from the perspective of the business and employees. Agreeably, cashless tipping has numerous benefits for both, but it’s time to discuss it from the customer’s perspective.

Cashless Tipping (or lack of) From the Customer’s POV

2020 Amex Digital Payments Trendex survey revealed that 70% of business owners had received customer requests to use contactless and cashless payment options. 

Picture this; a vacationing guest decides to stay at your hotel. After a fantastic service experience from the valet or housekeeper, the guest wants to offer a tip, but they rarely carry cash anymore.

The guest is left feeling guilty, embarrassed, or frustrated that they need to find an ATM accompanied by a fee, or hope a store nearby offers cashback.

Such scenarios are common in businesses without cashless tipping. Nevertheless, 73% of business owners favor cashless payments, and 80% encourage customers to go cashless. Businesses that have adopted cashless tipping are now experiencing far reaching benefits beyond the P&L:

Exceptional Customer Service

Every employee should serve your customers in the most upstanding and professional manner. That’s what encourages the customer to tip. Despite seeing a reduction or elimination of cash payments, many employees still provide great service, but may not feel that they need to go above and beyond if there is no additional incentive.

When an additional tipping mode is available (i.e., cashless tipping), they’re generally motivated to provide full-on exceptional customer service with a greater chance of receiving a tip.

Boosts The Customer’s Health and Well Being

According to a journal published by the American Psychological Association, people who actively help and do well to others are happier and experience better mental and physical health than those who don’t. During the pandemic, employees in the hospitality industry were hardest hit with some hotels and restaurants forced to permanently or temporarily shut down. As the industry opens back to pre-pandemic operations levels, many employees depend on these tips to support themselves and their families.

When a guest performs a generous deed such as tipping, they feel more empowered, even experiencing moments of euphoria called ‘the helper’s high’ due to an overflow of the happy hormones. As a result, guests tend to be in better moods mentally and physically.

Eliminate Customer Guilt from Inability to Tip

Every employee strives to provide the very best service to all your guests. As a show of appreciation, the guest feels its right to tip for the service. Despite the guest’s willingness to tip for the service, if there is no system in place, the employee may not understand if the lack of tip was service-based or a lack of access to cash to leave a tip. Without a convenient and faster way of tipping, the guest is left with a feeling of guilt.

In other cases, your employees might feel the need to ask for a tip. A guest who doesn’t carry cash anymore will be left feeling embarrassed that they have no proper way of appreciation apart from ‘thank you’ despite the service.

Convenient and Frictionless

After a long day traveling and finally arriving at a hotel, the last thing a guest wants to do is search their wallets or even worse, go hunt down an ATM in search of some cash (in their desired denomination) to tip the server, bartender, or housekeeper. This can all be solved quickly and conveniently by cashless tipping solutions and a guest’s smartphone.

Promotes Health, Safety, and Security

According to the Federal Reserve, the frequently used notes, $1, $5, $10, and $20, have a lifespan of up to 7.8 years. The notes will have exchanged hands publicly many times within that amount of time and accumulate infection-causing organisms and germs.

Additionally, carrying cash increases the risk of the guests being mugged or robbed, especially when the guest decides to go to the ATM in later hours to withdraw cash for tips. Not to mention the safety of tipped workers carrying cash.

With the rapid adoption of peer-to-peer payment apps like Venmo and CashApp, it’s imperative that businesses protect their staff and guests from potential security risks that come with having to exchange sensitive personal info like your name, phone number, or email. Enterprise Cashless Tipping solutions like youtip were purpose built to provide a safe, secure way to make these transactions. 

Cashless Tipping is the Future

As cashless tipping gains momentum, youtip will continue to be at the forefront of this technology, providing convenient and frictionless tipping option for your customers. Without the need for an app to download, your customers can simply access youtip by scanning a QR code or links sent to them via any messaging channels.

Future proof your business operations with simple and secure contactless tipping. For more information on implementing this system, schedule a demo with youtip today.

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