The rise of digital tipping screens in small businesses has changed the way customers show their appreciation. From restaurants to spas, businesses are adopting preset tipping options to enhance the tipping experience for both customers and employees.
However, implementing digital tipping options requires careful consideration to strike the right balance and cater to the unique needs of your small business. Here’s a guide to deciding whether you need digital tipping options, and how to effectively use them.
Consider your business model
When setting up preset tipping options, it’s important to align them with your business model. The tipping percentages you offer should be tailored to encourage customers to tip generously—but they should also be commensurate with the type of service offered. For businesses that primarily offer takeout services, lower tipping options might be appropriate since less service is required. On the other hand, full-service restaurants or professional service businesses may opt for higher gratuity options to reflect the level of service provided.
Conduct market research
Understanding your local market and customer base is crucial in determining the best approach to tipping options. Analyze how similar businesses in your area handle tipping and get feedback from regular customers on their preferences. Additionally, research tipping data for your region to gain insights into average tipping percentages. What works in one city may not be suitable for another. Remember to involve your front-of-house employees in the process, as their feedback can be valuable in fine-tuning the default tipping options.
Consider the custom tip option
While preset tipping options are helpful in guiding customers, the custom tip option is also helpful. Allowing customers to input a dollar amount of their choosing provides them with flexibility and can lead to more generous tipping. Removing the custom tip option might discourage customers from tipping altogether, as they may prefer leaving tips in whole dollar amounts rather than preset percentages. Striking a balance between preset options and the custom tip feature is more likely to cater to the wide range of customer preferences.
Collect data
Using a point of sale (POS) system to collect tipping data provides valuable insights into your business operations. Tracking how much employees receive in tips during their shifts allows you to better understand employee earnings and plan staffing accordingly. Furthermore, some POS systems prompt customers to provide feedback with ratings and reasons after tipping. This valuable data can help optimize employee roles and improve overall business efficiency, leading to higher employee and customer satisfaction.
By customizing tipping options to suit your business model, conducting market research, using the custom tip option and leveraging data collected from POS systems, your small business can create a better tipping experience. As customer preferences continue to evolve, staying adaptable and responsive to feedback will ensure your business thrives in this new tipping era.
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