Editor's note: Al Goldsmith is director of Virtual Customers research for Maritz Marketing Research Inc., St. Louis.
In today's competitive marketplace customer service is often the distinguishing factor among industry leaders. In addition to identifying the characteristics of excellent customer service, many companies have discovered (or re-discovered, as the case may be) a variety of measurement methods that track or monitor customer service provided by front-line employees. One such method that has been gaining popularity has actually been around for decades: mystery shopping.
There are several reasons for increased interest in mystery shopping:
- More than ever, retailers offering similar products know that excellent customer service is one of the best ways to increase sales. Excellent service can be encouraged and rewarded through mystery shopping.
- Reduction in middle-management/supervisory positions has forced companies to make greater use of outside organizations to monitor employee performance, particularly when they are dealing with customers and prospects.
- Retailers are always interested in finding out what their competition is doing, a service mystery shopping can provide.
- Today's retailers understand that unless a price war occurs between businesses, consumers are likely to frequent an establishment where the personnel are friendly and knowledgeable.
Limitations
Although mystery shopping can become a powerful customer listening post and a positive force within a business, management must realize certain limitations when selecting measurement or evaluation criteria.
- Criteria to be evaluated must be objective rather than subjective. Mystery shopper observations are limited to a choice of fixed alternatives.
- It is not feasible to conduct a mystery shopping program with the same number of interviews (facility visits) as a marketing research project which uses phone interviews or mail surveys.
- Mystery shopping is not an exact science. About 5 percent of mystery shoppers' evaluations will be questioned and/or appealed if the facility knows that a mystery shop has occurred.
Mystery shopping classifications
There are basically four variations on the mystery shopping concept. Each offers choices in the depth and type of information collected.
Level 1 - The mystery shopper conducts a mystery telephone call. Here, the mystery shopper calls the client location and evaluates the level of service received over the phone, following a scripted conversation.
Level 2 - The mystery shopper visits an establishment and makes a quick purchase; little or no customer-employee interaction is required. For example, in a Level 2 mystery shop, a mystery shopper purchases an item (e.g., gas, a hamburger, or a lottery ticket) and evaluates the transaction and image of the facility.
Level 3 - The mystery shopper visits an establishment and, using a script or scenario, initiates a conversation with a service and/or sales representative. Level 3 mystery shopping usually does not involve an actual purchase. Examples include discussing different cellular telephone packages with a sales representative, reviewing services provided during an oil change, etc.
Level 4 - The mystery shopper performs a visit that requires excellent communication skills and knowledge of the product. Discussing a home loan, the process for purchasing a new car or visiting apartment complexes serve as examples.
Factors affecting pricing
Besides the different pricing levels for mystery shopping, a company should consider the following when developing and/or planning a mystery shopping program.
- Method of evaluation - physical visit or telephone call.
- Geographic area to be covered - rural versus metro.
- Number/frequency of mystery shop visits and/or evaluations.
- Reporting requirements - types of reports, distribution method (i.e., fax, graphics, tabular, etc.)
Mystery shopping can bring managers at all levels and front-line employees in touch with customer needs and perspectives as seen through the eyes of trained professionals who experience the business first-hand. When implemented properly, mystery shopping can become a positive, motivating experience that rewards people for a job well done, identifies areas where training can improve customer service, and sheds light on unrecognized opportunities for increased sales.