Has Tipflation Reached a Tipping Point

HAS TIPFLATION REACHED A TIPPING POINT

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Yes, I am jumping on the tipping bandwagon. Everyone is doing it. Not only has the average tipping percentage increased dramatically, but who we tip has expanded. It appears more people and businesses are requesting and expecting a tip these days. It doesn’t matter if you are picking up an order to go, or a cashier is ringing out items you selected to purchase. The employee spins the iPad around asking us how much we would like to tip. Consumers feel pressured to not only tip, but tip well, with the employee standing there watching. This is known as “guilt-tipping”.

Tipflation and tip creep are terms to describe the United States recent widespread expansion of gratuity to more industries, as opposed to being traditionally only prevalent in full-service restaurants.

The most frustrating part is how businesses are trying to put the burden on their customers to providing their employees a livable wage. We no longer reward excellent service with a generous tip. The increase in asking customers to tip is causing a poor customer experience.

*Related – “Shrinkflation”: Learning to Recognize And Navigate The Customer Service Recession

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DOORDASH WARNS CUSTOMERS THAT IF THEY DON’T TOP, THEIR DELIVERIES MAY TAKE LONGER

DoorDash is working the “guilt-tipping” movement. Recently DoorDash has started sending out an alert to their customers, who choose not to tip, that says, “Orders with no tip might take longer to get delivered — are you sure you want to continue?”

The app also shares this alert to customers, “Dashers can pick and choose which orders they want to do,” says the alert, which refers to its delivery drivers as Dashers. “Orders that take longer to be accepted by Dashers tend to result in a slower delivery.”

One DoorDash driver shared with Business Insider that his earnings have plummeted over the past five years and DoorDash pressuring customers to tip has not helped his earnings. Since the announcement of the no-tip warning, he’s noticed a drop in tips, he said. “It’s pretty crappy that they’re turning on us,” he said of DoorDash. “I do feel like the customer should tip us a bit better. But at the same time, DoorDash should pay us better.”

Earlier this year, DoorDash started sending messages encouraging their customers about tipping their drivers more. These messages told customers that they could increase tips for 30 days after a delivery.

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About The Author

John DiJulius

John R. DiJulius is a best-selling author, consultant, keynote speaker and President of The DiJulius Group, the leading Customer experience consulting firm in the nation. He blogs on Customer experience trends and best practices.