Working in the service sector can be difficult. And it is even more difficult for many who depend on themselves thanks to an increasingly cashless society. All of this makes it difficult for service-based companies to retain the best talent.
Luckily, Tippy is working to solve this problem. Read about the company’s digital tip solution for employee retention in this week’s Small Business Spotlight magazine.
What does the business do
It offers digital tip solutions.
CEO David Tashjian told Small Business Trends: “As customers carry less and less cash, the frequently asked question on the counters these days is …” Can I tip my card? “And the payments industry has done a bad job providing convenient ways to keep up. A good example, the hotel’s cleaning staff, twenty years ago, more than 80% of hotel guests left a Today, less than 30%, and when a hotel, salon, or spa owner allows credit card advice, two more problems arise: 1) costly credit card processing costs, and 2) the cost of credit card processing. Delayed receipt of their own, as the service professional now has to wait between 1 and 2 weeks to receive through payroll.
“Tippy’s disruptive technology offers digital tip solutions for all industries, from the hospitality industry to pet beauty and hairdressing! We offer owners a set of tools that show they care about their staff, and This is what retention is all about.Tippy results in 22.3% higher gratuities, makes them instant to the service professionals and, by the way, saves the landlord the costs of processing the gratuities. all while offering a comfortable and personalized customer experience.Happy customers, happy employees … happy business “.
Business niche
Offering excellent customer service.
Tashjian says, “When we trained Tippy, we determined that the best way to solve a problem was to hire team members who had experienced it first hand. All of our successful client managers who work with salons and spas, for example, they worked behind the scenes at one point in their careers, so they understand the problems first hand and can better relate our solutions. “
How the business started
Combining different skills and experience.
Tashjian explains, “Two brothers-in-law founded the company. One from fintech and one from the hairdressing / beauty industry. It was a match made in heaven!”
Biggest victory
Grow a team with a cohesive goal.
Tashjian says, “I know it may sound like a cliché, but our biggest ‘win’ in the history of our company is to bring together a team of individuals who ALL have the same definition of winning. It seems easy, but it’s hard to measure. growing up. Everyone at Tippy is customer focused and defines “winning” as offering the best solutions for them. That’s why we all work so well together, and that makes the job fun. “
The biggest risk
Incorporate an external partner to build the solution.
Tashjian explains, “We are a technology company and of course we believe we build things better. We developed our own digital portfolio, but we struggled to deliver the robust features our customers deserved. And in the end, that’s the what we should try: to offer the best to our customers! So, after extensive research, we teamed up with Branch.This partnership involved multiple risks: will our cultures clash? Did we have similar commitments to customer service? etc. If the partnership failed, it would have meant annoying customers and a potentially disastrous waste of time on our roadmap.Fortunately, we have not only chosen a good partner, we have chosen a fantastic one! We are receiving wonderful customer reviews. and we are working together in a fantastic way. This is a decision we will never doubt! ”
Lesson learned
Get enough funding soon.
Tashjian says, “Don’t be afraid to take more money in your first rounds of financing. Each round of financing requires a considerable amount of time and focus, and while more money in advance means more dilution, the benefits of not having to return in the market so many times they allow you to focus more time on the most important thing: running and growing your business! “
How they would spend an additional $ 100,000
Sales and marketing.
Tashjian adds, “Today, valuations are driven more by growth and less by the end result. In the fintech space you have to focus more on the top line every day.”
Team strategy
Open communication.
Tashjian says, “Of course we do normal weekly meetings, but we go a step further. We have quarterly Citywide meetings. Here we share our full finances as well as all the important discussions we are having in the industry. Both the our victories as well as our stumbles are heard by everyone in the company. It keeps everyone paddling in the same direction, minimizes surprises and creates a wonderful work environment in this world of flexible and virtual workspaces. “
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Image: Tippy, David Tashjian and Terry McKim