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Do No-Show Fees Really Reduce No-Shows?

Lots of businesses have no-show or late cancellation fees for their appointments. But do they really reduce no-shows? The short answer is yes, but at what cost? Adding no-show fees does cut down on the no-shows but it can be offputting to customers and negatively affect the customer relationship.

A study shows that having a no-show policy does in fact reduce no-shows by about 10%.  One thing to consider is how the policy can negatively affect your relationship with the customer. Ultimately the best thing to do is reduce no-shows with a variety of tactics.

While having a no-show policy is important it is also important to keep the customer relationship in mind when enforcing it and focus more on reducing no-shows than leaning on the policy. There are a variety of ways to reduce no-shows, here is another post I have on three effective ways to reduce no-shows. At a high level you can do this by:

  1. Creating a robust reminders system
  2. Scheduling appointments in the near term
  3. Deal with repeat offenders

Using those above techniques you can reduce no-shows without having to charge customers fees for missing their appointments!

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