The tipping point: how mobile POS technology can improve customer experience and employee wages

When implementing new technology, your customers' experience of that technology is crucial to staying in the game. If patrons are confused, you are ultimately failing to provide good service and risk losing business. Software Advice research shows a promising outlook for mobile POS and customer experience.

Customers are split on how difficult they perceive mobile POS technology, particularly the iPad POS, to be. Most (51 percent) do not perceive the systems as difficult, the study said. A small percentage (one percent) think iPad POS will be "very difficult," and one percent "extremely difficult." The largest percentage to perceive any difficulty came in at 38 percent of participants perceiving only "minimal difficulty" using the system.

Customers have preferences for how tipping should be completed on mobile POS, according to the study. The data suggest 66 percent "strongly prefer" to input the tip themselves on mobile POS systems, whereas only three percent "strongly prefer" the server to input the tip.

Perhaps one of the not-so-comfortable aspects of this tipping technology is the "opt out" button that allows customers to forego tipping. The study shows that even if an opt out button were included on an iPad, 50 percent "would tip either way," while only two percent "wouldn't tip either way." Interestingly, an opt out option actually increases the chances of a customer tipping:

"One nuance of these iPad POS systems is the 'no tip' buttons customers must select to opt out of leaving a tip. I think the implications of these are huge," said Guinn. "Now instead of just not tipping, customers have to select a button on a screen to not tip. Mind you, this button is typically smaller and less advantageous looking than the suggested tip buttons. But there's an interesting question that presents itself at this moment: do you just not tip, or would you feel guilty for doing so? People have to expend energy on selecting a "no tip" button rather than not tipping. We found that these buttons would increase the likelihood to tip of 29 percent of our respondents. However, commentary from a consumer-behavior researchers indicate this number is probably much higher.

"The implications of the opt-out button are far more prevalent in places like coffee shops, bakeries, counter-service delis or food trucks, where the person taking your card is standing right in front of you. People might feel awkward pressing a 'no tip' button with theserver looking right at them, waiting. There's an undeniable social pressure in that scenario to leave a tip."

Tipping conditions

While social pressure may increase tipping on iPads, other conditions such as type of restaurant, gender, proximity of server, and server input vs. individual input impact tipping habits.

Casual dining is by far the most preferred restaurant type for using iPad POS to tip, at 70 percent. Surprisingly, 50 percent indicate they prefer to use iPad POS for tipping at fast casuals, where tipping is often not a usual practice. And a significant number, almost 30 percent, prefer using an iPad for tipping at QSRs, where tipping is almost unheard of.

When it comes to a server's presence, most respondents in the study (55 percent) indicate they would "tip about the same" if a server or cashier input the tip, with only two percent tipping "much more."

By gender, however, 30 percent of female respondents say they would tip "somewhat more" if a server input the tip as opposed to only 18 percent of males. While who inputs the tip matters, proximity is more likely to increase tipping habits:

"Our data indicates a close proximity by a server or cashier during the payment and tipping process can really increase tips," said Guinn. "We found that 41 percent of customers

The tipping point

An infographic by Consolidated Foodservice shows that without considering mobile POS technology, tipping differs by age, gender, geography and type of service. According to the data, men tip "slightly more than women," at 15.7 percent and 14.6 percent, respectively. The biggest percentage of customers tipping 15-20 percent for service are those age 65 and older, at 84 percent. The state with patrons tipping the highest percentage is Montana, at 16.3 percent.

The research also indicates that nearly everyone (99.5 percent) tips waiters and tips for delivery services (95 percent).

Since most customers are willing to tip servers, adopting mobile POS technology in fast casual and QSR restaurants can be a way to increase the income of your employees, especially in a climate of rapidly changing policies about minimum wage. The research suggests that mobile POS can tip your brand to the point of more money for both your business and your employees, a win-win.