The Tipping Economy: £6.3 billion in rewards for ‘Service with a Smile’
Despite the economic downturn, four out of five Britons (81%) still tip for good service, a new study reveals today1.
On average, Britons tip £13.20 a month for good service – equivalent to a staggering £6.3 billion a year2 – according to a nationwide poll on customer service carried out by specialist insurance provider, RIAS.
The ‘Are you being served?’ study, published during this year’s ‘National Customer Service Week’, shows that three quarters of people (75%) tip more or as frequently now as they did six months ago, and only one fifth (21%) have changed their habits due to the recession.
The fact we’re still a nation that continues to recognise great service will come as particularly good news for the hospitality industry. New regulation, announced by Business Secretary Lord Mandelson, means it is illegal for bars and restaurants to use tips to bring their employee pay up to the minimum wage, and that a greater share of the tips given by consumers for good service will go directly to those who have delivered the service.
A nation not afraid to complain
And we’re no longer willing to suffer poor service in silence. The stereotype of the mild-mannered Briton who won’t complain for fear of making a fuss is now truly a thing of the past. Over nine out of ten (93%) people complain if they experience poor service, with over a quarter (28%) voting with their feet.
Over 50s demand high service standards
The over 50s are also the most discerning customers when it comes to good service and the most likely to take a stand, with 94% not prepared to tolerate poor service. Asking to speak to someone more senior (29%), making a verbal complaint (28%), and going elsewhere (28%) are the top strategies for dealing with bad service across the nation.
The research report from RIAS also outlines the aspects that Britons most value about good customer service, as well as revealing their biggest bug-bears. One third (34%) of Britons rate ‘service with a smile’ as the most important attribute, closely followed by good knowledge (29%). However when asked what annoyed them, over a third (36%) can’t tolerate rude behaviour, whilst the inability to help or answer questions infuriates one in five (18%).
The study also shows:
- ‘Service with a smile’ is most important for today's consumers at restaurants, hotels and supermarkets, whilst ‘knowledge is king’ when dealing with the local council, insurance providers and high street banks.
- The biggest customer service turn off is rude behaviour, whilst inability to help or answer questions is the number one ‘no no’ for consumers at their local council, or when dealing with their insurance provider and high street bank.
- Over half of over 50s (56%, compared with 38% of 18 - 29 year olds) think good service should come as standard.
- One quarter of young people (25%) want to eat and run, compared with just one in ten (12%) of the older respondents, who want to take time to enjoy the experience of eating out.
- ‘Thirty somethings’ are the most generous, with one in five (19%) regularly tipping between 11 - 15% for good service.
Janet Connor, Managing Director at RIAS, comments: “Our latest research shows that good service is quite rightly being rewarded but that poor service is no longer being tolerated – especially amongst the over 50s.”
“As an insurer that specialises in dealing with the over 50s, we know first-hand just how much people value expertise, empathy and responsiveness when dealing with businesses like ours and how important it is to constantly monitor levels of service so that they continue to hit the right spot.”
Customers can contact RIAS on 0800 130 30 30, or online at www.rias.co.uk
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Notes to Editors
1 All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2019 adults. Fieldwork was undertaken between 22nd - 24th September 2009. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
2 Adult population (aged 18+) is 48.8m (Source: ONS Population Projections, 2009). 81% of all adults regularly tip for good service, equivalent to 39.5m. The average annual amount a consumer tips is £158.40. 39.5m adults multiplied by £158.40 comes to an overall annual tip of £6.3bn.
For further information, please contact:
Jo Carr, Dylan Watkins or Vaneetha Balasubramaniam at Seventy Seven PR on 020 7492 0977 or email rias@77pr.co.uk
Alternatively, contact Lucy Pope, Consumer Communications Manager, RIAS on 01202 254445 or email lpope@rias.co.uk
About RIAS
RIAS was established in 1992 and is a specialist provider of insurance products for the over 50s age group.
Part of Fortis (Insurance UK), RIAS has a million motor, home and travel insurance customers, employs over 1,100 people across two UK sites, and is one of the UK’s fastest organically growing insurance intermediaries. RIAS negotiates with a panel of insurers to secure competitive, value for money products.
As a leading provider of award-winning personal and commercial lines insurance solutions in the UK, Fortis has a successful customer-centric strategy, founded on aligning its activities to how customers want to buy insurance, combined with delivering high quality products, manufactured at costs better than market norms.
Insuring in excess of 7 million customers and working with a range of partners, Fortis is recognised for delivering consistent and high-quality customer experiences. In 2008, its non-life profit before tax and interest was £76 million and its non-life GWP was £760 million.