Few personal finance topics get people fired up as much as tipping. But as staunch as our personal tipping policies might appear, a new study has found the presence of emojis on a bill can increase how much we tip.
Yes, a simple happy face emoji can boost tips by over 30 per cent, in some contexts.
The researchers looked at the use of emojis in three tipping situations: a full-service restaurant with credit or debit payment, a food delivery app, and stopping at a chain restaurant to order takeout on the way home from work. Preselected tipping percentages were presented with accompanying emojis.
The 10-per-cent option was presented with a neutral face, while the options of 15, 18, 20 and 25 per cent were presented with progressively happier smiley faces. A sixth option of “other” was also available with a thinking emoji.
In the full-service restaurant, the presence of emojis on the payment terminal increased the average tip by 2.52 percentage points (from 22.86 per cent to 25.38 per cent), which is an 11-per-cent relative increase. In the food delivery app condition (which omitted the 25-per-cent preselected option), emojis raised the average tip to 16.11 per cent from 14.66 per cent, for a relative increase of 9.9 per cent. And in the takeout order condition, emojis at time of payment increased tips to an average 16.75 per cent from 12.61 per cent, a whopping relative increase of 32.8 per cent.
Researchers explained that emojis affect the emotional experience of the transaction in a way that promotes prosocial behaviours, such as tip amounts.
It would seem that the use of emojis is just an evolution of tools and techniques long practised to excise the highest amount of tips from consumers as possible.
Previous research confirms what we might suspect: When a server introduces themselves and uses our names when providing service, we tip more. When we get a gift with the check, such as a piece of chocolate or some candy, we tip more. When a hand-written thank you is on the bill when we receive it, we tip more. And when the bill is presented in a folder, we tip more. We tip even more if the folder is gold instead of black.
But there are other variables that affect the tips we leave that are independent of service, such as the weather and restaurant location.
With the gradual introduction of electronic payment terminals and apps, the ability to manipulate tipping behaviour has kicked into overdrive. Default tipping options seem to have increased faster than inflation. Being asked to tip before getting our food delivered in a quick-service environment, or worse, being asked to tip in a self-service, grab and go environment, has challenged the fundamental nature of tipping. Is it for good service or wage subsidy?
A lot of the tension around the state of tipping culture in 2024 stems from being manipulated to breach our personal tipping policies through various psychological and technological tools. For example, someone might have grown up with a personal policy wherein 10 per cent is the default and floor of their minimum tip, but then get presented with a terminal with three preselected options, the lowest being 15 per cent.
The expectation is that you’ll quickly press one of these options, but if you wanted to hold true to your 10-per-cent floor for what you deem to be low-quality service, you’ll additionally have to find the “other” option and then key in the percentage tip you want to leave. All while the recipient is standing over you. To avoid anxiety, many will violate their personal tipping policy in the moment.
To add to the frustration, an inordinate number of people might suggest that as prices have gone up, tips should increase as well and, as such, higher percentage options make sense. Aside from demonstrating a complete lack of understanding of how percentages work, the beliefs of others fuel the desire to avoid social disapproval.
Tipping was never solely about satisfaction of service received, but it used to be paramount. Now, all of the other factors that affect the tips we pay seem to dominate. Emojis, as the study shows, are the latest piece in this puzzle. They might seem like a friendly nudge, but their impact is tangible.
It’s a reminder that the symbols peppering our digital communications are more than fun – they are potent tools that can shape economic interactions in a way that’s anything but trivial.
Preet Banerjee is a consultant to the wealth management industry with a focus on commercial applications of behavioural finance research.
Preet Banerjee