Who would you “tip”?
Do you like a discount? Sale? Off Prices or Rebate?
For most of us (rather all!), the answer is yes. Who won’t if one gets better value for the money? Items that are perishable get on sale at the end of their life and rest (nonperishable)gets on sale on events like Black Friday!
Ironically will anyone pay more than what was asked for?
The answer is “Yes”. For most of us (rather all!), the answer is yes.
We pay tip sometimes!
Tip: When and Why?
Different people have different reasons to pay tip such as
- It’s customary to pay at some places such as to waiter at a restaurant or bellboy at a hotel
- It's convenient such as giving tip as “keep the change” to avoid carrying coins
- Social or Peer pressure such as giving a tip (or giving more money in a tip) while on a date or with office friends
- Helping poor or needy
- Appreciate or acknowledge service
- In anticipation of better service ( if given before service delivery or given for better service next time)
Everyone will have one or another reason for paying a tip. What’s yours?
We like technology to solve problems but the friction which still exist and removed by human generate humility in response to shed a few dollars as a tip.
In a technology-driven world if we lose human touch then we will lose humility as well. Today one pay tip to Uber driver but when Uber will start sending a driverless car then will you give any tip to Uber? Tip for better driving or better services!
What if you order food through an app and it’s ready when you reach the restaurant. Will you give tip to an app for taking your order and be ready with it when you reach the restaurant?
Maybe Yes as its the tip that acknowledges a good service!
How should a company respond to this new culture?
More and more we use an automated system, we pay less as a tip. One can pay tips to these automated services which reduce the friction of humans in the loop while delivering service. These tips can be collected and shared with people supporting these services from behind the scene. Say someone at call center addressing concerns or a software developer writing efficient code or an office staff ensuring stationary for the employees so that you as a customer (or User ?) get good service.
Or companies can collect tips to pass it to the people affected by the company or in charity. Few Product companies pay a dollar or two to some charity from each sale of their product. Can service companies do the same by collecting tips and pass it to charity!
Receiving tips is a direct and concrete measure of how good users liked service. Better than a default high star rating option for feedback.
Companies can also link their service performance by the amount and number of times one pay tips. Somebody paying few dollars vs five-star rating is always better to reflect the emotions of a served customer!
Can marketing manager, consider it a next opportunity to groom people to pay tips as part of a day to day actions just like marketer have been grooming people to inculcate new habits favoring their products! (Cereal in breakfast! )
What’s Next?
Above examples, open lots of possibilities with each look promising. Scenarios like this where there are so many uncertainties, the best way is to try out, run a number of incremental experiments without much risk of losing out money or brand value. Read how organizations are running experiments first instead of launching in a big bang way where there are so many uncertainties!
