Mystery shopping or secret shopping involves anonymously evaluating customer service by posing as customers. Secret shoppers visit stores, restaurants, hotels and provide feedback on their experiences. Their reports help businesses benchmark customer satisfaction, identify areas for improvement, and ensure employees provide quality service. Secret shopping evaluates factors like employee courtesy, timeliness, issue resolution and communication which research shows are important for customer retention and business growth. Businesses use secret shopping to objectively measure the customer experience and ensure customer expectations are being met.
1. Secret Shopping
Posted by admin On June 22, 2007 3:39 AM
Mystery Shopping
Mystery shopping is a tool used by market research companies, retail stores, restaurants, hotels and many
industries as a tool to measure the quality of products and/or services. Mystery shopping, or secret shopping,
began in the 1940?s as a mechanism to measure employee integrity.
Secret shopping is also known as: mystery shopping, experience evaluation, mystery customers, spotters, anonymous audits, virtual
customers, employee evaluations, performance audits, telephone checks and fulfillment assessments.
The concept of mystery shopping is centered on the idea that the customer?s perspective is important to the success of a business.
In order to get an unbiased opinion of a company?s service, secret shoppers anonymously pose as customers and later provide
feedback on their experiences and how satisfactory the product was. Companies may use this information gained from secret
shopping to benchmark their customer satisfaction rates and find ways to improve the customer?s experience.
The purpose behind the concept of secret shopping is to allow businesses to gain improved customer insight into how the customer
service related functions of their business are performing, and utilize the information gathered as part of performance management
and service improvement initiatives.
Customer service has become a top priority for many sectors of businesses, especially restaurants, hotels and retail businesses.
Customers often shop for product and compare two or more businesses before making a major purchase. With so much competition,
usually geographically within a block or two of each other, it is imperative for businesses to out perform their competitors by focusing
on the customer?s experience. How employees look, their actions, how many times they smile, how often they offer assistance- every
little detail is constantly scrutinized by the customer. These businesses thrive on keeping their customers happy. Mystery shopping is
a valuable tool that not only ensures the customer is happy; secret shopping keeps employees accountable and maintains that the
bottom line of any business is profitable.
According to a recent US and World report that focused on lost customers by major companies, the report found that of the customers
that left:14% left a business for better product, 9% went elsewhere for a cheaper product and 68% left because of poor service or the
poor attitude of employees within the business. This study clearly demonstrates the significance of service quality and product quality.
2. In the service industry, it is not enough if the product meets the functional requirements of the customer. Businesses must also meet
certain other customer expectations such as desirable behavior and a pleasant attitude of the person delivering the service. The
customer?s satisfaction is the combination of product, environment and behavior/attitude. In today?s economy, it is essential to
address what enables the customer?s satisfaction in order to see healthy business growth with the utmost importance given to
measuring technical processes, product quality and customer service .
Secret shopping assesses the performance of employees and addresses conformance to the standard set by an individual company
and within the industry. Mystery shopping provides feedback on behavioral aspects of service and usually deals within these areas
which have been indicated by research publications to enable growth for a company.
• Τηε ρεσπονσιϖενεσσ ορ ρεαδινεσσ οφ αν εµπλοψεε το προϖιδε σερϖιχε. Χυστοµερσ ωαντ το φεελ τηατ ηελπ ισ αϖαιλαβλε
ωηεν τηεψ ηαϖε θυεστιονσ ορ νεεδ γυιδανχε ιν χηοοσινγ βετωεεν σιµιλαρ προδυχτσ.
• Τηε λεϖελ οφ χουρτεσψ, ρεσπεχτ ανδ φριενδλινεσσ οφ περσοννελ ιν χονταχτ ωιτη χυστοµερσ. Χυστοµερσ σηουλδ φεελ
αππρεχιατεδ ανδ φεελ τηατ τηε εµπλοψεε τηεψ αρε ιν χονταχτ ωιτη ισ σινχερε.
• Τηε τιµελινεσσ συχη ασ δελιϖερινγ προδυχτ ον τιµε ανδ αλσο φιρστ χονταχτ ρεσολυτιον. Χυστοµερσ σηουλδ βε γρεετεδ ανδ
οφφερεδ ασσιστανχε ωιτηιν α φεω σεχονδσ οφ εντερινγ α βυσινεσσ. Σερϖιχε ανδ προδυχτ σηουλδ αλσο βε δελιϖερεδ προµπτλψ ανδ
ον τιµε, ιφ νοτ τακεν βψ τηε χυστοµερ διρεχτλψ αφτερ πυρχηασε.
• Τηε χοµπλετε ρεσολυτιον, οτηερωισε κνοων ασ λιστενινγ το τηε χυστοµερσ. Τηε χυστοµερ σηουλδ νοτ βε ταλκεδ οϖερ.
Εµπλοψεεσ σηουλδ ανσωερ τηειρ θυεστιονσ ορ σεεκ αν ανσωερ το τηε θυεστιον.
• Τηατ τηερε ισ γοοδ χοµµυνιχατιον ανδ εµπατηψ, ωηεν αππροπριατε. Σπεακινγ ιν τηε χυστοµερ?σ λανγυαγε ισ αλσο δεσιραβλε,
εσπεχιαλλψ ωηεν τηε λανγυαγε ισ τηατ οτηερ τηαν τηε µοστ χοµµον λανγυαγε το τηε αρεα.
• Χρεδιβιλιτψ ισ ιµπορταντ το ανψ ινδυστρψ ανδ βυσινεσσ. Τακινγ οωνερσηιπ φορ ερρορσ ανδ αλσο ρεσολϖινγ χοµπλαιντσ αρε
ιµπορταντ ωηεν προϖιδινγ εξχελλεντ χυστοµερ σερϖιχε.
If a customer?s experience matches the customer?s expectations that will lead to customer satisfaction. When a customer?s
experience exceeds their expectations that can lead to customer delight and the customer will be more loyal to that business. The
goal of secret shopping is to highlight the areas in which a business or individual employee meets these areas and also the areas in
which the business or individual employee can improve in order to meet these goals.
Customer retention and loyalty results from meeting and exceeding the customer?s expectations. The focus should not be to simply
meet the goals, but to exceed them. Customer satisfaction and furthermore, customer retention demands the continuous
improvement in an organization?s capability to examine its processes, environment and attitude. A business with good customer
satisfaction and customer retention can not stop monitoring and measuring employee performance and the level of customer
satisfaction or it would surely diminish. Secret shopping is a way to guarantee an ongoing evaluation of customer satisfaction.
Studies have also shown that a business can increase their profits by almost 100% by retaining 15% more of their customers than
their competitor retains. This is because the cost of acquiring new customers is usually higher than the costs associated with retaining
customers. Firms and businesses with loyal, long term customers can financially out perform competitors with higher customer
turnover.
3. Focusing solely on attracting new customers and neglecting customer retention is much like adding water to a leaking bucket. Brining
new customers in the door while former customers walk through the door of your competitor can harm your bottom line. This is why
management must focus on employee behaviors, service issues and the customer?s experience in order to establish a differentiation
between the company?s competitors.
The level and quality of service a business delivers to its customers is vital to the company?s success. The customer?s total
experience with a business and the employees within that business dictate whether the business will succeed or fail, whether it will be
profitable or not. Simply having expectations about what sort of experience customers should have in not enough. Businesses must
measure and inspect. Objective, anonymous, third party assessments of the customer?s experience will provide a business the
information needed to ensure the expectations for the customer?s experience are carried out in reality.
Customer service happens; good or bad, it continually happens. It is clear that how service happens can be controlled by managing
the areas discussed and that the customer?s perspective is everything. Secret shopping helps capture the consistency and level at
which a business provides service. Mystery shopping has one objective in mind: to rate the customer experience.
Once a business has contracted a secret shopping company, the mystery shopping is performed randomly from a third party. Tools
used for mystery shopping assessments can range from simple questionnaires to complete audio and video recordings to detailed
reports with complete employee background history.
The internet has provided an entirely new outlook on the secret shopping industry as many secret shoppers shop online. Video and
audio recordings are also more often shared via the internet and the report, or evaluation, of the mystery shopper?s experience can
be sent through the internet. Many secret shopping companies are completely administered through the internet. This allows the
mystery shopper to use the internet to register for participation, find secret shopping jobs and even receive payment. The internet also
allows the corporation or business being shopped to receive the results in a timelier manner than previous methods.
Secret shopping may be performed by physically shopping at the company, shopping online and shopping on the telephone. The
avenue in which the shop is performed also affects the degree and points that can be measures by the shopper. For example, a
secret shopper that it physically present will be able to judge the cleanliness of a business as well as how long it took to be greeted. A
secret shopper conducting as mystery shop online will be able to assess the ease and user-friendliness of the site and also how
satisfactory delivery and response times were. A mystery shopper conducting an assessment over the phone will be able to measure
behaviors and attitudes and how knowledgeable the employee. These various methods allow nearly any business in the service
industry a way to know what really goes on between the customer and employee. Each method provides its own benefit over the
other and oftentimes, these methods can be combined to provide the widest view of the customer?s experience.
When a client company comes on board with a secret shopping provider, a survey model is usually drawn up and agreed to that
defines what information and improvement factors the client company wishes to measure as part of the mystery shopping process.
Common points of measurement and information provided by the secret shopping service are:
• Τηε δατε ανδ τιµε οφ τηε ϖισιτ ορ πηονε χαλλ
4. • Τηε ναµε οφ τηε στορε εµπλοψεε
• Τηε νυµβερ οφ εµπλοψεεσ ιν τηε στορε, ορ δεσιγνατεδ δεπαρτµεντ, υπον εντερινγ
• Ηοω λονγ ιτ τακεσ βεφορε τηε σεχρετ σηοππερ ισ γρεετεδ
• Ωηετηερ ορ νοτ τηε γρεετινγ ισ φριενδλψ
• Τηε θυεστιονσ ασκεδ βψ τηε σεχρετ σηοππερ ιν ορδερ το ηελπ φινδ α συιταβλε προδυχτ
• Τηε εµπλοψεεσ ωιλλινγνεσσ ορ σινχεριτψ ιν ηελπινγ τηε σεχρετ σηοππερ
• Τηε τψπεσ οφ προδυχτσ σηοων το ορ δισχυσσεδ ωιτη τηε σεχρετ σηοππερ
• Ιφ ορ ηοω τηε εµπλοψεε αττεµπτεδ το χλοσε τηε σαλε
• Ωηετηερ ορ νοτ τηε εµπλοψεε ινϖιτεδ τηε σεχρετ σηοππερ βαχκ το τηε στορε
• Τηε χλεανλινεσσ οφ τηε στορε ανδ τηε στορε?σ ασσοχιατεσ (ωηεν χονδυχτινγ αν ιν περσον σηοπ)
• Τηε σπεεδ οφ σερϖιχε
• Χοµπλιανχε ωιτη χοµπανψ στανδαρδσ τηατ ρελατε το σερϖιχε, στορε αππεαρανχε (ωηεν αππλιχαβλε), ανδ βεηαϖιορ/
πρεσεντατιον.
Mystery shoppers are sometimes given specific target areas or a specific assignment. For example, if a restaurant wanted to monitor
the service they provide to customers with special needs, the secret shopper may pretend to have a peanut allergy, a secret shopper
in a retail store may ask specifically about financing options, a hotel secret shopper may as for certain services, etc. Secret shoppers
sometimes measure everything from the moment they drive onto the property of the client company all the way to the delivery of their
purchase. However, not all secret shops include a purchase.
Some secret shopping is intended to measure the sales techniques and presentation of the client company. Not all cases require a
purchase. In many instances, a secret shopper will enter a facility or pick up the phone and only inquire about a product or service.
Because the shopper does not intend to purchase the product or service, this also presents an opportunity to assess how strongly an
employee will try to close the sale. The shopper will submit the date to the secret shopping provider company. These measurements
provide the client company with valuable insight into how the customer perceives their service. The information gathered during the
secret shop is then analyzed before quantitative and qualitative statistical analysis reports. The data and reports are then returned to
the client company that will measure this information against the previously defined criteria or industry standard.
The most common venues to be mystery shopped are retail stores, hotels, restaurants, fast food chains, banks, gas stations, car
dealerships, apartments, health clubs, airlines and cruise lines. Even doctor?s offices are becoming game for mystery shopping, as
many patients cringe at the thought of waiting beyond their schedules appointment to see the doctor. Virtually any context in which
there is a customer/ employee interaction is open to mystery shopping . In the UK , mystery shopping is increasingly used to provide
feedback on customer services provided by local authorities and other non-profit organizations.
5. A 1994 survey indicated that fast food outlets consistently scored the lowest in customer satisfaction among several industries. Due to
this criticism, it is estimated that 75% of the 95 largest fast food chains now use a secret shopping program, up from just 45% five
years ago. There is no argument that today?s consumers expect the best price, top-notch products and superior customer service.
The secret shopping industry had an estimated value of nearly $600 million in the United States in 2004. In 2004 secret shopping
companies experienced an average growth of 12.2%. The report estimates that more than 8.1 million mystery shops were conducted
in 2004. Secret shopping is more embedded into company procedures in European regions, and similar reports are available.
Mystery shopping programs are valuable because:
• Μοστ χυστοµερσ ωηο ηαϖε υνπλεασαντ ανδ υνσατισφαχτορψ εξπεριενχεσ ωιλλ νοτ ραισε τηειρ χοµπλαιντ το τηε χοµπανψ.
Τηεψ ωιλλ νοτ ρετυρν.
• ∆ισσατισφιεδ χυστοµερσ αρε λικελψ το τελλ σεϖεραλ φριενδσ ανδ φαµιλψ αβουτ τηειρ υνπλεασαντ ενχουντερ. Ωηο ιν τυρν,
προβαβλψ αϖοιδ δοινγ βυσινεσσ ωιτη τηε οφφενδινγ χοµπανψ. Ωορδ οφ µουτη γρεατλψ αφφεχτσ τηε χρεδιβιλιτψ ανδ ρεπυτατιον οφ α
βυσινεσσ, ωηετηερ νεγατιϖελψ ορ ποσιτιϖελψ.
o It should be noted that negative word of mouth travels more quickly and farther than positive word of mouth. Therefore, it is all
the more important to guarantee a positive customer experience.
• Τηε υσε οφ σεχρετ σηοππινγ το προϖιδε ινδεπενδεντ ανδ ιµπαρτιαλ φεεδβαχκ ρεδυχεσ ανψ περχεπτιον οφ φαϖοριτισµ ιν
ινχεντιϖε προγραµσ. Σεχρετ σηοππινγ χαν αλσο αλλοω τηε εµπλοψεε το φεελ µορε χοµφορταβλε ιν τηε ωορκπλαχε ιφ τηεψ δον?τ
ηεαρ τηατ τηε µαναγεµεντ ισ σχρυτινιζινγ τηειρ εϖερψ µοϖε βεχαυσε αν ανονψµουσ, τηιρδ παρτψ ωιλλ προϖιδε τηε ασσεσσµεντ.
• Σεχρετ σηοππινγ ηελπσ δετερµινε ωηετηερ χυστοµερ?σ αχτυαλ εξπεριενχεσ αρε ιντενδεδ. Μψστερψ σηοππινγ ρεϖεαλσ
ωηετηερ ορ νοτ γοοδ χυστοµερ εξπεριενχεσ αρε χονσιστεντ ανδ ηοω τηεψ µαψ ϖαρψ. Τηισ αλλοωσ τηε χλιεντ χοµπανψ το
πυρποσελψ σετ ιν µοτιον α πλαν οφ αχτιον τηατ χαν ηελπ ινχρεασε τηε χονσιστενχψ οφ ποσιτιϖε χυστοµερ εξπεριενχεσ.
• Σεχρετ σηοππινγ προγραµσ χαν ιδεντιφψ αρεασ οφ τραινινγ ωηιχη νεεδ ιµπροϖεµεντ ανδ χαν ιδεντιφψ αρεασ οφ τραινινγ τηατ
αρε ωορκινγ παρτιχυλαρλψ ωελλ. Κνοωινγ ωηατ τηε συχχεσσεσ αρε ωιλλ ηελπ κεεπ µοραλε υπ ωηιλε α βυσινεσσ φοχυσεσ ον
ιµπροϖινγ τηε αρεασ τηατ αρε συβστανδαρδ.
As discussed previously, there are several types of secret shopping . Services offered by secret shopping providers may include:
• 24−Ηουρ Ρεπορτινγ: Ρεπορτσ/ ρεσυλτσ αρε δελιϖερεδ ορ αχχεσσιβλε το α χλιεντ ωιτηιν 24 ηουρσ οφ τηε στορε ϖισιτ/ πηονε
χαλλ/ ιντερνετ ϖισιτ. (48 ηουρ ανδ 72 ηουρ ρεπορτινγ φολλοω τηε σαµε λογιχ.) Τηισ ισ τηε χλοσεστ φορµ οφ ρεαλ τιµε σεχρετ
σηοππινγ αϖαιλαβλε ανδ προϖιδεσ τηε φαστεστ ρεσυλτσ. Βεχαυσε οφ τιµεφραµε, τηε ρεσυλτσ αρε οφτεν νοτ ασ δεταιλεδ ασ σοµε
ρεπορτσ χαν βε γενερατεδ βυτ ρεθυιρε µορε τιµε.
• Αυδιο Ρεχορδεδ Σεχρετ Σηοπσ: Τηεσε αρε σεχρετ σηοπσ ιν ωηιχη σουνδ ισ ρεχορδεδ. Τηεψ χαν βε υσεδ φορ ειτηερ χυστοµερ
σερϖιχε ορ εµπλοψεε ιντεγριτψ ισσυεσ. Ρεχορδινγ πηονε χονϖερσατιονσ υνκνοωινγλψ το αλλ παρτιεσ ινϖολϖεδ ισ ρεστριχτεδ ιν
σοµε στατεσ.
• Χοµπετιτιϖε Σεχρετ Σηοπσ: Τηεσε αρε µψστερψ σηοπσ ιν ωηιχη α χλιεντ χοµπανψ χοντραχτσ τηε σεχρετ σηοππινγ χοµπανψ
το ϖισιτ τηε χοµπετιτορ ανδ ινφορµατιον ισ νοτεδ ον τηε σαµε συρϖεψ υσεδ βψ τηε χλιεντ χοµπανψ. Τηεσε σηοπσ αρε υσυαλλψ
ρεθυεστεδ το χοµπαρε χυστοµερ σερϖιχε ορ πριχινγ ωιτη α χοµπετιτορ.
• Χυστοµερ Σερϖιχε Εϖαλυατιον: Τηισ φορµ οφ σεχρετ σηοππινγ ισ τηε µοστ τψπιχαλ φορµ ιν ωηιχη α σεχρετ σηοππερ ποσεσ
7. ασ το τηε φοχυσ οφ τηε σηοπ, τηε χοντεντ ανδ ωορδινγ οφ τηε θυεστιονσ, τηε νυµβερ ανδ φρεθυενχψ οφ τηε σηοπσ, ρεπορτινγ
φορµατσ, ινχεντιϖε προγραµσ ανδ τηε υσε οφ τηε ινφορµατιον.
• Σπεχιφιχ Ινδιϖιδυαλ Εϖαλυατιονσ: Τηεσε αρε υσυαλλψ ιντεγριτψ ρελατεδ. Α σηοπ µαψ βε ρεθυεστεδ βψ α χλιεντ βεχαυσε
τηερε ισ α ρεασον το βελιεϖε τηατ προχεδυρεσ αρε νοτ βεινγ φολλοωεδ βψ α σπεχιφιχ εµπλοψεε.
• Τελεπηονε Περφορµανχε Εϖαλυατιον: Τηισ φορµ οφ σεχρετ σηοπ υτιλιζεσ α συρϖεψ το χοϖερτλψ εϖαλυατε τηε χοµπλιανχε
ωιτη τελεπηονε προχεδυρεσ οφ αν εµπλοψεε ορ χαλλ χεντερ. Τηεσε τψπεσ οφ σηοπσ µαψ αλσο βε περφορµεδ το εϖαλυατε τηε σαλεσ
περφορµανχε οφ τηε χλιεντ χοµπανψ.
• ςιδεο Ρεχορδεδ Σεχρετ Σηοπσ: Τηεσε αρε σηοπσ ιν ωηιχη ϖιδεο ισ ρεχορδεδ. Τηισ χουλδ βε υσεδ φορ ειτηερ χυστοµερ σερϖιχε
ορ ιντεγριτψ. ςιδεο ρεχορδεδ σεχρετ σηοπσ αρε ρεστριχτεδ βψ λαω ιν σοµε στατεσ.
Customer experience measurement should include the objective experience data that secret shopping provides. Mystery shopping
records a snapshot of the way in which customers are engaged by the business. Specific measurable items are assessed to provide
an objective look at the customer interaction. Mystery shopping can answer important questions a client company may have regarding
how long is takes for customers to be greeted and if the associates on the phone are friendly and represent the company well. It may
be valuable for a mystery shopping program to be augmented by customer satisfaction surveys, interactive voice response (IVR), and
other means of measuring how customers feel about a business. However, customer satisfaction measurements such as surveys,
should not by used exclusively to guide customer experience management programs because they are not objective. While gathering
information about the attitudes of customers can be important, customer feedback is, by nature, subjective and can be influenced by
emotion. The objectivity that mystery shopping provides is critical to any effective customer experience management program.
Bottom line performance can be influenced, in either direction, by many factors. As reported and discussed, customers use the
behaviors and attitudes of a company and its employee to determine how satisfied they are and if they will return. So quantifying the
financial return on investment of any new incentive can be difficult. The behavioral return on investment in secret shopping programs
can be readily measured, though, provided the results of the mystery shopping program are effectively used to change employee
behavior. For example, if a secret shopping report reveals that fifty percent of the time, employees fail to thank the customer before
ending a phone conversation or before the customer exits the building, the company may take specific steps to ensure that
employees understand what the expectations are and that employees should thanks each customer. Subsequent secret shopping
may later reveal an improvement in this area. The financial value of that improvement may be hard to gage, but consider this: a
customer who felt appreciated and valued is far more likely to do business with a company that a customer who is underappreciated
or ignored. Acknowledging customers as they enter and exit your building has also been proven to improve loss prevention and
reduce the rate of theft. Both of these factors should be weighed when determining the worth or value of a mystery shopping program.
Mystery shopping has proven to be an asset for those wishing to assess heir staff while off location. Insightful feedback from the
secret shopper can not only identify opportunities for improvement, but also highlight trends based on the data collected from the
secret shopper?s evaluation.
While many companies allocate funds towards training their employees, very few monitor their program?s effectiveness afterwards. In
addition to improving customer satisfaction and customer retention, and as a result, the bottom line, secret shopping also validates
that money invested in employee training is worthwhile and productive.
Debate has arisen about the effectiveness of mystery shopping. Those who oppose the practice suggest that an individual who knows
nothing about a particular workplace has no business analyzing it. This ideal might be counteracted by arguing that customers enter
and exit a business without becoming familiar with its inner workings and yet, they still leave with an opinion about that business- an
8. opinion that will affect that business? bottom line in one way or another. Secret shopping faces opposition in that some managers feel
there could be an explanation for why a certain type of poor service was provided. However, studies show that customers expect a
high level of service, despite whatever obstacle the company may be facing. Perhaps a mystery shopper is the answer for some, but
not all. Meanwhile, those who prefer a tangible report revealing the way customers generally feel when they leave your establishment,
can find it in an unbiased, honest evaluation from a mystery shopper.
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