Menu
Signing and tipping on screen, also known as digital tipping, can increase tips for businesses by leveraging technology to make the process more user-friendly, convenient, and socially influencing. Here are some reasons why digital tipping can lead to higher tips:
1) Suggested tip amounts:
Digital tipping interfaces often provide suggested tip percentages or amounts, making it easier for customers to calculate tips. This can lead to customers selecting a higher suggested amount rather than figuring out their own tip.
2) Social pressure:
When customers sign and tip on a screen in front of the employee or cashier, they may feel a subtle social pressure to leave a more generous tip. This phenomenon, sometimes referred to as the "guilt factor," can lead to increased tipping.
3) Convenience:
Digital tipping simplifies the process of adding a tip to a transaction. With just a few taps, customers can quickly and easily add a tip, which can result in more frequent and larger tips.
4) Customization:
Some digital tipping systems allow businesses to customize the tipping interface to encourage higher tips. For example, businesses can use personalized messaging, display tip percentages in an appealing manner, or show a progress bar towards a tipping goal.
While specific statistical data varies across studies and industries, research has shown that digital tipping can increase the average tip amount compared to traditional methods. For example, a study conducted by Square, a popular POS system provider, found that customers using their platform tipped 37% more often when presented with a digital tipping screen compared to cash tips. In addition, the same study found that digital tipping led to a 20-40% increase in the average tip amount.
These results, however, should be taken with caution as they are specific to Square's platform and may not apply universally. The impact of digital tipping on your business will depend on various factors, such as your customer base, industry, and the specific digital tipping interface you implement. Nonetheless, incorporating digital tipping can create a more user-friendly and convenient tipping experience, which has the potential to increase tip amounts for your business.
