Can You Mystery Shop Your Way to Overnight Success?

Posted on May 31, 2011 by Beth

In the perfect world, we could snap our fingers and get whatever we want when we want it. But here in reality, we have to work and wait for those things we want to happen.  It is a philosophy to live by in life and in business — it takes a lot of blood, sweat and tears to obtain and maintain success. Unfortunately, some businesses seem to think that  a mystery shopping company has the ability to bypass the hard work and launch a company in jeopardy to success overnight.

A mystery shopping service can help a company turn itself around, but the process takes time. The assessments completed can help identify procedures that could be improved to deliver a better customer experience. A program like this looks at the big picture as well as all of the minor details that they encounter along the way. When the mystery shopping service has worked their magic,* the store, the staff, the management and the atmosphere all have a positive impact upon every customer that walks through the doors.

Of course, this takes time so the mystery shopping service can gather all of the required data, advise the business on the changes they could make, and then complete additional review. Those that expect that hiring a mystery shopping service to dig them out of a hole fast, are never going to get what they expect.

All good things are worth waiting for, and the mystery shopping route is a journey, so this applies.

*When we say magic, we really mean a time-tested formula based on objective data and experience.


Posted in Blog, Customer Experience | Tagged , , , , | Leave a comment

Mystery Shopping and Customer Satisfaction Surveys Working Together

Posted on May 26, 2011 by Beth

You’ve heard it before – you just can’t put all your eggs in one basket – not with any decision you make in life. So, when trying to enhance your level of customer satisfaction and your retail sales, this is a rule that still applies. Mystery shopping works and customer feedback helps; you don’t need to rely upon just one strategy.

If you are not yet convinced that this multi-faceted approach is essential for the greatest success, then we’ll show you the benefits:

How Mystery Shopping Works

  • Mystery shopping relies upon observations on how the staff members perform
  • They evaluate things like how many staff members were on the floor at the store, checkout times, compliance to known company policies, the overall level of knowledge of staff, and the speed of checkout.
  • Mystery shoppers are objective in their approach, but they are looking at the fine details.

How Customer Satisfaction Data Works

  • Actual customers are subjective, and at the end of the day, it isn’t always the fine details that determine how pleased they were with their shopping experience. The overall vibe they get can determine whether or not they will come back, even if they can’t pinpoint something about the experience that they didn’t appreciate.
  • While customers may not be totally objective, they are the ones that have a direct impact on business revenue.
  • Customers are surveyed at random.

Essentially, a well-rounded mystery shopping program that incorporates both of the components outlined above, provides feedback from two different and essential perspectives. As a retailer, you may choose to focus more heavily on one type of feedback over another, but having it all available to you will have the greatest benefit to your success.


Posted in Blog, Customer Experience | Tagged , , , | Leave a comment

Customer Intercepts and Mystery Shopping Meets Medicine

Posted on May 19, 2011 by Beth

Healthcare is a necessary service. Unfortunately, it is also industry that is not known for providing the best customer service. Many healthcare providers believe that regardless of what they do, people are going to come back simply because they have to. The good news is that there are some practices choosing to start looking after their patients, even if the motivations are due to financial incentives.

Mystery shopping in healthcare is becoming an increasing trend by those that want to determine how to increase the level of patient satisfaction. Mystery shopping in this industry does follow a slightly different format than it does in retail industry. Mystery shoppers disguising themselves as patients try to  connect with a medical practice either by phone or in person. They evaluate all of the same basic things that any mystery shopping program does. However, they are careful to avoid taking up the time of doctors when patients in need require attention.

Feedback from a mystery shopping program can help give medical practices an advantage in the industry. By taking the extra step to offer more than just the basic medical services, they may find that their patients actually appreciate the experience they get.


Posted in Blog, Customer Experience | Leave a comment

Combining Mystery Shopping and Customer Feedback

Posted on May 17, 2011 by Tom

The best users of mystery shopping programs offer additional methods to capture data that can be used to make necessary improvements. The reason why these different strategies work together to create such a comprehensive program is because they offer a variety of perspectives that — when combined — give great insight into the total customer experience. For the most part, mystery shopping programs look at the customer experience from the viewpoint of the customer and that of the store staff.

Mystery shopping focuses on staff performance — how well the company executes its operations and customer service objectives based on fact-based observations. Since shoppers are given detailed guidelines in advance on what to look for, mystery shoppers typically visit the store 1 – 4 times each month and focus on quality control, training and incentives. Additionally, Mystery Shoppers are recruited based on demographic profiles that closely match those of a company’s real customers.

Mystery Shoppers are paid to be very objective and detailed, reporting on specific visits or calls and observing 100% accurately the precise number of customers and employees in-store, service times down to the second, what was in or out of compliance during the visit.. Each evaluation is then used independently to make improvements to operations and training. It is not difficult to see how much valuable information can be gathered from the mystery shopper’s point of view of employee performance.

However, customers have a completely different vantage point; a thoroughly subjective one. Many see employee performance in a completely different light. This is where customer surveys become very important, measuring what the customers really think and feel about the company, its services, its products and its marketing.

Customer surveys are not based on fact; they’re based on individual opinion. But that opinion is as valuable as a mystery shopper’s report. Generally, comsumers are sampled at random from a qualified population to extrapolate results that represent a significantly larger population. Encouraged to freely express their highly subjective opinions, individual surveys are not predictive of every customer’s experience unless sufficient samples are taken and results analyzed in aggregate.

Although customers lack the pre-arranged guidelines and objective focus of the mystery shopper, customers aren’t dummies. They’re not afraid to express their opinions on whether there were enough employees available to serve customers, if service times were adequate, and whether other criteria met their standards. Customer’s attention spans are typically short, limiting the details that can be gotten, but that does not make the information any less valuable.

The best mystery shopping programs combine the viewpoints, perceptions and facts from both sides for a complete picture of the customer experience.


Posted in Blog, Customer Experience | Tagged , , , , | Leave a comment

Amazon Starts Flash Sale: Late to the Party or Trendsetting?

Posted on May 6, 2011 by Beth

myhabit Amazon Starts Flash Sale: Late to the Party or Trendsetting?

We are used to seeing Amazon as a leader in e-commerce. In many ways, it is a bit surprising that they have come so late to the party with the introduction of their own flash sale site, Myhabitat.

But let’s not write Amazon off too soon. They’ve had the chance to see what works and what doesn’t  by watching other sites like Rue La La, Hautelook and Gilt that started the flash sale trend. Considering Amazon’s connections with many major retailers of designer clothing, there is a good chance they might just be in a position to one-up their competition. Or at least attain a strong position as a major player.

Instead of rolling our eyes that Amazon is following a trend rather than setting one, let’s look at what Amazon is doing to set themselves apart from others offering something similar.

  • Amazon can fulfill orders much faster than their competitors because they actually have access to the warehouses before the sale has even begun. Other sites only obtain and ship the items that have been sold, taking time for them to get the items from the retailers. Sometimes, they have to rely on the retailers ship on their behalf, pushing them one step further from the process.
  • Amazon offers free shipping and free returns so those that purchase on impulse don’t have to hesitate. Often with online shopping for clothing, people order multiple sizes or colours to ensure they get something they love. The fact that they don’t have to pay extra for this luxury means even more sales will be made. Amazon credits all returns with funds that can be used at any of Amazon’s sites (Amazon.com, Endless or Myhabitat).
  • They are in a position to offer flash sales from 800 major brands with which they already have an affiliate relationship.
  • Amazon has strong online merchandising. Amazon ensures people can see what they’re buying with images that offer a 360 degree view of each garment.

Posted in Blog, Customer Experience | Tagged , , , , , , , | Leave a comment

Aligning the Expectations of Your Customers

Posted on May 4, 2011 by Beth

This week, Jon Steinberg of Buzzfeed wrote about the challenges that all businesses face with their consumers and how you can recognize when you’re dealing with a customer that is really not a customer. He outlined how those who are true customers with an intent to purchase a product or service will take it or leave what you’re offering more or less as it is. Those who have no intent of becoming customers may try to negotiative a different type of offering that’s outside of your business structure or they’ll walk.

In any business, it can be tempting to give people what they want. After all, if they’re coming to you asking for something that you can deliver — even if it’s not what you do — and you can make a transaction. Every business likes revenue, but you’ve also got to stick to your core values or you are going to lose your image outright.

David Rich, CEO of ICC/Decision Services, left a comment on this article using Costco as a great example. He said that Costco simply wouldn’t be Costco if they offered to bag your purchases because it’s not who they are. Costco manages to keep costs and labor low by avoiding offering these services, and if they made changes to those things, they’d be straying far away from their whole business model. Sure, at the threat of losing one customer they could theoretically offer up a plastic bag — but then it’s a slippery slope when everyone starts demanding it. The next thing you know, Costco’s prices will be on par with a major department store or specialty grocery store because they’ve had to change the core of who they are.

If customers don’t know what to expect from a business, they’re also never going to be satisfied. Their expectations need to be aligned up front. While there can be some leniency, too much “give” from a retailer is only going to lead to disaster.

You’ve got to set the standards of your business. If you’re going to make changes to your model, do it across the board based on demand. Otherwise, you’re going to lose your image, have no core values to abide by, and have a very confused and generally distressed clientelle.


Posted in Blog, Customer Experience | Tagged , , , , , , | Leave a comment

QR Code Promotions: A Modern Take on Scratch and Save?

Posted on April 25, 2011 by Beth

There is a world of opportunity for retailers looking to get creative in their use of QR codes to generate a little bit of customer interest. However, it would seem that too many have limited themselves to using QR codes like glorified business cards. Individuals that decided to give a code a scan end up landing on a business’ social media page, which just isn’t a fun use of the technology.

Instead, businesses can start looking at introducing fun promotions to customers, and a simple way to start would be to take that old concept of scratch and save to new levels. Imagine if you could do your shopping and get up to the cash where you’re offered the opportunity to scan the special QR codes on some of your products. The promotion that appears could be any denomination and it could be varied with a unique code for each unit of product sold.

This method of dispensing promotions would  be both exciting and eco-friendly; two things your customers will appreciate!

I’ve also heard whispers about just how cool a promotional QR code scavenger hunt would be. How would you like to see this technology used in the retail world?


Posted in Blog, Customer Experience | Leave a comment

Local Response Aggregates Social Media Posts to Find Your Customers

Posted on April 21, 2011 by Beth

Local Response is a new tool that promises to aggregate social media posts to find your customers based on the things they are posting online. It is based on the premise that as a business owner, you just don’t have the time to weed through everything yourself to find the right people to reach out to. It compiles all of the necessary data and then identifies the first people you should try and connect with.

It doesn’t simply identify those that are mentioning your business by name. It finds people in your local area and looks at interests and routines to determine who might be a captive audience. It takes this data from more than a dozen different social media sites. Once it has identified the individuals your business should be reaching out to, it helps you put together a special offer to hook them.

While so far their offerings seem enticing, it’s the offer part that enters into a grey area – it could be beneficial, or it may not be at all, depending on the intent of the prospective customers. The thing with many social media sites is that individuals don’t necessarily need to beat a specific location to post that they are. There is also no ingrained honesty detector to monitor the truth in their general statements. What this means is that people could theoretically catch on to what Local Response does and start making specific posts to appear as though they’re the most appealing customers to get a deal.

The strategy that should work with a tool like this is as follows:

  1. Find the people that could become paying customers
  2. Entice the people that could become paying customers
  3. Keep them hooked as full price paying customers after that initial offer gets them through the door

What could very well end up happening instead is:

  1. Find the people that could become paying customers
  2. Entice the people that could become paying customers
  3. Teach these people that COULD become full price paying customers that they NEVER have to pay full price again if they play their cards right online. These people may also tell their friends what they’ve learned

So the bottom line here is use the tool to identify your target market, but be careful to step away from Local Response to look at an individual’s social media stream. This way, you can ensure you are not looking at someone putting up a front for a bargain.


Posted in Blog, Customer Experience | Tagged , , , , , | Leave a comment

3 tips to ensure your Mystery Shopping program success

Posted on April 19, 2011 by Beth

Too often, businesses make the assumption that installing a mystery shopping program will guarantee increased customer satisfaction and sales growth. In reality, retailers play a large part in the process and bad choices may lead to ineffective results.

Pulling the plug on a mystery shopping program because scores plateau temporarily is one of the most common mistakes retailers make. Ensure you don’t fall into this trap.

Below are some some guidelines on what you can do as a retailer to make sure your mystery shopping program works to its maximum benefit.

  1. Shop the right stores – you may not feel it’s necessary to use a mystery shopping program to see what’s happening at your stores with the top sales volume. But wouldn’t you like to know what they’re doing right that could help other stores? Or what they could be doing to perform even better than they are already? Ensure you don’t forget about your top shrink stores either; it’s not just the least profitable stores that can benefit.
  2. Recognize all positive efforts of stores based on shopping results – just because you haven’t seen a sharp incline of profits doesn’t mean your stores aren’t doing something right. When reviewing your shopper reports, ensure you give kudos where it’s due. Recognize the stores that have been showing an improvement with customer experience initiatives, efficiency and more.
  3. Make sure you communicate throughout the process – using a mystery shopping program doesn’t replace the need for hands-on actions. Schedule regular meetings with store management, and stay engaged with customers. The latter can be accomplished by keeping customers informed of initiatives with contests and customer satisfaction programs.

Remember, a mystery shopping program will take you much of the way, but you’ve got to take steps to make sure you make the most of the tools you’re given!


Posted in Blog, Customer Experience | Tagged , , , , | 1 Comment

Coupons & Promotions: Enhancing Customer Experience at the Cost of Your Business?

Posted on April 14, 2011 by Beth

In order to be successful in any business, you’ve got to have limitations on just how far you’ll go for your customer. Earlier this week, we focused on how setting certain boundaries can actually improve customer experience. The same applies to the use of promotions and coupons – take it too far to try and please your customer and you will find it comes at the cost of your business. That in no way benefits your clientele.

To recognize why this matters, let’s explore what coupons and promotions should accomplish:

  • They create buzz because you’re daring to do something exciting or different
  • They create awareness about a new business or new products offered by an established business
  • They increase the number of customer/sales during slow periods

While all of the above is great, there are some ways that promotions can backfire if not used to market to your customers in the right way. You need to be careful not to overdo it; if you are always offering the same promotion, it becomes expected and loses the ‘wow factor’. You’re also going to find you have some unhappy customers once that promotion is snatched away from them. It goes back to the concept of setting expectations; set that bar too high and there’s nowhere to go but down.

There’s also the potential to seriously hurt your sales.  To illustrate this point I’ll draw on personal experience. My husband is in the restaurant industry and currently works for a popular chain restaurant. Late last year, there were a series of promotions rolled out and implemented all across the brand to help boost business. For many of the locations, it was an effective tool and it increased their sales. This is because the restaurants hadn’t been full on a nightly basis and more people started piling in for the promo.

One location, however, was hurt greatly by the promotion. Why? Because the restaurant was already full each and every day of the week with people purchasing full-priced menu items. Once the promotion was rolled out, the same number of people still came in; they just started ordering the promotional items instead. The promotion was directly responsible for cutting store revenue in half. For a store like this one, some kind of one-off loyalty incentive would have been more appropriate  to reward those keeping the tables full night after night if something needed to be implemented.

The point is, businesses need to look past the idea of making customers happy by offering promotions and ensure that what they’re doing is in the best interest of their establishment too. It’s easy to get lured in by the hype that sites like Groupon create. But remember, there is such thing as a happy median that looks after the best interests of everyone.

The New York Times also put out an interesting article on how the Groupon phenomenon throws some businesses off the mark; so check that out too and share your thoughts on the subject with us!


Posted in Blog, Customer Experience | Tagged , , , , , | Leave a comment