Some Pitfalls to be Avoided in Strategic Management
It needs to be remembered that strategic management and strategic planning are intricate and complex processes that take the organization into unchartered territories. Hence, they do not provide a readymade prescription for success nor do they promise instant solutions to all problems that the organization is facing. Instead, strategic management and strategic planning are processes […]
Relationship Management is not a Marketing Strategy Alone
Customer Relationship management is a two way interaction. The Organisation has got to devise ways and means to reach out to the customer and more importantly receive the feedback received from the customer. There are two important aspects to be considered in a Customer Relationship Management. First is the customer interaction in terms of quality […]
BCG Matrix – Meaning and its Limitations
Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. […]
Orientation of Customers
Orientation of customer means how the customer’s preferences are possessed or in what areas of business the customers are conscious. A customer can be cost oriented, value oriented or technology oriented as discussed below: Cost Oriented Customers- A cost-oriented customer focuses on least costs products and is ready to compromise on efficacy, performance and quality. […]
Factors Involved While Deciding New Product or Service
Introducing a new product in the market requires meticulous planning and relevant ideas put together after several rounds of discussions and brainstorming sessions among employees associated with the organization. There are several factors which go a long way in deciding how and when a new product should be launched so that it is not only […]
Mystery Shopping is a fascinating method of gauging customer experience where individuals are recruited to portray actual customers that shop at a store. Feedback is then taken through these ‘mystery shoppers’ and the company uses it to evaluate how close is the actual experience of the customers to the desired one. It prompts the company to think about the areas it is lacking it and act upon them.
It is a form of primary market research that uses quantitative techniques as the mystery shopper usually has to fill out a form rating his experience. Also, this method is used for accessing services only and is not applicable to products.
In the period as early as the 1940s, mystery shopping was used for integrity and security evaluations. People were hired to go into stores and steal things! This was to check whether the staff is equipped to handle such situations. But now with advanced technology security cameras, such checks are not needed. Mystery shopping has now adapted itself and grown into a customer service oriented programme.
Currently mystery shopping is used for a wide variety of situations. Mystery Shopping is applicable, but is not limited to the following situations:
This method is used for practically all types of sales people such as real estate brokers, business development managers, etc to check their expertise and hence their worthiness.
Though mystery shopping is more popular for restaurants and retail outlets, it is also done for numerous other services such as banks, apartment buildings, cell phone providers, car dealers, health care providers, movie theatres, resorts, etc.
A step further in this evolution was the emergence of the middlemen - mystery shopping companies. Earlier organizations would hire their own mystery shoppers. However, after sometime the management and staff got familiar with the mystery shopper hired for a particular outlet since he or she would visit it frequently so the evaluation was not exactly unbiased.
Hence mystery shopping companies came into being that hire several shoppers who are randomly given assignments with different clients.
This is not full time employment; shoppers are independent contractors that are looking to earn some extra money. Shopper is paid as per the complexity of each assignment. For example, mystery shopping for a coffee shop could take typically 30-45 minutes while it could take up to 2-3 days to conduct this exercise in a hotel and hence the compensation in the latter case is much more.
Though there are no specific pre requisites for becoming a mystery shopper, people who are observant and detail oriented are preferred. Frequently, a reference check is done to check the integrity of such a shopper before hiring.
Broadly, the technique is used for evaluating a company or one of its outlets internally. The specific aspects to be measured will be as per the client’s choice. For example, one of Mc Donald’s franchisee would wish to check:
The purpose of mystery shopping is NOT to get someone fired by catching them doing something wrong. It is not to give any one a free pass either. The sole aim of the exercise is to tell the company what they are doing right or wrong and how they can improve, to simply tell them what happened as it happened.
While in person/on store check is the most widely used method, the mystery shopping exercise is also done through:
Mystery shopping is definitely an effective tool to gain insight into the customer needs and improve in areas where a company is lacking. It also helps in checking the employees’ morality and effectiveness. However, a challenge with this technique is maintaining mystery shopper quality and integrity.
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