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News Release from: Retail Eyes | Subject: Mystery shopping
Edited by the Marketingservicestalk Editorial
Team on 03 December 2007
Mystery shopping puts you on the inside
track
Retail Eyes Chief Exceutive Tim Ogle discusses how new developments in the way mystery shopping is conducted are giving companies real insight into customers' perceptions of their brands.
It has always been difficult for retailers to know how their customers really feel about their levels of customer service and overall brand perceptions of customers Retailers have tried everything from comment cards to suggestion boxes to secretly observing shoppers
This article was originally published on Marketingservicestalk on 5 Nov 2007 at 8.00am (UK)
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One of the most popular, and most effective, techniques of auditing locations and evaluating customer service for decades has been mystery shopping.
Recent developments in mystery shopping techniques are providing even more insight for marketers.
This is becoming even more important with competition growing both from other retailers as well as the internet, and marketers for retailers both online and off are realising that a customer's purchasing experience is a key driver in getting them to return and recommend.
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Some mystery shopping programmes in the past have provided little insight and not provided it in a timely manner.
For example, it is important for a mystery shopping programme not only to give detailed feedback, but to provide it in a timely manner.
If there is a problem with a four-week promotion, but the marketing department does not receive any feedback from mystery shoppers for four to eight weeks, then problems that could be addressed immediately will not be - and by the time the information is received it will be too late to improve the promotion.
In response to problems such as this, the whole mystery shopping sector is currently undergoing a major shift.
Some companies now are beginning to take a different approach to this type of market research.
These companies are using web-based systems, meaning that after completing a site visit the mystery shopper fills in an online questionnaire, including both multiple choice and open response questions, which is customised to the aims of that company.
Feedback is then reviewed by the mystery shopping company, and complete reports sent to the client.
A few have even gone one step further.
Unlike traditional mystery shopping companies, they have developed a genuine live and real time system that does not require pages to be manually edited.
It allows marketers to get specific information about the performance at the top line through to each location across the estate at the click of a button.
Additionally, copies of every report are sent directly to the individual store locations that were visited, allowing employees to see the feedback themselves.
Reporting options for viewing the information from mystery shoppers are varied.
Traditionally, mystery shopping companies provided information in a restricted number of formats and charged an additional sum to compile anything but the most basic report.
This could take a week or longer to deliver depending on the format sought.
New web-based systems can show the same information in dozens of different formats and compare information gathered from mystery shopping, exit interviews, surveys, and other research done by the mystery shopping company.
The newest systems can now even add in additional data not gathered by the mystery shopping company for trend comparisons.
For example, a gastro pub operator could compare customer satisfaction levels from mystery shopping to reports from a food quality inspector and to a revenue stream chart simultaneously.
Another example would be comparing customer opinions of store appearance taken from mystery shopping reports to spend on in-store marketing.
This is invaluable information for any marketing department.
Another change is that this new technology allows a focus on what is happening on the shop floor to give complete all-around insight.
The data obtained under this system is far more extensive than that produced by traditional research.
The analyses used in these programmes can cover everything from opinions about in-store marketing material to how customers felt about their experience to performance audits in terms of cleanliness, time spent queuing, etc.
Additionally, a good mystery shopping company will work with individual stores that need to focus on improving their performance in any area and assist in developing improvement plans.
Examples of strategies for improving service have been to focus on the lowest 10 per cent scoring locations in a group or region and work with the staff and improve their understanding of how they can give their customers a better experience and better represent the values of their brand.
This will often be re-enforced by implementing incentive programmes as mentioned above and retraining individual employees.
Programmes with this approach have shown incredible results.
Clients have seen customer loyalty increases of up to 5 per cent, staff attrition reductions of up to 7 per cent, like-for-like sales increases of up to 4 per cent, improved staff morale, and a significant rise in awareness of special offers and up-selling.
The advantages of this approach towards mystery shopping are staggering, and more and more retailers with their customer service components are realising that the benefits are too good to pass up.
This is leading to them flocking in hordes to these companies that are showing true technological innovation.
And there are other new technologies in this field as well.
Mystery shoppers will be able to provide truly instant feedback by completing questionnaires onsite via mobile phones and wireless-enabled PDAs.
Reports will be integrated into EPOS systems meaning customer facing staff will receive feedback and positive action points at the point of sale.
Finally marketers and other management can view reports over RSS feeds on Blackberrys and Windows Mobile phones.
Technology is allowing marketing teams to gather and view data in a way they have been unable to do before.
Quick response times and detailed information are leading to a revolution in market research.
Mystery shoppers now look at more than just checking a box 'yes' or 'no', and the data they gather is considered not by itself, but in concert with a host of other items.
They are providing real insight into their experience as a customer, which is giving those smart enough to take advantage of it a true competitive edge in a difficult marketplace.
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