Mystery shopping is an assessment method that companies use to evaluate their customer service processes, products, and services from the customer’s perspective.
It provides insight into EVERYTHING a consumer experiences and observes during their shopping or service journey.
In other words, it provides insight into thecustomer experience.
Compared to other studies, the main advantage is that it provides objective and detailed information.
This is because mystery shoppers (who conduct the surveys) are trained to provide detailed accounts of their experiences.
That’s why we say this is an excellent tool for a customer-focused manager.
After all, a company’s financial results depend more and more on customer satisfaction and loyalty!
So, on this page, you’ll learn everything there is to know about mystery shopping.
In short
Here's what you can expect:
- What is Mystery Shopping?
- What are the benefits?
- How the search works
- Reasons to hire
- Types of Mystery Shopping
- Implementation Strategies
In addition, you'll also learn how to use it to achieve the desired results:
- Practical Implementation
- Using the survey data
- Measuring ROI
- Pricing
- 4 Must-Know Tips for Hiring
So, are you ready to take advantage of this opportunity?
So, let's get started!
Sam Walton, founder of Walmart
“There is only one boss: the customer. And he can fire everyone in the company—from the CEO on down—simply by spending his money elsewhere.”
1. What is Mystery Shopping?
Mystery shopping was developed in the United States and became popular there in the 1940s. By the late 1980s, it had been introduced to Brazil.
By definition, mystery shopping is a type of qualitative research.
In other words, it is based on the observation and description of the experience of receiving customer service or purchasing a product or service.
In practice, it is used by companies that want to evaluate their customer service channels, the attitude and performance of their employees, as well as the organization and cleanliness of their retail locations.
And why the name "Mystery Shopping"?
Since researchers pose as customers and conduct the evaluation anonymously, this practice is known as mystery shopping, or mystery shopper. In Brazil, it is also referred to as Cliente Secreto, Cliente Misterioso, and Cliente Oculto.
But what really matters is that mystery shopping is a strategic tool for businesses!
Yes, it is extremely strategic for managing the customer experience. In other words, it ensures a high standard of customer service and the continuous improvement of a company’s processes.
So, let's take a look at its benefits!
Are you ready? Let's go!
2. Benefits of Mystery Shopping for Businesses
For buyers, it's easy to see the benefits of mystery shopping.
After all, we’re all customers too!
So, we know how nice it is to receive excellent service and have a unique shopping experience.
And for those in sales, it’s just as easy to see. After all, a happy customer buys and spends much more!
What’s more, a satisfied customer recommends the company they love to others. And that brings a host of benefits.
Therefore, the main benefits of mystery shopping are:
- growth in revenue and average transaction value;
- increase in customer satisfaction (NPS);
- improvement in customer health metrics (LTV, or lifetime value);
- greater customer loyalty;
- and growth in new customer acquisition.
Another important point is that the cost of conducting a mystery shopping study is relatively low—especially when compared to the benefits it provides.
In other words, it offers a quick and consistent return on investment (ROI).
So, let's take a look at how this search works!
3. How Mystery Shopping Works
A mystery shopping project depends on the purpose of the research.
In other words, what the hiring company actually wants to assess.
In that case, you can ask for something very simple. For example, you could simply check whether the cashiers are informing customers about the company’s loyalty program.
Alternatively, you can request a comprehensive survey that will assess the customer journey across various sales and service channels, including audio recordings, photos, and a range of other options.
Therefore, the first step is to define the purpose of the research.
Second, we need to define the mystery shopper’s journey.
In other words, the research plan, or the step-by-step process that the researcher will follow during the evaluation.
For example, does the researcher need to schedule the visit by phone? How long should it take for the salesperson to follow up? Will they raise any objections to the price of the product or service?
Third, the mystery shopping company selects the participating researchers, trains them, and certifies that they are qualified for the study.
Fourth, the evaluations begin. And the project team monitors them all.
Once the assessments are complete, they are entered into a system. All data and information can be accessed through a dynamic dashboard.
Finally, on the dashboard, managers have access to customized charts, rankings, and individual reports for each evaluation to gain insights and guide improvement initiatives within their company.
Do you understand how this survey works?
So, let’s take a look at the main types of mystery shopping.
4. Types of Mystery Shopping
Mystery shopping for businesses can be conducted across a wide variety of sales and customer service channels.
In this regard, researchers’ approaches vary significantly across each channel. For this reason, the research is divided into three types. See below for a breakdown of these types:
- In-person mystery shopping;
- Mystery Shopper by phone;
- And Mystery Shopper online (website, social media, apps, marketplaces).
In addition, it can also use various supporting materials, which introduces a different level of difficulty. Therefore, we have categorized them as follows:
- Mystery shopping with photo documentation;
- Mystery Shopper with audio recording;
- And mystery shopping with video recording.
Interesting, isn't it?
Now it’s time to understand the main reasons for commissioning a mystery shopping study.
So, let's get started!
5. Reasons for companies to hire a mystery shopping survey
Improving customer service processes. This is generally the main reason for commissioning a survey. However, there are several indicators that point to this. So, we’ve listed the main ones, which are:
- low sales and a decline in revenue;
- loss of market share;
- a decrease in ROI (return on investment);
- increase in CAC (customer acquisition cost);
- growth below the market average;
- negative reviews and comments online;
- increase in the churn rate (a measure of customer attrition);
- a decrease in the LTV (a measure of customer health);
- an increase in the number of detractors and passives (NPS);
- and a decrease in the number of promoter customers (NPS).
Now, ask yourself if your company is going through something like this?
If you think the answer is “yes,” Mystery Shopper is a solution worth considering.
So, let’s move on to the next topic: Implementation Strategies!
This topic is crucial. Let's see why!
6. Mystery Shopping Implementation Strategies for Businesses
The goal determines the best implementation strategy!
With that in mind, it’s important to have a general idea of the most commonly used options.
Below, you will find themain options, objectives, and strategies.
“Take care of your franchisees, and they’ll take care of your customers.”
J.W. Marriott, former chairman of the board of Marriott International
a. Optimization and Standardization of Brand Processes
Ensuring standardized processes across the entire network of franchise locations. This is the goal of many franchises that use mystery shopping, as well as companies with multiple locations.
In this regard, it is worth highlighting Mister O.’s experience in the franchising sector. Indeed, some of our clients are awarded the ABF Seal of Excellence every year.
For example, the Oral Uni Franchising network of dental clinics, which received its first award in 2020.
Cool, huh?
According to Marcio Bortolli, partner and director at Oral Unic, “the Mystery Shopper program is essential for gaining insight into the franchisee’s operations, developing teams, and assessing the performance of the locations.”
This helps increase customer satisfaction with the brand and drive sales growth.
So, stop and think. Does it make sense for your business to standardize customer service processes?
If you want to learn about other ways to use mystery shopping in businesses, keep reading!
b. Improvement of sales processes
Another strategy for ensuring customer satisfaction is to improve sales processes.
This option is used by companies that sell products and services requiring greater customer engagement. Such as cars, real estate, and education, for example.
As a result, they use mystery shopping to evaluate their sales team in order to identify best practices. For example, in terms of customer engagement,sales pitches, and handling objections.
This requires close attention to the salespeople’s demeanor, friendliness, and proactiveness, from the initial contact through to closing the deal. After all, the difference is always in the details!
Isn't that right?
In addition, in these segments, investigators are also used to check whether salespeople are making offers outside the company, among other misconduct.
Next, see how you can improve your customer service processes.
c. Advances in customer service processes
In the retail and service sectors, mystery shopping is used to improve customer service. But how is this done?
It's simple: researchers interact with and observe every detail of a company's processes.
For example, they assess the staff’s demeanor and presentation. They also create scenarios to test their proactiveness and friendliness. And they ask questions to evaluate the information provided.
In addition, they assess the number of available staff members. They also time the wait time for service or in lines. Finally, they analyze the payment process.
Would it be important for you to know how your customer is being served?
Of course! That’s the only way to boost customer satisfaction, increase the time customers spend in the store or establishment, and, as a result, drive sales growth and higheraverage transaction values.
Right?
So, here’s how to use mystery shopping to guide your training!
d. Team development and training validation
This strategy is used to complement the previous ones. For example, to guide and validate employee training in customer service, sales, and after-sales teams.
In this regard, the Mystery Shopper almost always indicates that it is possible to improve a company’s results through extremely simple measures.
For example, offering a drink to a customer who orders something to eat. Or mentioning the daily special.
Actions like these lead to an increase in the average check and, consequently, in business profitability. Therefore, it is important to have a well-trained team.
Another positive aspect of the customer experience is the responsiveness, transparency, and empathy of the staff.
In that sense, when the whole team works in unison, the customer realizes how valuable they are to the company. So even if they’ve had a problem, the chances of them doing business with us again are much higher—wouldn’t you agree?
Therefore, having trained employees is an excellent strategy for building customer loyalty!
But how can you ensure that your employees are truly engaged?
There you have it: mystery shopping can help with that, too.
Check it out below!
e. Employee engagement
The best way to motivate employees is by offering a reward! Isn't that right?
So, the Mystery Shopper program can reward employees who provide excellent customer service.
It is used to observe and evaluate employee performance in accordance with the standards established by the company.
As part of this strategy, researchers observe, evaluate, and rate employee performance to ensure that it meets the company’s established standards.
And the best part is that everyone wins: the company, the researchers, and the employees.
Right?
So, take a look below to see how mystery shopping is used to delight shoppers at the point of sale!
f. Evaluation of the shopping environment
In a standard mystery shopping survey, mystery shoppers always assess the shopping environment, as it has a profound influence on the customer’s decision.
That is why mystery shoppers observe every aspect of the shopping experience to provide the hiring company with insights for improvement.
This includes factors related to the external environment, such as the location of the store or facility, security, ease of access, the store’s visibility, and the condition of the storefront.
As well as aspects of the indoor environment. For example, the structure, organization, cleanliness, amenities, capacity, and comfort of the indoor environment.
The strategy behind using the Mystery Shopper is to create a more pleasant shopping experience for the customer. By spending more time in the store, they’ll be able to buy everything they really need and want.
Do you agree?
So, let’s move on to the next implementation strategies!
g. Product launch
This strategy is widely used by cosmetics and beauty product companies.
To that end, the survey is conducted to gather feedback on the product presentation prior to its launch.
In practice, then, researchers test products such as face creams, shampoos, and other items to provide feedback on aspects such as texture, color, scent, effectiveness in delivering the promised results, and other attributes.
This feedback also helps support product sales. It also helps fine-tune marketing campaigns in terms of messaging, target audience, and competitive advantages, for example.
This way, you can ensure that the launch is a success!
And speaking of competitive advantage, did you know that you can analyze competitors using the Mystery Shopper method?
That's right! Find out how below!
h. Competitive analysis
When used in a competitive environment, mystery shopping can yield a wealth of information about the major players in the market.
This information is critical for the contracting company to establish its benchmark, set prices, identify competitive advantages, and support its market positioning.
In this regard, less comprehensive surveys tend to focus on the specifics of prices and budgets.
A comprehensive analysis, on the other hand, covers the entire customer journey across key competitors. In other words, it evaluates everything from customer service across all channels to the products, services, and overall experience.
So, would in-depth knowledge of the competition be useful in supporting your company’s strategy?
Below, you’ll find a strategy widely used in the industry!
i. POS Audit
In the industrial sector, mystery shopping is widely used to audit retail locations.
In this regard, the researchers aim to determine whether commercial contracts and marketing strategies are being properly implemented at the points of sale.
In practice, researchers assess the display of products and promotional materials at the point of sale, the implementation of marketing campaigns, and merchandising techniques, among other factors.
In this way, they help sales and trade marketing managers ensure the effectiveness of investments aimed at attracting customers at the point of sale.
And, as a result, they help boost the company's sales.
So, do you see how mystery shopping can help your business in a variety of ways?
Finally, it’s important to make one thing clear. The most interesting aspect of mystery shopping is that it supports companies’ strategies while always delivering benefits to the customer!
That's why commissioning a study like this is usually a very rewarding experience.
“People will soon forget what you said. They will NEVER forget how you made them feel.”
Dr. Maya Angelou, American poet, memoirist, and civil rights activist
Now you can say you know the Mystery Shopper Implementation Strategies!
So, let’s see what it takes to conduct a survey in practice!
7. Conducting a Mystery Shopping Survey
Conducting a mystery shopping survey involves three steps.
The first step is to conduct a needs assessment to define the research objective. The second is to design the project. And the third involves conducting the assessments and monitoring them on an ongoing basis.
With that in mind, let’s take a look at how these steps work.
Needs assessment and goal setting
In the first step, to define the research objective, it is necessary to gain a detailed understanding of the client company’s needs.
Among other things, the main points to be addressed are:
- the sections evaluated;
- the number of reviews;
- the researchers' profiles;
- the sales and customer service channels evaluated;
- supporting evidence (photos, audio, video);
- and the mystery shopper evaluation process.
At this stage, the Mystery Shoppingculto company draws on its experience to recommend best practices to the client company.
Now that these points have been established, it’s time to begin assembling the project.
Here's how it's done!
Setting Up the Mystery Shopping Project
When setting up the project, the consulting team develops the questions for the customized questionnaire based on the client company’s needs.
Next, they select participating researchers based on the company’s client profile. They then train them using proprietary materials.
And finally, they administer an online exam to certify qualified researchers.
While the project is still being set up, the team of analysts configures the system’s dashboard to facilitate the analysis of the survey results.
Now the project is finally ready to get started!
So, check out below how researchers evaluate the shopping experience!
Scoring System for Mystery Shopping Evaluations
You realize that a mystery shopping survey is highly customized, right?
So, this also applies to how a graded section is scored.
Consider, for example, the evaluation of in-person service at a clothing store.
There are several factors that affect customer service ratings. For example, appearance, friendliness, proactiveness, and wait times, right?
So, these points are the subsections evaluated in the “service” section.
But each subsection affects customers differently, don't you agree? And that varies from market to market.
Therefore, each research project has a weighted scoring system.
Interesting, isn't it? So now, take a look at how evaluations are conducted and monitored!
Project Implementation
During the implementation phase, assessments are conducted and monitored by consultants. They review the reports and validate the surveys that will be added to the dashboard.
But how does the mystery shopping company ensure the quality of the information?
At Mister O., the quality of the information is ensured by the Customer Success team, which triple-checks the questionnaires.
In this regard, the first check verifies that all fields have been filled out correctly.
The second review examines the consistency and coherence of the information provided by each researcher.
And in the third step, the reports are proofread for grammatical errors.
This is what we call the Triple Check, one of Mister O’s key selling points.
Did you like it?
So, read on to find out how we make data analysis easier for you!
Viewing Mystery Shopping Data
Many projects have hundreds of reviews and lengthy questionnaires. That’s why the best way to view mystery shopping data is through a dynamic dashboard.
At Mister O., the dashboard features cutting-edge Israeli technology. In addition, it is customized to facilitate access control, data visualization, and analysis.
For example, this allows the manager to:
- use appropriate chart types;
- analyze the results for each unit separately;
- restrict user access based on job title;
- and also provide detailed breakdowns of the scores for each section, including scores for subsections and scores for each criterion contributing to the overall score, among other features.
In short, these features enable better use of data, which is the subject of the next section.
So, keep reading!
“Building a great customer experience doesn’t happen by chance. It happens by design.”
Clare Muscutt, Executive Director, Women in CX
8. How to Use Mystery Shopping Data in Businesses
The best way to use Mystery Shopper reports is to cross-reference the data.
With that in mind, it’s best to consider this before you even commission a mystery shopping survey. That way, you can tailor the evaluations much more effectively.
And, of course, this ensures better use of the data.
At Oral Unic Franchising, for example, mystery shopper data is used to identify areas for improvement in the customer experience. It also helps refine the franchiseeexcellenceprogram.
According to Marcio Bortolli, Partner and Director, the network of premium dental clinics cross-references information from mystery shopper surveys with other CRM and BI reports, as well as the company’s internal data. This enables it to develop a strategy for continuous brand improvement.
According to Bortolli, “Mystery Shopping data is very rich. So the question is how to interpret the responses and the insights you want to draw from the survey,” he adds.
Do you understand how to make the most of the data?
So, now let’s look at how to measure the return on investment (ROI) in mystery shopping.
This part is great! Are you ready?
9. How to Measure the ROI of Mystery Shopping
Therefore, as mentioned in the previous section, cross-referencing data is key to measuring the return on investment in a mystery shopping study.
However, the cross-referenced data must come from different sources.
For example, it is useful to use NPS, revenue, and average ticket data. This makes it possible to measurethe extent to which the Mystery Shopper’s overall score correlates with performance.
This can also be done by comparing different units, or the same unit over different periods.
In this regard, it is best to conduct at least three rounds of evaluation to establish a basis for comparison.
And inMister O.'s dashboard system, you can view the progress of each store's or evaluated unit's overall rating separately.
Do you understand how to measure the ROI of mystery shopping?
So, let’s move on to the final topics: pricing; criteria for hiring a mystery shopping company; and some very useful recommendations!
Let's go!
10. Pricing a Mystery Shopping Survey
Pricing a survey isn't easy, because it's a customized solution. In other words, many factors influence the price.
So, the cost of the investment depends on the size and complexity of the project. For example:
- research objective;
- level of detail in the evaluations;
- number of surveys to be conducted;
- number of sales and customer service channels to be evaluated;
- duration of the mystery shopper's shopping trip;
- difficulty in selecting the mystery shopper profile;
- location and accessibility of the facilities to be evaluated;
- supporting evidence (video, audio, photos);
- level of dashboard customization;
- and the frequency of the project: one-time or recurring.
Indeed, there are so many factors to consider. Therefore, the best approach is to request a quote based on the company’s actual needs.
And if you want to know how to hire a mystery shopping company, read the tips below!
11. 4 Tips for Conducting a Mystery Shopping Survey
The easiest way to make a good choice is to establish comparison criteria.
But do you know what affects the quality of a mystery shopping survey?
So, here are a few tips.
First of all, a mystery shopping survey is always directly influenced by the investigators’ compensation.
So make sure researchers are well compensated.
Well, good pay is a motivator. Second, check the contractor’s experience.
Yes, experience is a very broad concept. But some key factors to consider are the number of completed projects and the complexity of the projects undertaken.
Third, evaluate the ways in which the results are presented.
Because the ability to easily visualize data and perform analyses is essential for streamlining the decision-making process.
Finally, fourth, align expectations with the contracted company, making it clear what results are expected.
So, try to understand HOW the contracted company will deliver these results. That way, you’ll be able to follow the project step by step and won’t be caught off guard at the end.
So, what do you think? Did you like the content? We hope so!
We’re here to answer any questions you may have. Feel free to leave a comment, and we’ll get back to you as soon as possible.
Mister O.conducts mystery shopping surveys throughout Brazil
For managers who strive for excellence and aim to provide the best experience for their customers, Mister O. provides top-quality data—backed by the insights gained from 3 million completed reviews.
We conduct mystery shopping surveys for companies throughout Brazil—in over 2,500 cities across all states. And we offer the most customized service on the market, using cutting-edge Israeli technology.
All of this is designed to facilitate the visualization, analysis, and utilization of the data.
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