Archive for July, 2009

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

Tuesday, 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.

Monday, 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?

Wednesday, 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

Thursday, 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.