Mystery Shopping in practice?

We have explained the general notion of Mystery Shopping in a separate article, which focusses more on the theories behind it. Now we will look at how Mystery Shopping is used and how it works in practice. We clarify the reasons for Mystery Shopping and examine specific methods in more detail.

Measuring shopping experiences

In a competitive marketplace the quality of service often determines whether a customer buys or doesn’t buy, and whether they will visit again. The deployment of test customers, also known as Mystery Shopping or Mystery Research, is a practical and useful method for testing and long-term assurance of above-average service quality.

„My shopping experience was a positive one when my expectations were exceeded„, concludes a study conducted by the Deggendorf University of Applied Sciences under the leadership of Prof. Christian Zich. What can Mystery Shopping do for an individual company and for whom is this method suitable? Many large companies already use the method with great results. Mystery Shopping is also an effective way for small and medium-sized companies with several branches, for example, to keep their own service quality on a consistently high level.

Can Mystery Shopping increase sales?

The answer was „Yes“. Provided that the results of the Mystery Tests are used as a proactive means of motivating employees and implementing high service standards. First and foremost, Mystery Shopping is a suitable method for measuring service quality. This includes, for example, how employees act in a sales situation or sales conversation, or whether objective standards such as cleanliness and product presentation are implemented correctly in all stores.

In this way best practices can be promoted, and deficiencies are identified and can then be counteracted. The great advantage of the method is that it tests objectively in the real sales situation, unlike customer surveys that „only“ collect personal opinions.

What does Mystery Shopping test?

Our well-trained Mystery Shoppers objectively test and dig deep into different dimensions of a sales or consulting situation. Aspects that make sense in almost all tests include friendliness, guidance and perception of the customer, as well as staff expertise. This ranges from questions such as „Does the employee know about the product?“, „Does the sales staff act on the information they receive from the customer?“, „Does the employee build a relationship with the customer?“, to questions about additional sales and customer loyalty measures.

Market-Scout, based in Vienna, has been conducting Mystery Shopping projects for many years. By using a combination of customer satisfaction surveys and objective test purchases, we take multiple perspectives into account. From Market-Scout’s point of view, it is also important to relate the insights to a company’s overarching marketing strategy.

How does a Mystery Shopping project work in practice?

The starting point of any research is always the identification of a discrepancy or a problem and a good measure of curiosity. Perhaps the number of customers is declining or you get more and more complaints? Or the company is faced with a sudden unexplained shrinkage of goods? In an initial conversation we clarify your individual concerns and also what a Mystery Study can do for you.

In addition to the survey we design individual test scenarios, so-called scripts, for covert purchases. Following the training of the testers, they go out into the field and conduct the tests, usually within a predefined period of time. The results are compiled in a report that also contains targeted suggestions for marketing and sales measures.

Service quality as key to customer satisfaction

Which methods can be used to measure customer satisfaction? And why is it important to do this regularly?

Importance of customer satisfaction in the company

Customer satisfaction is an important factor when it comes to influencing the business success of a company in the long term.

But just how satisfied is the customer? And more specifically, how satisfied are your customers? The need for insights about customer satisfaction has brought forward a „survey culture“, which has been thriving in particular through the use of electronic media. Surveys collect the subjective opinion of the respondent. This can provide important clues. Another method for measuring service quality is the so-called Mystery Shopping. In this process, an undercover test customer checks various parameters in a real sales situation on the basis of previously defined dimensions, such as friendliness, cleanliness or the quality of the conversation.

The reasons for a customer’s satisfaction level can be manifold. Especially in the retail sector, service quality is one of the key factors influencing customer satisfaction.

Methods for measuring customer satisfaction

Quantitative procedures and standardized survey methods quickly reach their limits when trying to shed light on the phenomenon of „service“. This has to do with the intangible nature of service and refers to the volatility of service interactions.

Most of the test criteria which are suitable for assessing the quality of service can only be perceived and evaluated during the actual service process. Therefore, the Mystery Shopping method is particularly suitable in this case.

Customer satisfaction surveys vs Mystery Shopping

Classic customer satisfaction surveys collect information about customer expectations and their fulfillment in the past.

Mystery Shopping enables the collection of customer perceptions in direct contact with the object at the time.

Through their experience, our trained Mystery Shoppers can explain the variance of the satisfaction level to a significantly higher degree than real customers.

Importance of the Mystery Shoppers‘ training

Because our Mystery Shoppers are trained and experienced, they can evaluate even individual components of the service much better. The great strength of Mystery Shopping lies precisely in capturing the moment – the authentic situation of the company is captured at the time of the service delivery. Classic customer satisfaction surveys start with the difference between expected and perceived service. Mystery Shopping, on the other hand, starts with sparking the service itself. As a result, Mystery Shopping provides more diverse and specified opportunities for improvement.

The Gap Model of Parasuraman, Zeithaml and Berry

The Gap Model illustrates the areas of customer satisfaction that classic customer surveys cannot perceive, but which can be uncovered with the help of Mystery Shopping.

The Gap Model assumes that the customer’s service quality perception results from the comparison between service expectations and the actual service (Gap 5). Gap 1-4 denotes discrepancies on the provider’s side of the service. Gap 1 refers to misconceptions that the company’s management has about customer expectations. Gap 2 results from the difference created by Gap 1. Practically speaking, the decision-makers‘ misconceptions about customer expectations result in mismatched specifications for the service. Gap 3 refers to guidelines that are misunderstood by employees, and Gap 4 refers to services that are miscommunicated.

Gaining insights through Video Mystery Shopping

Recording a Mystery Shopping session on video is a novelty in the German-speaking countries. The method is not yet as widespread there as it is in the Anglo-American world, for example. The big question is: what are the benefits of Video Mystery Shopping and how can the data be evaluated in a meaningful way?

Video Mystery Shopping offers several advantages over conventional Mystery Shopping. Depending on the industry and the subject of investigation, a video provides more detailed and comprehensible data. It also contributes to more objectivity, as the statements of the individual Mystery Shopper are mirrored by third parties. A major advantage of video recording is that the test situation is easier to understand. In addition to the tester, an independent third party also checks the data. This leads to a stronger objectification of the results. In this way, the respective store setup and the shopper’s contact points as well as the point of sale are also analyzed.

Better comprehension and more objectivity

For the clients of the study, the great advantage of Video Mystery Shopping is that it is easier to understand – they can experience the Mystery Shopping live for themselves. Through this, a test may give rise to further questions that were not at all clear at the beginning of the investigation. Video Mystery Shopping works, similar to classic Mystery Shopping, following a predefined script – the so-called test scenario. After their visit the Mystery Shoppers also have to complete the survey form. The video recording is used to verify the test by one or more independent persons. In addition, the video provides further data, for example on the store setup or the design of the point of sale. All in all, the written results in the evaluation sheet become much more comprehensible.