Booking Deposits and Brand Trust: How Upfront Charges Can Impact CX
In a world where no-shows cost time and money, many service-based businesses are turning to upfront deposits as a safeguard. Whether it’s £10 for a haircut or 50% down on a tattoo, booking deposits have become a growing feature of the UK service economy. Instead of raising prices across the board, deposits offer a way to manage demand, reduce wasted time and maintain affordability for those who commit.
But more importantly, when used thoughtfully, booking deposits can protect the customer experience and reward loyalty.
So how do businesses use deposits not just to protect revenue—but to build trust, increase convenience, and keep loyal customers coming back?
Our latest research offers a window into consumer attitudes around deposits—and where the opportunities lie for brands to build trust and avoid tension.
Deposits May Deter Millennials; They Need More Transparency to Prevent Shopping Around
One-in-three UK adults say they’ve avoided booking an appointment due to needing to pay a deposit. That number rises to almost half of millennials. This further illustrates how millennials like to keep their options open and won’t hesitate to hunt for the best deal. This has implications for sectors like wellness, beauty and fitness, which heavily market to this age group. Brands should be transparent about why deposits have been implemented–else they risk millennials shopping around to find somewhere they don’t need to commit.
Consumers Get It—They Just Want It Done Well
The good news? The public largely understands why booking deposits exist:
69% believe it’s to prevent no-shows and late cancellations
40% see it’s to manage high demand
But 18% related booking deposits as a way for brands to prevent raising prices across the board
With the right messaging, customers will be more prepared to accept deposits—especially if they’re clearly communicated and show it allows a business to maintain prices and provide better service with greater availability. In fact, transparent communication may be just as powerful as the policy itself.
So, What Does This Mean for Brands of All Sizes?
Not all businesses need to implement deposits the same way. Customisation is key—and a one-size-fits-all model could backfire.
For Small and Independent Businesses
These businesses often feel the sting of no-shows most acutely. For them, requiring a modest, clearly explained deposit can enhance professionalism and protect revenue. But flexibility remains critical.
Action point: Consider waiving deposits for repeat clients or allowing transfer of deposits when rescheduling. With 56% of customers believing deposits should always be waived for loyal customers and a further 18% conditionally agreeing for customers with a good track record, this gesture could build lasting goodwill.
For Mid-Size Chains or Franchises
Brands with multiple locations might benefit from a tiered approach—standard deposits for new customers while incorporating waived or reduced deposits for members or app users. This not only encourages loyalty but leverages CRM data to reward consistent behaviour.
Action point: Use deposits as a perk threshold, not a penalty—e.g., “Skip deposits when you’ve booked 3+ times.”
For High-End or Premium Services
Deposits can be positioned as a premium standard—reinforcing exclusivity and demand. In these cases, the booking deposit becomes a signal of value, not friction.
Action point: Highlight how deposits protect the customer’s time and ensure availability. Framing matters.
The Customer Experience Mandate
At its heart, this isn’t just a pricing question—it’s a customer experience challenge. In service-based industries, consumers expect more than just a transaction. They want respect, recognition and clarity. In fact, 71% of customers say they’re comfortable paying a deposit—if the cancellation terms are clearly communicated.
That insight highlights a broader truth: deposits are no longer just a policy—they’re a signal. They tell customers how much you value their time, your own service and the relationship between you. When deposits are introduced thoughtfully, they can enhance trust, reinforce professionalism and even strengthen loyalty.
But mishandled—through rigid rules, vague wording or impersonal delivery—they risk becoming a source of friction.
Below are a few CX principles that businesses of all sizes can follow to make appointments easy to manage. Afterall, no one likes jumping through hoops to make—or change—an appointment. In fact, inflexible systems are more likely to cause frustration than deposits themselves.
• Transparency: Be clear and upfront about why the deposit exists and the fact it protects customers from price increases
• Flexibility: Build in compassion. Offer exceptions in emergencies and reward customer loyalty
• Tone and Messaging: Frame deposits as part of a quality, fair service—not as a punishment or a penalty
• Expectation-setting: Communicate policies in customer-friendly language, with empathy, from the outset
Ultimately, deposits are a litmus test in the customer journey. They show whether a brand is prioritising convenience—or connection.
So, what’s the takeaway for businesses? Don’t just implement a policy—design an experience.
The cost-of-living crisis is testing every relationship. Customers are choosing carefully where they spend their time and money. Booking deposits, when managed well, can become a powerful way to show your customers that you’re protecting not just your business—but them too.
Don’t just think about what a deposit does—think about what it says.
Because when your customers know you’ve got their back, they’ll have yours.
Find out how we can help you with your customer experience by contacting us now. We’re experts at this.
The Harris Poll UK, A Stagwell Company, is a leading market research company that provides some of the UK’s best-loved brands with game-changing insights. We utilise a combination of proprietary software and advisory services to deliver data insights via custom service models. We help our clients make informed decisions based on our in-depth industry expertise and our continual exploration of evolving consumer needs and priorities. We know that when a company’s Business Strategy and Customer Strategy are one and the same, their brand and their employees are better placed to succeed.