Will a higher minimum wage translate to better service levels?
Through a special arrangement, what follows is a summary of an article from COLLOQUY, provider of loyalty marketing publishing, education and research since 1990.
Nearly six out of 10 American consumers say they are justified in expecting better service to accompany a minimum wage hike to $15 an hour. But an even greater number, seven out of 10, doubt they’ll get it.
A COLLOQUY survey of 1,500 consumers asked if they would expect better customer service and a better overall experience if the minimum wage were raised to $15 an hour. The current federal minimum wage is $7.25 an hour.
Here are some key results:
- 59 percent of all respondents said they are justified in expecting to receive better service and a better overall experience with a $15 an hour minimum wage;
- 69 percent of all respondents said they don’t believe they would receive better service or have a better overall experience;
- 71 percent of men said they don’t believe they would receive better service, versus 66 percent of women;
- 66 percent of young Millennials in the 18-24 age group said they are justified in expecting better service, versus 59 percent in the same age group who said they would not receive it.
- 60 percent of older Millennials in the 25-34 age group said they are justified in expecting better service, versus 69 percent who said they would not receive it.
Raising the minimum wage is a front-burner controversy. President-elect Donald Trump’s choice for labor secretary, restaurant executive Andrew Puzder, is a critic of significantly raising the minimum wage.
“The minimum wage issue is of keen interest to marketers who believe in the power of the front-line employee to engage the customer and create an experience that sets a brand apart from competitors,” COLLOQUY Editor-in-Chief Jeff Berry said. “Brands may see an opportunity to surprise and delight customers based on the skepticism shown by so many in the survey about actually receiving better service.”
- Colloquy Survey: 69 Percent Of U.S. Consumers Doubt Raising Minimum Wage To $15 An Hour Will Lead To Better Service – Colloquy
Discussion questions: Should consumers be skeptical that higher minimum wages will help improve in-store service levels? What other factors are equally as important in supporting service levels?