It's not just you. The rise of digital tipping systems – from point-of-sale devices held by employees to countertop screens that clearly display your selection – is changing the dynamics of tipping, often in ways that make customers feel scrutinized., we wanted to find out how customers respond to this sort of 'tip surveillance.' So we conducted a field study analyzing 36,000 transactions and did four controlled experiments with more than 1,100 participants.
We compared tipping setups with less privacy – such as when firms use handheld payment systems, when employees are facing customers, and when apps immediately show tips to employees – with setups with more privacy, such as countertop payment systems, employees who face away from customers, and apps that disclose tips only after the service.: High levels of surveillance are bad for business. Customers who felt watched while tipping were less likely to make a return visit or recommend a business.
For companies, striking the right balance between giving customers control and fostering generosity is crucial. A business that trains its employees to give customers privacy to tip – and makes sure to pay those employees fairly, so they don't need to pressure customers in the first place – will likely develop a better reputation and a more loyal customer base.debate how to best integrate digital tipping into our world, our research shows the importance of thinking holistically.
More broadly, customers, workers, businesses and society may want to consider how to create a system of tipping that protects workers' rights and dignity while guaranteeing fair pay, and that allows customers and business owners to reward employees