Using Compensation To Drive Mystery Shopping Results

Companies who use mystery shopping programs to boost productivity and revenue often incentivize employees who attain good results. After all, mystery shopping goals are met by people, and people enjoy being rewarded for a job well done. There’s nothing inherently wrong with rewarding top performers, and it can certainly go a long way towards motivating other employees as well. To be effective, however, incentives must be awarded correctly, and that begins with analyzing the data.

Less Is More

Many times, market research departments are put in charge of finding a mystery shopping vendor. Marketing often requires extensive reporting, because they look at things from their viewpoint. However, in the end, it is the stores and the store management team
(the District & Regional Managers) who have to use the information. Report overkill can actually hinder their effectiveness.

Having 100 reports to choose from, and access to a big bank of data you can slice and dice a million ways, might seem like it would be helpful. But at the end of the day, is that really going to change staff behaviors and drive results at the store level?

My suggestion is to keep things simple. A few targeted reports with meaningful, useable data (like basic trending and top opportunities) is enough for most management levels. If market research needs multiple reports, it can certainly be accomplished. But be careful not to get so bogged down in gathering data that the rest of the organization is hindered.

“Less is More’ is the buzzword when it comes to reporting. Gathering lots of different data might seem useful, but in the end, things can get messy and the ability to use data to effect any real frontline staff change is minimized. If marketing wants reports, they can have them. Help managers do their very best on the floor by providing the targeted data they really need.

Expert Advice on Designing Your Mystery Shopping Program

Mystery shopping is an excellent way to uncover whether your efforts at sales training are effective. While finding a quality vendor to implement the right mystery shopping program can be a daunting task, choosing a vendor with specific experience in your industry will likely yield more positive results. If the mystery shopping vendor you’re considering is a member of a marketing research association, they may be the specialists you’re looking for. Certainly, membership in the Mystery Shopping Providers Association is key.

A big mistake some institutions are making is using existing customers to serve as mystery shoppers. The last few years have seen this trend, because it is a less expensive option. But this method has drawbacks. How would a customer evaluate an employee’s sales skills if that customer does not know how the company has trained its employees to sell? If real customers are used to evaluate employee performance, how does the company ensure those customers can make fair comparisons, or even possess the background needed to evaluate employees? How can the company prevent ‘popularity’, or personal likes and dislikes, from coloring the opinions of customers? Overall, the opinions of customers are far too subjective, whereas professional mystery shoppers understand exactly what to look for and how to report on that measurable criteria.

Additionally, a good mystery shopping program should ‘fit’ your corporate culture. The program that might work for a bank would likely fail for a grocery store. Questionnaires used to evaluate employees must reflect the goals and objectives of that culture. Some companies are more concerned with compliance, whereas others are more interested in pure customer service.

Bringing employees in on the process of designing a mystery shopping program is crucial for its success. A training program, wherein employees are briefed on what will take place and receive instructions on how to meet the program’s criteria, is important. Managers must take the program seriously as well if they expect employees to do the same. When employees know rewards and recognition will be available to them for meeting the program’s standards, employee motivation to comply will be high.

Do your homework when choosing your mystery shopping provider to find the best fit. David Rich, President of ICC Decision Services, explains, “ICC/DS offers clients a coordinated single source partnership for all CEM measurement needs. Our comprehensive portfolio of custom designed management tools can measure all aspects of the customer experience from mystery shopping and competitive shops to customer satisfaction surveys, employee surveys, and compliance audits. Our expert professional staff monitors multiple input data streams to help our clients maintain a competitive edge in today's marketplace. And our top management team is fully engaged and meets frequently with clients to provide insight, recommendations and share industry best practices.”

Employee Satisfaction = a Good Customer Experience

Ever have a boss you loved to hate? You’d bite your lip when he or she spoke, afraid you might say what you were really thinking. If so, you already understand how employee satisfaction equals the customer experience.

Not long ago, as I shopped at a local discount store, I overheard several employees bashing their boss. Obviously, the ladies did not like their jobs, but they needed the work.

When I asked for help, I received half-hearted service--just enough to get by, nothing more. My customer experience was sorely compromised. Perhaps the boss was difficult to work for. I’ll never know because I won’t be shopping in that store again.

Conversely, I’ve shopped in stores obviously eager to improve the customer experience. The supervisor had a great working relationship with his employees, and it was a pleasure all around. I felt welcomed and valued and received service with a smile.

A good mystery shopping program uncovers necessary information in both these instances. The boss of the unhappy employees doesn’t realize what’s going on behind the scenes. Mystery shopping would reveal it…and explain why his profits are dwindling. Mystery shopping rewards and motivates employees. If they’re unhappy, it can be fixed. If they’re already treating customers well, mystery shopping ensures the retailer’s future.

Employee satisfaction equals a satisfying customer experience. To cater to customers’ needs, it’s not enough to guess. And they’re probably not going to tell you, even if you ask. Like the unhappy employee in the beginning of this story, they’re biting their lips and hoping you don’t notice.

The only way to give customers what they want is to know what that is. And the only way to really know your customers’ unbiased opinions is through mystery shopping.

6 Tips to Give Customers What They Want

How can mystery shopping help you give customers what they want? Here are 6 tips to get you started:

1. Long-term employees are an asset- Regular customers are often more comfortable dealing with employees they recognize, especially if they have a problem or a grievance. The best mystery shopping programs encourage excellence, rewarding motivated employees to continue doing a good job, and feeling proud of their customer service skills.

2. Encourage customer loyalty- Good service is great, but a coupon toward the next purchase is better. Teaching staff how to speak with customers and encourage future sales can really boost your bottom line. And mystery shopping can be a wonderful training and teaching tool to accomplish this goal.

3. Keep your word-If you say you are going to do something for a customer, follow through. Employees who are trained to understand store policies and procedures are better equipped to deal with daily issues effectively. Mystery shopping can accurately assess how well your frontline staff is doing.

4. Treat Your Customer as if he/she is the best- How your employees feel about working for your company begins at the top. Motivated employees who value teamwork create a store atmosphere shoppers love. Happy shoppers stay longer and spend more money. A good mystery shopping program can uncover where your store is weakest and strongest. Fix what’s wrong. Reward what’s right. Watch your sales soar.

There’s No Return for Unhappy Customers

Outdated policies and unhappy frontline staff do not create a good customer experience. Customers who purchase items from your store expect to be able to return those same items. And they want to be treated with respect. Many stores still force antiquated policies upon their customers. A simple thing like a “No Return” Policy may mean those customers will never return as well. Is it worth it?

How can you know if your policies are turning customers away? One way top retailers find out is through mystery shopping and customer surveys. Professional mystery shoppers pose as ordinary customers, testing out policies, staff, the store environment and your merchandise. They objectively report their observations, which retailers use to amend employee behaviors, environmental or product issues, and policies. Customer surveys are also very useful, offering a subjective look at what your customers really think.

David Rich, President of ICC Decision Services, offers his perspective. “We provide clients with one source for all their measurement tools. We design and coordinate each piece to complement the overall program goals. There is no ‘finger pointing’ – the program responsibility rests with us. And our team of market research professionals and industry experts work closely to optimize the effectiveness of your unique Customer Experience Management (CEM) program. Specifically, our mystery shopping programs drive frontline staff performance improvement, and increased revenue. We recruit, test, certify and closely monitor our shoppers. Fully customized and integrated with in-person, Web site, call center and telephone-based components, our mystery shopping programs include dynamic and static 24/7 graphic reporting powered by our proprietary state-of-the-art Web-based technology. Our programs leave no doubt as to what your customers really think of your store and your products.”

Building Consumer Loyalty

Holiday shopping price wars are in full swing. But despite high sales for Black Friday, business forecasters predict a slow retail season. Perhaps more retailers should consider ‘reverse marketing.’

It’s simple: Give consumers what they really want-- a feeling of being more important than the almighty dollar.

If you’ve ever carted a pocket full of coupons to the grocery store and thought: “Why doesn’t the store just lower its prices and forget about coupons?” you know what we mean. Imagine the popularity of the store that decided to cut all coupons and simply lower prices instead. When customers feel important, loyalty builds. And it begins with a gesture that says profits are not the only important thing.

Mystery shopping is an invaluable tool in determining what customers really want. When a qualified mystery shopper enters your store, he or she accurately assesses store aspects that may be turning off—or turning on—your average customer. Their keen observations can tell you more than the bare basics. Look at the top retailers: Best Buy, Starbucks, Trader Joe’s…what do they have that many stores do not? They all use mystery shopping. They work hard to find out what their customers want and, along with the products and pricing their buying audience expects, they offer an uncommon level of service to match. The customer is happy and reasons, “Why shop anywhere else?” This is the secret to their success.

A solid customer base built on loyalty is vital. Businesses can even charge more, if they are willing to give more. Listening to the customer, providing a hassle free return policy, speedy service, and a simple thing called courtesy wins the battle. And mystery shopping points the way to the policies and procedures that create top retailers.

Fed Up With Poor Service

With so much attention given to customer service, is it getting any better? Apparently retailers still have a long way to go.

A new report from Yankelovich, Consumers in Control: Customer Service in the Age of Consumer Empowerment, highlights the exasperation customers continue to feel about poor customer service. Here are some facts:
• 27% are even willing to pay just to have their needs met. And customers who don’t find what they want in one place will simply move on to the next place, making the customer experience an integral part of brand loyalty.
• 62% believe staff "don't care much" about customer needs. That’s a high number. More frightening, only two years ago that number was 52%.
• 66 % believe companies would rather sell existing products instead of offering items that address the customer’s lifestyle and needs. In 2004, this figure was just 58%.

People are getting it. And stores that refuse to care about customer service simply won’t survive over the long haul. What can retailers do to turn the tide? Mystery shopping is one pivotal tool in turning things around for some retailers who believe they are offering what the customer wants, but aren’t seeing that reflected in their bottom line.

A mystery shopping program measures your customer service and product quality in the most objective manner, observing new or currently existing policies in practice.
When conducted company-wide, mystery shopping paints a dynamic picture of what your operation’s strong suits are and where improvement is needed. It works for the top retailers. It can work for you.

Improving the Customer Experience: During the Holidays and Beyond

Amidst complaints from shoppers about bad service, and from staff about bad customers, Best Buy continues to get it right. How did Best Buy get so smart? In part, with a survey measuring customers’ most important holiday shopping factors including:

• return policy (92 percent)
• speaking to a live, not automated, operator when calling the store (91 percent), stepped up customer assistance in-store (89 percent)
• a helpful, easy-to-use Web site (70 percent)
President/COO Brian Dunn explains, “We start holiday planning 11 months in advance so we can provide the very best experience possible. Our holiday approach is focused on bringing our customers complete gift solutions by offering a wide range of products, knowledgeable sales associates, and premium service to customers whether it’s in store, online or through our phone channel.”

From survey results, Best Buy has improved the shopping experience with:

Strategic Uses of Mystery Shopping...Another Example

As outlined in our first look at "strategic uses of mystery shopping"," evaluating the effect of additional staffing on service levels and sales is a top priority for retailers. Putting together a program to meet that need, however, can feel like a daunting task and may keep some retailers from seeing this objective through.

Let’s look at how one top retailer met this challenge through the concept of “Spotlight Stores”:

A major clothing retailer wanted to improve service levels in consistently under performing stores. Using mystery shopping strategically, they increased the frequency of shops, and advised the “spotlight” stores of the new plan. This allowed them to more closely monitor performance, and provided more opportunities to deliver feedback, retraining and evaluation.

The additional frequency, coupled with retraining and reinforcement, resulted in the under performing stores actually outperforming the balance of the chain.

The use of more frequent shops to help change behavior was used successfully, highlighting these two distinct mystery shopping strategies as excellent methods evaluating and measuring important data.