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What is mystery shopping?
 Mystery Shopping is the practice of using

trained “shoppers” to anonymously evaluate
customer service operations, employee
integrity, and product quality.
 Getting trained people to act as customers to
experience a defined set of processes and
report back on the results.
When was it developed?
 Research tells us that it was a technique originally used by

private investigators to prevent internal theft at banks and
retail stores.
 During the 1940’s, Wilmark started using the term
“mystery shopping” to describe the process of anonymously
evaluating customer service.
 The industry slowly gained popularity throughout the
1970’s and 1980’s.
 The industry slowly gained popularity throughout the
1970’s and 1980’s.
Who is a mystery shopper?
 Person hired by a market research firm or a

manufacturer to visit retail stores, posing as a casual
shopper to collect information about the stores'
display, prices, and quality of their sales staff
 The hired person will be trained.
How mystery shopping is implemented?
 Anonymous persons are used as mystery guests.
 The mystery guest is well trained and uses a
predefined checklist.
 The mystery guest behaves like a normal customer.
 After the visit to the service point the checklist is
filled in and an evaluation report is documented.
 The evaluation report and the scores on the

checklist are used for feedback.
Purpose of mystery shopping
 Mystery shopping can be used for various
purposes.
 Most of the time the goal is to measure the quality
of the service delivery to the customer.

 Mystery guest is also used to visit not only the own
service locations but also locations of competitors.
 Measuring effectiveness of (training) programmes.

 Testing if employees treat all people in the same
way, or testing against discrimination.
Benefits of mystery shopping.
 Reports make very clear what is going wrong.
 Training programmes can be improved.

 Improvement activities can be focused on issues that

are important for the customer.
 Good behavior of employees can be rewarded.
Importance of customer satisfaction.
 Research reveals that - 26 out of 27 dissatisfied customers

of goods with a relative low price, don’t tell their supplier
about their dissatisfaction, however, 63% will never buy
again.
 27% of the buyers of expensive products will not complaint,

but 41% will not come back.
 37% of dissatisfied customers of expensive services do not

complaint, however, 50% of the dissatisfied customers will
not come back.
Customer satisfaction is important because…
 Satisfied customers buy more and become loyal.
 Satisfied customers buy additional products and services.
 Satisfied customers support positive word of mouth.
 Satisfied customers pay less attention to advertisements of

competitors.
 Satisfied customers deliver more ideas and suggestions.
 It costs 5-6 times more to acquire a new customer than to
retain an existing customer.
 On average, one unhappy customer will tell 8-16 other
people of their bad experience with service.
Story of Indian King.
After effect of dissatisfaction.
Stages of mystery shopping.
 Personal visit.
 Telephone Shopping.

 Personal visit or Demo(If required)
 Reporting.
Benefits for mystery shopper…
 Monetary benefits.

 Practical Exposure.
Tips to be a good Mystery Shopper
 Be Anonymous.
 Read your instructions.
 Fill out the reports on time.
 Give all the details.

 Only Report, don't comment.
 Commitment.
 Enjoy.
Queries ???
Thank you

Presented By
- R L N Simha
DSCE (DOMS)

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mystery shopping

  • 1.
  • 2. What is mystery shopping?  Mystery Shopping is the practice of using trained “shoppers” to anonymously evaluate customer service operations, employee integrity, and product quality.  Getting trained people to act as customers to experience a defined set of processes and report back on the results.
  • 3. When was it developed?  Research tells us that it was a technique originally used by private investigators to prevent internal theft at banks and retail stores.  During the 1940’s, Wilmark started using the term “mystery shopping” to describe the process of anonymously evaluating customer service.  The industry slowly gained popularity throughout the 1970’s and 1980’s.  The industry slowly gained popularity throughout the 1970’s and 1980’s.
  • 4. Who is a mystery shopper?  Person hired by a market research firm or a manufacturer to visit retail stores, posing as a casual shopper to collect information about the stores' display, prices, and quality of their sales staff  The hired person will be trained.
  • 5. How mystery shopping is implemented?  Anonymous persons are used as mystery guests.  The mystery guest is well trained and uses a predefined checklist.  The mystery guest behaves like a normal customer.  After the visit to the service point the checklist is filled in and an evaluation report is documented.  The evaluation report and the scores on the checklist are used for feedback.
  • 6. Purpose of mystery shopping  Mystery shopping can be used for various purposes.  Most of the time the goal is to measure the quality of the service delivery to the customer.  Mystery guest is also used to visit not only the own service locations but also locations of competitors.  Measuring effectiveness of (training) programmes.  Testing if employees treat all people in the same way, or testing against discrimination.
  • 7. Benefits of mystery shopping.  Reports make very clear what is going wrong.  Training programmes can be improved.  Improvement activities can be focused on issues that are important for the customer.  Good behavior of employees can be rewarded.
  • 8. Importance of customer satisfaction.  Research reveals that - 26 out of 27 dissatisfied customers of goods with a relative low price, don’t tell their supplier about their dissatisfaction, however, 63% will never buy again.  27% of the buyers of expensive products will not complaint, but 41% will not come back.  37% of dissatisfied customers of expensive services do not complaint, however, 50% of the dissatisfied customers will not come back.
  • 9. Customer satisfaction is important because…  Satisfied customers buy more and become loyal.  Satisfied customers buy additional products and services.  Satisfied customers support positive word of mouth.  Satisfied customers pay less attention to advertisements of competitors.  Satisfied customers deliver more ideas and suggestions.  It costs 5-6 times more to acquire a new customer than to retain an existing customer.  On average, one unhappy customer will tell 8-16 other people of their bad experience with service.
  • 11.
  • 12. After effect of dissatisfaction.
  • 13. Stages of mystery shopping.  Personal visit.  Telephone Shopping.  Personal visit or Demo(If required)  Reporting.
  • 14. Benefits for mystery shopper…  Monetary benefits.  Practical Exposure.
  • 15. Tips to be a good Mystery Shopper  Be Anonymous.  Read your instructions.  Fill out the reports on time.  Give all the details.  Only Report, don't comment.  Commitment.  Enjoy.
  • 17. Thank you Presented By - R L N Simha DSCE (DOMS)