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Top Takeaways:


“When tipping becomes a common expectation in service interactions, consumers will mentally factor it into the price and value perceptions.”  “Customer satisfaction is the aggregate of all our experiences with the company over time. If we feel that tipping, in some industries, is now part of a business practice that we didn’t sign up for, it will inflate the perceived price, which may negatively impact the consumer.” “There are brands out there that strongly impact our expectations, and we use our experiences with them as a benchmark when forming expectations for other brands, even those that are not in the same industry.”  “Be customer-centric. Think about what your customers will be going through throughout their experience. If you can maintain that focus, you can improve customer satisfaction.”


Forrest Morgeson is the Director of Research at the American Customer Satisfaction Index. He is an Associate Professor of Marketing at Michigan State University, where he teaches marketing management, marketing strategy, and marketing research courses to EMBA and MSMR students.  Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.    This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:   
  1. What is the impact of tipping on customer satisfaction scores? 
  2. How can businesses improve customer satisfaction? 
  3. How can businesses ensure that technology improves customer satisfaction? 
  4. What is the negative impact of “tipflation” on consumer perception and value? 
  5. How does increased tipping impact consumer behavior?

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