Mystery shopping

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 shoppingMystery 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)