Boost Performance With Shopping Services

So how are your employees doing... really?
More to the point: how are they treating your
customers when you are out of earshot?

Do they greet the customer cheerfully? Talk knowledgeably about merchandise and services? Offer add-on sales to boost your average sales ticket?

It's tough to answer those questions on your own. Sure, you can have friends shop your store. But chances are your employees see them coming a mile away. Or, you can poll your customers. But shoppers often hesitate to reveal their true feelings.

The solution for many retailers is to hire third party shopping services. Sometimes called "mystery shoppers," these services assign individuals to act as undercover customers at your store.

"Mystery shopping can answer some of the key questions that retailers have about their stores," says Howard Levinson, president of Howard Services, a Norton, Mass., mystery shopping firm which operates nationwide. "Is the staff performing good customer service? Following correct procedures? And are they dealing honestly with their employer?"

These questions have bottom line implications. Happy customers mean fatter profits. "Our studies show that it costs five to six times more to attract new customers than to keep an old one," says Levinson. "If you retain five percent more customers, you can increase your profits by 80 percent."

When treated poorly, customers just stop shopping at your store without telling you why. "Nine out of 10 dissatisfied customers don't complain," says Levinson. "Of the nine who don't complain, seven will stop patronizing the business." Of the people who do complain, says Levinson, 75 percent of them will continue shopping at the business if their complaint is handled properly.

Services are priced economically do that the smallest of retailers can utilize them. The typical cost per visit is from $50 to $60. Many clients of these services have their stores shopped four or five times a month.

Here are five critical points to
follow when dealing with shopping services:

Point #1. Know specifically what you are looking for.

Don't be vague when you describe the shopping service's mission. "It's best to have a specific idea of what you are looking for," says Dr. John Ford, president of National Research Corporation, a shopping service in West Palm Beach, Fla. "Write it down so it is incorporated into a contract. There's no point in funding a fishing expedition."

Point #2. Don't try to do too much.

Be specific, yes. But don't write up a long shopping list of things to find out. "Mystery shopping is not as easy as you might think," says Gary Harper, vice president of marketing services at Elrick & Lavidge Interserv Marketing Solutions, a shopping service in Tucker, Ga. "If you try to cover too much territory you will be asking someone to tackle more than they can remember. Don't forget: Mystery shoppers are not using a pad and paper as they walk your store."

Point #3. Select an experienced firm
that specializes in mystery shopping.

"Getting the information you need comes down to shopper training, says Ford. "You don't want someone who doesn't know what they are doing." See the sidebar, "Selecting a shopping service.")

Point #4. Schedule appropriate
intervals between shopping.

Shop too seldom and you get insufficient data. Shop too often and your staff can spot the undercover customers easily. For a retailer, the intervals may range from weekly for a large store to monthly for a small store.

"Some people can spot mystery shoppers no matter how good they are," cautions Ford. "These staffers will often spread the word about what the shopper looks like. You end up getting false responses."

Point #5. Present mystery shopping
to employees in a positive light.

Get your staff on the team. If they resent the fact that you are mystery shopping your store, your whole mission will be counterproductive. It's a bad idea to try to hide the practice of mystery shopping from your employees. This will only encourage the view of the service as a "sneak attack" by management.

Present the shopping service as a training aid, to help employees perform better not as a disciplinary procedure meant to "catch" an employee doing something wrong.

Keep this article's points in mind and you will go a long way toward assuring a big payoff from mystery shopping. "With more competition, you've got to be more productive," says Ford. "And greater productivity comes from better performance by people on the front lines."

How to get the most out of a shopping service

• Know what you want before engaging the service.
• Don't try to do too much.
• Select an experienced firm that specializes in mystery shopping.
• Schedule appropriate intervals between shopping.
• Get the employees on your side.

Get your staff on board.

Present the shopping service in a positive light to employees. "You lose if employees think negative about anything you do," says Gary Harper, vice president of marketing services at Elrick & Lavidge Interserv Marketing Solutions, a shopping service in Tucker, Ga. "Have them look at the shopping service as a way to modify training procedures and reward people who do well."

Hiding the use of mystery shoppers is a bad idea. "There is some question as to whether mystery shopping is ethical if employees are not made aware of it," says Dr. John Ford, president of National Research Corporation, a shopping service in West Palm Beach, Fla.

"You can also use mystey shopping as part of a reward system" says Howard Levinson, president of Howard Services, a Norton, Mass. "For example, the cashier who goes an extra mile for a customer may receive a $100 gift certificate."

Sources of shopping service leads.

When looking for a shopping service, start by asking for referrals from other retailers in your area. And find out if the retailer was happy with the results achieved.

You can also get leads from your local chamber of commerce.

How to select a shopping service

Which shopping service is right for you? Here are some guidelines on making the final cut:

Good track record. "It's critical to deal with a firm with a good reputation," says Gary Harper, vice president of marketing services at Elrick & Lavidge Interserv Marketing Solutions, a shopping service in Tucker, Ga. "Although it seems simple to put people out in stores and get info back, the quality of information is important. Even though they are mystery shoppers, you want to know they are well trained and have a goal."

This means getting a list of current customers from any shopping service you are considering. Then call those customers for feedback.

Quality of finished reports. "Find out what type of report you will get," suggests Howard Levinson, president of Howard Services, Norton, Mass. "What is the format? Is it a simple written form, or is it computer generated with lots of analysis? And how long does it take to get your reports? From three to seven days is the average. Our firm guarantees 14 days. Other companies may take three to four weeks."