How do you measure the ROI (Return on Investment) of a mystery shopper project?
This is a question many professionals have. And to answer it, we’ve written this article.
The ROI formula
There is a general formula for calculating ROI, which can also be used to calculate the return on a mystery shopper project. The formula is as follows:
ROI = [Revenue (R$) – Investment (R$)] / Investment (R$).
It can also be used to measure the results of a mystery shopper program. But how can it be applied to measure the results of a mystery shopper survey?
Applying ROI to a Mystery Shopper Project
Nothing beats an example to illustrate this point. Take a look below: 👇🏼
Example
1. Let’s say you’re the manager of a chain of stores that generates an average of R$ 1 million in revenue per month.
The amount of the "Investment"
2. To improve the customer experience and, of course, boost sales, you commission a mystery shopper project. The investment is R$50,000.
Note: A comment is in order here. Mystery shopping is always part of the solution. It identifies flaws in your company’s processes, but it does not fix them. Therefore, you need to implement an Action Plan to correct the flaws identified by the mystery shopping project.
So, let's get back to our example!
3. Once the surveys are complete, you will receive a presentation of the results, highlighting the issues that need to be addressed within your company. Based on this, you will develop an Action Plan, which includes redesigning internal processes and training customer service teams. The investment amounts to over R$ 50,000.
☝🏼 When calculating ROI, the total “investment” amounts to R$ 100,000 (mystery shopper + action plan).
Great, half of our calculation is done. Now we just need to figure out the "Revenue" figure.
What amount should be entered as "Revenue" when calculating ROI?
4. After implementing the action plan, your stores’ average revenue increases by 10% due to improvements in the customer shopping experience (well-organized stores, salespeople who are friendlier, more proactive, and better prepared, shorter wait times at the checkout, etc.). In other words, your company began generating an average of an additional R$ 100,000 per month after carrying out the mystery shopper project and the action plan.
🤔 But here’s something unique about undercover projects (pay attention).
Since the benefits it provides are long-lasting, it is necessary to specify a time frame for calculating the ROI.
💡 So, let’s calculate the ROI for the 6 months following the implementation of the Action Plan. In this case, the “Revenue” figure is R$ 600,000 (R$ 100,000 per month, multiplied by 6 months).
✌🏼 All right, now we have all the information we need to calculate the ROI of the Mystery Shopper.
Calculating the Financial Return on the Mystery Shopper Program
As a reminder... “ROI” = [Revenue (R$) – Investment (R$)] / Investment (R$).
💰 “Revenue” = R$ 600,000
🌱 Investment = R$ 100,000
ROI (Mystery Shopper) = [R$ 600,000 - R$ 100,000] / R$ 100,000
👀 ROI (Mystery Shopper) = 5 (or 500%)
🤝🏼 In other words, in our example, the results obtained through the mystery shopper survey were five times the amount invested.
Check out one of our success stories!
And if you think we’re exaggerating in this example, check out this success story of ours 👉🏼 “With mystery shoppers, a school franchise increases enrollment by up to 150%”
That's a cool case, isn't it?
Well, if you have any other questions about mystery shopping, leave a comment below!
I would be more than happy to help you.
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