How to Get Good Results from Mystery Shopping: The One Thing That’s Missing from Most Mystery Shopping Programmes.

August 19th, 2009

Stakeholder Buy-In! Without it your mystery shopping programme will go nowhere. If you are contemplating mystery shopping be certain to consult all stakeholders – most particularly front-line staff.

No desk-bound manager really knows the difficulties of working on the front-line. And yet many managers setting up and managing mystery shopping never get input from the very people who are expected to embrace the changes.

To get the best response from your mystery shopping programme do the following…

Ask current front-line staff for suggestions on design and implementation of your mystery shopping programme.
Inform new hires and new franchisees about mystery shopping at during the selection process.
Make full disclosure about mystery shopping in employment and franchise agreements.

Mystery Shopping: How to get good results. Do Rewards Programs Work?

July 28th, 2009

Should your mystery shopping program include rewards for good scores? Everyone responds to rewards – right? But is there actual proof that rewards actually work?

We would do well to turn to a recognised authority for an answer.

“Ultimate Rewards,” published by Harvard University Press is one such authority. In the Table of Contents we see the name of the famous management consultant Peter Drucker who penned one of the chapters. “Harvard” and “Drucker” provide reputation add credibility.

So what do the authors in this anthology actually say?

Some authors dismiss the notion that rewards are effective. Chapter titles like , “Asinine Attitude Toward Motivation”, “Why Incentive Plans can Never Work” and “Rethinking Rewards” transmit the opinion of the author even before we get into the substance of their argument.

Other authors assert that rewards work well and cite evidence to prove it, but they are critical of organisations that misuse or mismanage their rewards. These authors say that “rewards failure” is assured if organisations reward wrong things. They cite rewarding “tasks” and “behaviours” as wrong. Rewards for simply doing stuff doesn’t cut it. On the other hand success is more certain if organisations focus on objectives rather than tasks and on results rather than behaviours.

So where does this leave mystery shopping and rewards?

Mystery shopping measures such things as, “following up a sales lead” and “suggestive selling.” Following up a lead is a task and it’s a behaviour. Suggestive selling is a task and a behaviour. And that’s the problem. Mystery shopping is largely about tasks and behaviours.

The inescapable conclusion is that if we reward high scores or punish low mystery shopping scores we misuse and mismanage the very tool that can help us achieve the results we want.

Mystery shopping is a great servant, but a poor master. Make sure that it serves you well by rewarding results rather than scores.

Mystery Shopping for Retailers: The Top Benefit is Loss Prevention.

July 20th, 2009

A mystery shopping programme has many benefits for retailers, but to my way of thinking the top benefit is to provide actionable feedback on Loss Prevention.

There of course an immediate, obvious loss when stock is stolen, but there is a second, very common, less obvious type of loss. It’s the loss when customers walk out without being served. Not only is sales revenue lost, but also a proportion of location cost (rent) and marketing expense which brought the customer to the store in the first place.

Notwithstanding the use of electronic tags and store surveillance systems, thieves who are acknowledged are less likely to steal because they have been noticed. And of course the last thing a thief wants is prompt service. On the other hand honest customers do want to be acknowledged and served within a reasonable time.

Just yesterday morning one of our mystery shoppers roamed around a store for nine minutes without the staff showing any interest. One was playing around on a computer at the front counter; the other was fiddling with stock. Both were apparently oblivious to the shopper and the four customers who were there at the time.

Nine minutes. Plenty of time for a crook to steal. And more than enough time to annoy a waiting customer.

Acknowledgement and prompt service are two of the most effective weapons in both types of loss prevention. This means that, arguably the two most important measurements in a mystery shopping report are…

Time to acknowledge the mystery shopper and…
Time to serve the mystery shopper

In the current economic downturn, as shop stealing becomes more common and paying customers less common, it will pay to keep a close eye on your acknowledgement and service times.

Mystery Shopping or Customer Satisfaction Survey: Which is Right for You?

July 8th, 2009

There are two kinds of feedback: operational feedback and satisfaction/loyalty feedback. For operational feedback use mystery shopping. For satisfaction or loyalty feedback use customer surveys.

The question is not which one to use because they are two sides of the same coin. Both are needed. Customer surveys provide information about how customers feel about their experience, but provide little information about the process behind that experience. Mystery shopping on the other hand measures the processes that create the customer experience. The most important of these is the sales process.

Four Guidelines for Effective Mystery Shopping

July 2nd, 2009

For employees

Your employers have the right to use mystery shopping to to improve sales skills and protect their brand.

For Owners and Managers

If front-line staff “fail” a mystery shop, it is your failure. Who selected and trained them?

For Mystery Shopping Service Providers

Service providers must make their clients aware of the limitations of mystery shopping.

For Mystery Shoppers

Be accurate. Your mystery shopping observations will have repercussions for staff and management.

Why Mystery Shoppers are Needed. The Role of Women in Vehicle Purchasing.

June 2nd, 2009

In mystery shopping car dealerships I have lost count of the times sales people have ignored women shopping for a car if a male is not present.

How dumb is that?

Women comprise about half the population! Many have high earnings. And one way or another they have considerable influence over the other half!

A great example happened right in my own office. I had invited a couple of mystery shoppers in for a chat because they were not just mystery shopping, but actually buying a car.

The couple had been to one of our car customers looking for a 4WD to take around Australia. The sales person didn’t even offer the wife a test drive. She had a bad back and she would not purchase until she was sure that the seat would support her back properly. The husband wanted to buy, but the wife said NO with considerable emphasis.

I wonder how many sales have been destroyed in this way - in the kitchen perhaps, where the objection is never heard by the sales person.

Why Mystery Shoppers are Needed. How Not to Sell Cars to Women.

May 27th, 2009

This story was told to us by one of our mystery shoppers. She was not mystery shopping, but buying. She had recently had a baby and needed to upgrade the family car, so she went to a large motor vehicle dealership with her baby and her mum. Here’s what she said…

“My worst (customer) experience was when I was looking to purchase a new  car.  The sales assistant did not take me seriously as my husband was not with me.  The sales person would not provide me with brochures or prices on the car I was interested in and was reluctant to give a test drive of the vehicle despite the fact I said I was looking to purchase a car within the next week.”

Our mystery shopper ended buying a car alright, but it was another brand at a different dealership. She told us that the car she purchased was not her first choice, but after her bad experience at the first dealership she decided not to purchase their brand.

Great service doesn’t mean you will win the sale. BAD service on the other hand is guaranteed to LOSE sales every time.

Why Mystery Shoppers are Needed! Fun (not) with Pizza.

May 20th, 2009

One of our mystery shoppers told us this horror story about her experience with a small pizza chain. Here it is as a guest post.

My most recent best & worst experiences came from the same business - my favourite pizza restaurant. I was recently served by the store owner and was given polite, prompt service in immaculate surroundings. My order was made exactly to my specification and was cheaper than I expected. Also the owner chatted to me in a friendly manner while my pizza was cooking. And the pizza was delicious!

The following week I was served by a rude, abrupt young man who ignored me for the first few minutes. He was untidily attired and filthy dirty. Food was slopped all over his clothes & dough stuck to his hands. The surroundings were no better. The benches were covered in food, as was the floor. My order was wrong and I was overcharged. And the lad argued with me about the price before telling me “STIFF.”

It will be quite some time before I return!

Mystery Shopping Measures the Selling Mistakes that Keep Your Business Poor

May 4th, 2009

Mystery shopping is the ONLY technique that can measure sales skills on the shop floor as they happen. As you read on keep an eye out for the key skills of acknowledgement, qualifying questions, features and benefits, add-on selling and closing.

The loser in this sales battle (whom we have called retailer X) failed to sell and lost. Retailer Y won with good selling. The Retailer X sales person asked no qualifying (needs-based) questions and knew nothing about the product. He could not close the sale because he never opened it! The sales person in Retailer Y on the other hand did ask several questions, and knew enough about the product to match it to the customer’s needs. He discovered Retailer X’s price (from their own catalogue) and not only matched their price, but improved on it.

This story is told by Katrina B - one of our staff.

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I firstly went to Retailer X, as I had seen the camera I liked in their catalogue. I wanted to ask a few questions about the camera, as I wanted to understand a few of its features (and find out exactly what the camera could do – to know if it would meet my needs).

When I arrived at Retailer X, the staff members were standing around chatting to each other. There was not a customer in sight. I waited to be served and after almost 5 minutes, I had to walk around the counter to ask for some assistance. The salesman I spoke to (in the camera department) had no information to give me regarding the camera I was enquiring about. I asked a few questions, and it quickly became apparent that he had no answers (they were reasonably simple questions – How many megapixels?, What were the digital zoom and the optical zoom?, What was the difference between the two zoom types, etc)? I told him I needed to know more information before I would purchase, and I left the store.

I went next door to Retailer Y. I browsed for a short while before a sales person approached. I said I had my eye on a specific camera that I’d seen in the Retailer X catalogue. The salesman asked me specific questions about my needs – what did I like to photograph, did I zoom, did I need action shots, did I want a video feature, etc. He explained what the difference was between brands, and what the different features of each camera were. I didn’t need to ask any of the questions I had asked in Retailer X, as the salesman obviously knew about all the cameras he had in stock, and was able to match me with the one to best suit my needs. Coincidentally, it was the same model camera I had seen in his competitor’s catalogue.

The camera I had decided to buy was more expensive from Retailer Y than from Retailer X. I showed the Retailer Y salesman the Retailer X catalogue, and he told me he would not only match the price, but beat it. He quoted me a slightly lower price (by about $20.00), and threw in a camera case as a bonus. He also offered me a memory card – something the Retailer X salesman hadn’t even mentioned I would need.

I bought the camera then and there from Retailer Y. I was impressed by the knowledge of the product. I felt like I trusted what he was saying, as he seemed knowledgeable. He was keen for my sale – he price matched (and beat) the competitor’s advertised price. He interacted with me in an engaged, interested manner. He asked me what I was looking for, and was honest about what camera would best suit my needs.

When I got home, my husband asked if I had bought a camera. I explained what had happened with the sales people at the two stores, and that I had walked out of Retailer X due to the poor service I received. He was appalled with how I had been treated. He was pleased I had found a salesman who knew what he was talking about at Retailer Y, and he felt confident that I had made a wise choice about the camera. He said he would think twice about going to Retailer X in future, and may try Retailer Y first. I also told my friends at playgroup of my experience – warning them about Retailer X, and referring them to Retailer Y.

I believe the salesman at Retailer X lost my sale. I was prepared to buy from that store, until I encountered a salesman who was apathetic, and knew nothing about his product. I had no intention of even going into Retailer Y, but the salesman there really sold me his product. I also told people about my experience. The poor service of the Retailer X staff member not only lost my sale, but potentially many others, as my husband and friends were very put off by my poor treatment.

How Mystery Shopping Might have Saved a $504.85 sale.

April 28th, 2009

There is a strong argument to measure selling skills with mystery shopping. Two stores side by side were both selling the same digital camera. A customer (one of our staff) was attracted to one of them by a catalogue, but the retailer next door won the sale!

The camera cost $504.85. The $504.85 was lost because a do-nothing sales person did not sell. Either he had not been trained to sell, or he chose not to. Dissatisfied with the sales person’s lack of product knowledge our staff member went to the competitor next door and purchased the camera.

Although it’s unlikely that this exact scenario would occur very often, fifty similar lost sales (for whatever reason) in a month equates to…

$25,242.50

Mystery shopping is not the cure for poor selling, but a mystery shop strongly focused on sales skills will at least tell you if there is a problem.