Headline : All this pressure to tip is scaring customers away

Read more from the original article on here at qz.com.

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Have you ever hesitated at the register, uncomfortable as an employee watched you choose a tip? 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.

As marketing professors who study digital tipping, 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.

Our results were clear: 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. While privacy often made customers feel more generous and in control of their decisions, feeling scrutinized led to resentment and reduced loyalty.

Read more from the original article on here at qz.com.

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