Employing a Mystery Shopping Company: Everything You Need to Know
Mystery shopping is an effective and widely-adopted method for verifying that customer experiences meet or exceed established standards.
Businesses that partner with mystery shopping agencies get the data and insights that can help drive improvements in customer service, enhance employee engagement, maintain compliance, and boost their bottom line.
However, not all agencies are equal, and there are some considerations to bear in mind when it comes to choosing which mystery shopping company to work with.
In this article, we define mystery shopping, look at how agencies operate, and detail the costs and benefits of partnering with a mystery shopping company.
What to Look for in a Mystery Shopping Agency.
Experience
Look for companies with experience that is relevant to your sector, and ask for case studies and testimonials. Check they are members of the Mystery Shopping Professionals Association (MSPA), as they have to meet strict criteria – including longevity – and uphold the Code of Professional Standards and Ethics.
Data that delivers
There is no point carrying out a mystery shopping initiative if you can’t use the data it generates. The information from the reports should be presented in a way that is easy to digest. Dashboards should be easy to use and provide you with up-to-date information on how your company is performing. Agencies should also take measures to ensure that the data they provide is as accurate as possible.
Robust recruitment and deployment procedures
The most important element of any agency are the people it employs to carry out assessments. The Brand Agents they employ should be well-trained and well-supported.
Recruitment processes should be rigorous, and the company should have a large enough pool of agents, of sufficiently diverse demographics, to find the right person for each task. This ensures companies are provided with secret shoppers who match their target audience.
Proof of concept offerings
Most mystery shopping agencies will offer a small pilot project as a proof of concept. This is essentially a trial period, where you can assess whether the agency is a good fit for your needs, and whether the insights it provides are meaningful for your brand.
What Should Be Included in a Mystery Shopping Audit?
Essentially, anything can be included in a mystery shopping audit, and in our 35 years in the business, we’ve had just about every request you can imagine. As a result, most initiatives are individually tailored to the specific needs of each company.
In order to understand what to measure, a business must first define its customer experience and company values, and then find metrics that measure the alignment between desired and actual experiences. Brand experience research shouldn’t be an exercise in ‘gathering feedback’, it should be the building blocks toward a tangible business improvement strategy.
MYSTERY SHOPPING AUDITS
Customer Service
- How quickly are customers seen?
- How long are customers left waiting?
- Are staff actively listening to requests and concerns?
- Are staff approachable and engaged?
- Are all staff appropriately dressed?
- Are staff in uniform?
- Are staff well-groomed?
- Does staff attire align with dress code policies?
- Are sales techniques high pressure?
- Is the information transparent?
- Are salespeople focusing on the needs of the customer rather than their own commission?
- Are customer concerns handled in an understanding way?
- How quickly are the support team able to find a resolution?
- Was the resolution appropriate for the complaint?
- Are staff empathetic?
- Are follow-ups carried out?
- Are additional products and services offered?
- Are they appropriate for the interaction?
- How forcefully are these add-ons sold?
- Are the benefits clearly articulated?
Employee Engagement
- Are the employees happy in their work?
- Do staff appear engaged during customer interactions?
- Do they see their longer-term career in the company?
- Are staff knowledgeable about the products they are selling?
- Are they able to provide suitable recommendations?
- Are staff aware of current promotions?
- Are staff aware of the brand identity?
- Can staff identify company values?
- Are interactions in keeping with the brand personality?
Standards
- Are the restrooms clean?
- Has the cleaning log been updated?
- Do the toilets flush properly?
- Are the sinks functional?
- Is there toilet paper and soap available?
- Are there any signs of damage?
- Are promotional materials displayed?
- Are they placed in appropriate positions?
- What are the levels of upkeep and maintenance?
- Are customer-facing areas clean?
- Are advertised products on display?
- Is there a range of sizes available?
- Are plus-sizes catered for?
- How effectively do staff handle stock availability enquiries?
- Are there any stock outs?
- Are prices consistent across locations?
- Have price reductions been carried out?
- Are prices as advertised online?
Brand Identity
- Is the way staff interact with customers in keeping with brand personality?
- Are interactions using the same brand voice on all channels?
- Are interactions coherent across all touchpoints?
- Is the lighting appropriate?
- Is the temperature of the store suitable for the target audience?
- Does the music genre fit with the brand identity?
- Is the volume too quiet or too loud?
- Does the imagery match brand guidelines?
- Is it up to date?
- Is the color scheme appropriate for the business?
- Is the employee dress code in keeping with the brand identity?
Compliance
- Are ID checks carried out for age-restricted products?
- Are background checks conducted for firearms sales?
- Are financing options fully explained?
- Is there access for disabled customers?
- Do staff follow customer privacy procedures correctly?
- Are franchise guidelines being adhered to?
- Are promotions consistent across locations?
- Are customer service standards being upheld?
- Does the presentation align with visual guidelines?
- Is anti-discrimination legislation being adhered to?
- Does the job advertisement accurately reflect the actual role and responsibilities?
- Are the interviews conducted in a professional manner?
- Are the interview questions appropriate for the role?
- Are aisles clear of obstacles?
- Are there any trip hazards?
- Are emergency exits clearly marked and unobstructed?
- Are employees using the correct protective clothing?
- Are appropriate warning signs on display?
Business Intelligence
- How do customer satisfaction levels compare to your rivals?
- What is your position within the marketplace?
- Are there developments or innovations in the sector that your competitors are utilizing and you aren’t?
- Are the products or services meeting the needs of your target market?
- How do customers perceive your brand?
- What values do they associate with your brand?
Customer Service
Staff Attentiveness
- How quickly are customers seen?
- How long are customers left waiting?
- Are staff actively listening to requests and concerns?
- Are staff approachable and engaged?
Staff Appearance
- Are all staff appropriately dressed?
- Are staff in uniform?
- Are staff well-groomed?
- Does staff attire align with dress code policies?
Ethical Sales Practices
- Are sales techniques high pressure?
- Is the information transparent?
- Are salespeople focusing on the needs of the customer rather than their own commission?
Complaint Handling
- Are customer concerns handled in an understanding way?
- How quickly are the support team able to find a resolution?
- Was the resolution appropriate for the complaint?
- Are staff empathetic?
- Are follow-ups carried out?
Upselling and Cross-Selling
- Are additional products and services offered?
- Are they appropriate for the interaction?
- How forcefully are these add-ons sold?
- Are the benefits clearly articulated?
Employee Engagement
- Are the employees happy in their work?
- Do staff appear engaged during customer interactions?
- Do they see their longer-term career in the company?
- Are staff knowledgeable about the products they are selling?
- Are they able to provide suitable recommendations?
- Are staff aware of current promotions?
- Are staff aware of the brand identity?
- Can staff identify company values?
- Are interactions in keeping with the brand personality?
Standards
- Are the restrooms clean?
- Has the cleaning log been updated?
- Do the toilets flush properly?
- Are the sinks functional?
- Is there toilet paper and soap available?
- Are there any signs of damage?
- Are promotional materials displayed?
- Are they placed in appropriate positions?
- What are the levels of upkeep and maintenance?
- Are customer-facing areas clean?
- Are advertised products on display?
- Is there a range of sizes available?
- Are plus-sizes catered for?
- How effectively do staff handle stock availability enquiries?
- Are there any stock outs?
- Are prices consistent across locations?
- Have price reductions been carried out?
- Are prices as advertised online?
Brand Identity
- Is the way staff interact with customers in keeping with brand personality?
- Are interactions using the same brand voice on all channels?
- Are interactions coherent across all touchpoints?
- Is the lighting appropriate?
- Is the temperature of the store suitable for the target audience?
- Does the music genre fit with the brand identity?
- Is the volume too quiet or too loud?
- Does the imagery match brand guidelines?
- Is it up to date?
- Is the color scheme appropriate for the business?
- Is the employee dress code in keeping with the brand identity?
Compliance
- Are ID checks carried out for age-restricted products?
- Are background checks conducted for firearms sales?
- Are financing options fully explained?
- Is there access for disabled customers?
- Do staff follow customer privacy procedures correctly?
- Are franchise guidelines being adhered to?
- Are promotions consistent across locations?
- Are customer service standards being upheld?
- Does the presentation align with visual guidelines?
- Is anti-discrimination legislation being adhered to?
- Does the job advertisement accurately reflect the actual role and responsibilities?
- Are the interviews conducted in a professional manner?
- Are the interview questions appropriate for the role?
- Are aisles clear of obstacles?
- Are there any trip hazards?
- Are emergency exits clearly marked and unobstructed?
- Are employees using the correct protective clothing?
- Are appropriate warning signs on display?
Brand Intelligence
- How do customer satisfaction levels compare to your rivals?
- What is your position within the marketplace?
- Are there developments or innovations in the sector that your competitors are utilizing and you aren’t?
- Are the products or services meeting the needs of your target market?
- How do customers perceive your brand?
- What values do they associate with your brand?
The Key Performance Indicators (KPIs) that will be measured should be clearly identified and effectively conveyed, so that the mystery shopping agents who will carry out the evaluations understand what they are assessing.
How Much Does Mystery Shopping Cost?
The pricing of secret shopping contracts will depend on the size and scope of the audit being performed. Implementation fees can range from $500 to $3500, and the cost per audit can vary from $30 to $175, depending on the scale and complexity of the assignments.
That said, Mystery Shopping assessments should not be considered a one-off investment, rather as an ongoing process that is periodically refreshed and updated to reflect changes in buyer behaviors and demands.
What Are the Benefits of Partnering With a Mystery Shopping Agency?
Unique expertise and specialization
Mystery shopping agencies specialize in assessing interactions between a business and its customers, however and whenever they happen. Agencies can draw on an army of specially trained Brand Agents, who can perform secret shopping visits to a far higher standard than internal staff ever could.
As a result, companies receive far more accurate information on how their operations are impacting on customer experience. This means they are making decisions based on firm foundations, enabling them to evolve their practices and improve their position within the marketplace.
Informed and unbiased perspective
When you commission mystery shopping services, you get a perspective on your operations which is informed, unbiased and unvarnished.
Many companies conduct on-site visits to assess the quality of the service they provide. Managers, usually above branch level, evaluate factors such as the appearance of premises, availability of product range, and staff knowledge. Compliance managers will also conduct on-site audits to check that staff are following protocols and that records are being kept up to date.
However, these internal audits are at risk of being influenced by figures within a company who have something to lose from any negative feedback. Staff are also more likely to be aware they are being monitored with internal audits, as it’s far more likely they’ll recognize the person auditing them, and adjust their behavior accordingly.
Bad news travels fast, and branches will often be warned in advance of an internal audit. This allows them to prepare for their VIP guests and present their site in the best light, rather than in a way which is a true reflection of what the average customer sees.
With an external assessor, this is no longer an issue. There is no value to an agency in providing skewed data.
This means their evidence-based insight and feedback can be relied upon as an accurate reflection of the business when viewed from the outside. Agency evaluations, in effect, raise a mirror up to the company, and allow stakeholders to make decisions based on the impartial view they are given.
Scalability
In addition to the issues of bias, internal audits are also naturally limited in scope. Managers can’t be everywhere at once, and they may lack the language skills to effectively evaluate their customer-facing operations globally.
This is not the case with mystery shopping agencies. For example, SEC has over 600,000 brand agents in over 90 countries. This means that we have the capacity to audit over 1,000 stores across the globe in a week, giving organizations a company-wide ‘snapshot’ of its performance that would be near impossible to replicate with internal audits.
600,000+ Brand Agents
in 90+ countries
with the capacity to audit 1000+ stores in a week
How Do Brands Benefit from Mystery Shopping Initiatives?
Improve customer experience and retention
Many of the KPIs Mystery Shoppers audit directly impact customer experience, with significant benefits for both acquisition and retention. 60% of consumers will purchase from brands where they expect to receive good customer service, and 73% will switch to a competitor after negative experiences.
Enhance employee engagement and job satisfaction
Mystery Shopping companies can conduct employee surveys and interviews to gauge employee sentiment and identify areas of concern. Greater job satisfaction reduces employee churn, which then reduces training costs for onboarding, and is also a key factor in improving customer experiences.
When staff feel valued, they are more invested in the success of the company, and this translates to better service. Reduced staff turnover means people are in positions for longer, and are more knowledgeable as a result. This means that customers get better information and more appropriate recommendations. Staff will also be able to build up longer term relationships with regular or repeat customers.
Increase the effectiveness of promotional campaigns
Agencies can assess employee knowledge to ascertain how effectively messaging and policies have been rolled out. Mystery Shopping audits ensure that higher level initiatives, such as upselling and cross-selling, are being actioned in a consistent manner.
Promote customer-centric approaches
When companies partner with mystery shopping agencies, it sends out a message to the entire organization that the brand is investing in CX. Customer service levels will often improve simply as a result of announcing the partnership with an agency, as staff will be aware that their performance is being evaluated and any customer could potentially be a secret shopper.
Mystery shopping agencies produce data which feed into monitored KPIs (Key Performance Indicators). These metrics allow companies to assess how well they are delivering on their customer satisfaction targets. By making these KPIs central to performance evaluation and performance-based bonus payments, companies can ensure that both customer-facing and support teams pull together to achieve these goals
Improve product and service design
By getting an insight into what prospective buyers want and expect, businesses can tailor their products, services, and interactions to meet those needs. Greater alignment leads to a more cohesive brand identity and better brand recognition. Over time, this leads to increased buyer satisfaction and loyalty.
Ensure compliance
All businesses are subject to rules and regulations that govern how they operate, which come with serious repercussions for non-compliance. For example, staff have to check ID for sales of age-restricted products such as tobacco or alcohol, and franchisees have to comply with the guidelines set down by parent companies. Mystery shopping agencies can evaluate compliance, helping companies to identify shortcomings before they become more serious issues.
Detailed knowledge of industry benchmarks and best practices
A reported 94% of businesses already invest in competitive intelligence, and mystery shopping offers an excellent means of scouting out rivals. Agencies can compare a business’s performance relative to industry standards, competitors, case studies, and other successful customer-centric brands.
Benchmarking in this way helps to identify areas where the business excels or lags. This provides insight as to what strategic changes could be made to improve or enhance these areas.
In addition, by measuring multiple KPIs impartially, agencies can give businesses a solid grasp on their current situation, allowing them to make project management and strategy decisions from a solid foundational base.
Boost revenue
Put in simple terms, brands that provide better customer experiences generate up to 5.7x more revenue than their competitors.
Final Thoughts
Partnering with the right mystery shopping agency can be a game-changer for companies seeking to enhance their customer experience, improve operational efficiency, and drive revenue growth. By leveraging the expertise and resources of a reputable agency, companies gain access to invaluable insights and data-driven solutions that would be near impossible to obtain through internal audits alone.
Ultimately, the decision to partner with a mystery shopping company should be viewed as a strategic investment in the long-term success of the business. By embracing the power of impartial assessments and actionable insights, companies can foster a culture of continuous improvement, strengthen their brand reputation, and cultivate lasting customer loyalty.
Over the last 35 years, Service Evaluation Concepts have helped companies of all sizes and sectors to strengthen their brands and grow their business. We draw on the expertise of over 600,000 Mystery Shopping Agents in more than 90 countries, and offer made-to-measure services that deliver meaningful and actionable insights.
- How quickly are customers seen?
- How long are customers left waiting?
- Are staff actively listening to requests and concerns?
- Are staff approachable and engaged?
- Are all staff appropriately dressed?
- Are staff in uniform?
- Are staff well-groomed?
- Does staff attire align with dress code policies?
- Are sales techniques high pressure?
- Is the information transparent?
- Are salespeople focusing on the needs of the customer rather than their own commission?
- Are customer concerns handled in an understanding way?
- How quickly are the support team able to find a resolution?
- Was the resolution appropriate for the complaint?
- Are staff empathetic?
- Are follow-ups carried out?
- Are additional products and services offered?
- Are they appropriate for the interaction?
- How forcefully are these add-ons sold?
- Are the benefits clearly articulated?
- Are the employees happy in their work?
- Do staff appear engaged during customer interactions?
- Do they see their longer-term career in the company?
- Are staff knowledgeable about the products they are selling?
- Are they able to provide suitable recommendations?
- Are staff aware of current promotions?
- Are staff aware of the brand identity?
- Can staff identify company values?
- Are interactions in keeping with the brand personality?
- Are the restrooms clean?
- Has the cleaning log been updated?
- Do the toilets flush properly?
- Are the sinks functional?
- Is there toilet paper and soap available?
- Are there any signs of damage?
- Are promotional materials displayed?
- Are they placed in appropriate positions?
- What are the levels of upkeep and maintenance?
- Are customer-facing areas clean?
- Are advertised products on display?
- Is there a range of sizes available?
- Are plus-sizes catered for?
- How effectively do staff handle stock availability enquiries?
- Are there any stock outs?
- Are prices consistent across locations?
- Have price reductions been carried out?
- Are prices as advertised online?
- Is the way staff interact with customers in keeping with brand personality?
- Are interactions using the same brand voice on all channels?
- Are interactions coherent across all touchpoints?
- Is the lighting appropriate?
- Is the temperature of the store suitable for the target audience?
- Does the music genre fit with the brand identity?
- Is the volume too quiet or too loud?
- Does the imagery match brand guidelines?
- Is it up to date?
- Is the color scheme appropriate for the business?
- Is the employee dress code in keeping with the brand identity?
- Are ID checks carried out for age-restricted products?
- Are background checks conducted for firearms sales?
- Are financing options fully explained?
- Is there access for disabled customers?
- Do staff follow customer privacy procedures correctly?
- Are franchise guidelines being adhered to?
- Are promotions consistent across locations?
- Are customer service standards being upheld?
- Does the presentation align with visual guidelines?
- Is anti-discrimination legislation being adhered to?
- Does the job advertisement accurately reflect the actual role and responsibilities?
- Are the interviews conducted in a professional manner?
- Are the interview questions appropriate for the role?
- Are aisles clear of obstacles?
- Are there any trip hazards?
- Are emergency exits clearly marked and unobstructed?
- Are employees using the correct protective clothing?
- Are appropriate warning signs on display?
- How do customer satisfaction levels compare to your rivals?
- What is your position within the marketplace?
- Are there developments or innovations in the sector that your competitors are utilizing and you aren’t?
- Are the products or services meeting the needs of your target market?
- How do customers perceive your brand?
- What values do they associate with your brand?
CEO & Managing Director of Service Evaluation Concepts. Dedicated to driving brand experience forward with the tools that ensure the reality in the the customer corridor is aligned with the promoted brand value proposition.
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