Salon & Spa Tipping Trends: How Technology & Software Are Changing How We Tip

Salon & Spa Tipping Trends: How Technology & Software Are Changing How We Tip

February 15, 2022  /  By Tippy

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Tips are getting Tippier!

…and that's not just a cute saying. It's true! We here at Tippy are constantly monitoring tipping trends, and we certainly have the bandwidth to do so - you can now find us in all 50 states and processing over $100 million of tips annually.

Put in simpler terms … Tippy is processing a new tip every 1.5 seconds of the workday. It's safe to say that …Tippy knows tips. Meevo users can visit MeevoXchange® Marketplace to learn more about Tippy and how our partnership can help enhance the tipping experience!

Let's take a look at these trends and the drivers behind them.

2021 Trends in Tipping:

Tipping Trends in 2021

What's Driving Tip Trends? Technology and Inflation

Let's look at the technology aspect first. Since Tippy's birth, we've been espousing the need to update your tipping processes to optimize your employees' earnings.

Tippy's new UI screens bring back the personalization of tipping to the customer when now using their credit card. The ease of this new technology coupled with the increasing familiarity by the customer has led to increasing tips. Simply writing a tip on a receipt was resulting in lower tips.

The great news is that technology has now enabled iPad screens, mobile apps, and corresponding software that allows the customer to "know you know" what they tipped! Increasing awareness of this new technology has been a significant driver in these tip increases.

A prime example lies in a takeout coffee shop. Five years ago, you rarely tipped the cashier for a "takeout" cup of coffee. But now, when the receptionist spins the iPad around, and it offers several tip options (and you know she's watching), you tip! Technology at work to "optimize" earnings.

Now let's dive into inflation and how it's impacting tipping. Higher service prices mean larger tips when they are received as a percentage of the service amount. If you aren't presenting your tip screens that way, your staff is losing money.

Why you ask? This is because when you increase the price of a service, customers tend to still tip the old amount. Imagine a stylist who just celebrated a price increase and a regular client that would come in for a $100 service now pays $125 for the same service.

They've been used to tipping their stylist $20 each visit which is 20% of a $100 service. If the client is not given the proper screens to educate them on an appropriate tip amount, that same stylist could miss out on an extra $5 per visit.

Picture a stylist that sees 10 clients a week. They could lose $2,600 of additional tip income annually, which is conservative. That's a considerable loss in income that can result in unhappy stylists.

But Tippy helps to optimize both the experience of your customer and the tips for your service professionals, resulting in happier guests and staff – the perfect recipe for salon and spa success!

Interested in learning more about Tippy? Visit the MeevoXchange® Marketplace today or contact our sales team for more information. Not a Meevo client but want to see how you can thrive with our innovative, award-winning salon and spa software?  Schedule your demo today to experience Meevo for yourself!

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About Our Guest Contributor

Tippy

Tippy is a digital tipping system built for beauty industry professionals by beauty industry professionals. Tippy’s disruptive technology offers a suite of tools reducing business owners’ processing fees and improving service providers’ tips, helping them to meet and exceed financial goals. Our goal is to optimize the tipping experience for both customers and staff by providing convenient, cashless tipping solutions. We offer both a kiosk based version for in-person tipping and a QR code version for digital tipping to help meet all needs of salons and spas. For more information, visit MeetTippy.com

 

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