Bill & Tip Blog

How to tip in beauty studios, barbershops, SPAs and how it affects employee motivation

Recently, tips were left only in restaurants. Today, the practice of tipping for the quality of service is spreading to all areas of service, including beauty studios, barbershops and spas. How customers choose to tip is also changing, a consequence of the pandemic period and rapid digitalization.
To find out how tipping is going in the beauty segment, we spoke to beauty studio owners and in today's article, we share the top trends with you.

Clients are ready to thank employees financially

The quality, speed of service, mood of the client and additional recommendations after the procedure influence the decision. As practice shows, the size of tips in Europe leaves on average 10-15% of the cheque amount. At the same time, the amount of remuneration is not always important for the specialists themselves. However, it is important for the master that next time the client comes back to him. Tips in this case act as a kind of litmus test and show whether the person liked it or not. The incentive to work better also increases, because on an emotional level he feels more in demand.

Customers have gone online

Cash payments have almost ceased.

Increasingly, customers do not have cash on them. It is now more convenient (and during the pandemic it was safer) to pay for a service online. The share of cashless payments worldwide is increasing rapidly. For example, in Portugal, according to Jornal Económico, the XIII report on trends in payment methods released by Minsait Payments, a company of the Indra group, Portuguese people favored cashless payments in 2023. The percentage of adults with bank accounts is 92.6% and the percentage of adults using the Internet is 84.5% up from 2022. Portugal is also the third European country where cashless payments are most in demand, with 59% of the population, ahead of only the UK (69%) and Spain (72%).

The trend has also had an impact on tipping - customers now also want to leave a non-cash tip. And a couple of years ago this sphere was associated only with cash.

Using digital products to accept tips

It is well known that a business that reacts to customer requests and trends promptly is far ahead of its competitors. For example, the US beauty industry widely uses systems that allow the client to quickly choose the size of a non-cash tip and immediately pay. According to business owners, if you make a convenient system and remind the customer that this option is available, customers will tip.

Cashless payment has become synonymous with absolute convenience, so cash is now a rarity for customers. No more carrying around a wallet, worrying that it will get lost or you forgot to bring it with you. In its place is a phone or watch. The logical development towards digitalization continues.

The best way to say: "Thank you!"

The abandonment of cash has encouraged IT start-ups, banks, and large fintech companies to develop online tip services. The growth of the market has also been affected by the fact that businesses using products such as our Bill&Tip, for example, no longer need to include the tip in the cheque if the guest wants to leave it in cashless form. Neither do they need to administer the tip, as is the case when the tip is left via a bank terminal / TPA. This significantly reduces the time and workload of administrative staff and accountants. The system does all the calculations automatically based on your chosen parameters and transfers tips directly to each employee.

Convenient for everyone: business, employees, financial service. The owner sees who and in what amount receives remuneration. This allows you to assess the level of professionalism and relevance of the employee. The specialist himself sees a detailed itemization of payments. It is also a great way of motivating the team, given that the employee can receive tips and withdraw them to his or her bank card on the same day.

Online tipping services usually allow the client to transfer the reward by QR code. It is placed on employee cards, studio counters, branded stickers and cheques. The Bill&Tip service allows you to leave a tip not only by QR code but also with the help of a direct link - created for a team or an individual specialist. The link can be sent via SMS or messenger along with a request to leave a tip.

Thus, the statistics on the growth of cashless payments and feedback from business owners themselves confirm that the tipping culture has grown. The beauty segment is no exception - clients increasingly want to tip their specialists online. And there are modern tools to fulfill this demand.

Let your services be of high quality, your approach to clients is individual, and your business methods are relevant to the demands of the time. Be first, be ahead!

Taking care of you and your business,
Bill&Tip (Bill and Tip) Team.

Want to learn more about how Bill&Tip can help your business or request a consultation from our team, simply follow this link.

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Beauty studios, barbershops, SPA