Best Practices in Mystery Shop Program Launch: Call to Action

In a previous post we introduced the importance of proper program launch.

Research without a clear call-to-action may be interesting but not very useful.  Best-in-class mystery shop programs build call-to-action elements into their design to ensure the results provide a clear direction.

Reading and interpreting research reports is a specialized skill.  To maximize the value of the mystery shopping, employees should be given instruction into the basic skills of interpreting a research report.  Some interpretation skills are easy, such as reading a data table which compares results across units of hierarchy (such as one store compared to another), or over specific time periods (such as one quarter to another).  Others may be a little more complicated. such as a cross-tabulation of purchase intent which is a comparison of shops where the shopper reported positive purchase intent and those where the shopper reported negative purchase intent as a result of the shop.  However reading them is the same as the comparisons of stores or quarters.  All that is needed is just an understanding of how shops are grouped for the comparisons.

Beyond instructing the frontline how to read reports, they should also be given a primer on how to take action on the results.

The most common way managers of frontline employees take action on the results is coaching.  Best-in-class mystery shop programs identify employees in need of coaching as a result of the shop, and managers should be instructed on how to use the results to coach employees.

For each such coaching opportunity, frontline managers should be given guidance on how to coach improvement, as well as online tools to log coaching, making both the employee and the manager accountable for coaching.

Additionally, managers should understand the analytical framework for maximizing the value of the program.  Best-in-class mystery shop programs build in call-to-action components designed to identify key sales and service behaviors which correlate to a desired customer experience outcome.  We call this Key Driver Analysis.

Link specific behaviors to desired outcome to identify key drivers.

Key Driver Analysis identifies the relationship between specific sales and service behaviors and a desired outcome identifying which behaviors are key drivers of this desired outcome.  For most brands, the desired outcomes are purchase intent or return or loyalty.  Building these call-to-action elements into the program helps brands identify and motivate the sales and service behaviors with the most potential for return on investment in terms of driving loyalty or purchase intent.

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Best Practices in Mystery Shop Program Launch: Program Administration

In a previous post we introduced the importance of proper program launch.

Best in class mystery shop programs provide a central point of internal administration. A central administrator manages the relationship with the mystery shop provider and coordinates with other stakeholders (such as training and human resources).

This central point of administration requires a strong administrator to keep the brand focused and engaged, and to make sure that recalcitrant field managers are not able to undermine the program before it begins to realize its potential value.

A best practice in launching a mystery shop program is to identify, to all stakeholders, the main contact for internal administration, and how to communicate with them. Along with identifying the internal administrator, in most cases, it is a best practice to also identify the mystery shopping provider – just to keep employees comfortable with the measurement process. However, in some cases, such as instances where there has been a history of employees gaming the system, it may be more appropriate to keep the mystery shop provider anonymous.

Disputed shops are part of the mystery shop process. Mystery shops are just a snap shot in time, and measure complicated service encounters. As a result, there may be extenuating circumstances that need to be addressed, or questions about the quality of the shopper’s performance that require both a fair and firm process to resolve.

The specifics of the dispute process should be aligned with the brand’s values and culture. Broadly, there are two ways to design a dispute process: arbitration and fixed number of challenges.

Arbitration: Most brands have a program manager or group of program managers acting as an arbitrator of disputes and ordering reshops or adjusting points to an individual shop as they see fit. The arbiter of disputes must be both fair and firm, otherwise, employees and other managers will quickly start gaming the system, bogging the process down with frivolous disputes.

Fixed Number of Challenges: Other brands give each business unit (or store) a fixed number of challenges in which they can ask for an additional shop. Managers responsible for that business unit can request a reshop for any reason. However, when the fixed number of disputes is exhausted they lose the ability to request a reshop. This approach is fair (each business unit has the same number of disputes), it reduces the administrative burden on a centralized arbiter, and reduces the potential for massive gaming of the system as there is a limited number of disputes.

In a subsequent post we will discuss the importance of building and communicating call-to-action elements into a mystery shop program.

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Best Practices in Mystery Shop Program Launch: Communication of Expectations

In a previous post we introduced the importance of proper program launch.

Best in class mystery shop programs clearly communicate behavioral expectations to frontline employees.  There should be no surprises in mystery shopping.

no surprises in mystery shopping

Brands have personality.  Brand personality is a set of characteristics associated with the positioning, products, price and service mix offered by a company.  Launch the program by communicating your desired brand personality.  While branding is a complicated mix of product, price, positioning and place, it often falls on the frontline employees to make the brand real in the perception of the customers – to animate the brand.  It is, therefore, critical that employees’ service behaviors be aligned with the brand personality.  Start the mystery shop program launch with a clear description of your desired brand personality.

After communication of the brand personality, the next step is to define what specific sales and service behaviors you expect from employees as ambassadors of the brand.  Create a list of behavioral expectations by asking yourself the following questions:

  • What specific service behaviors do we expect?
  • When greeting a customer, what specific behaviors do we expect from staff?
  • When meeting with customers after the greeting, what specific behaviors do we expect?
  • If a phone interaction, what specific hold/transfer procedures do we expect (for example asking to be placed on hold, informing customer of the destination of the transfer)?
  • Are there specific profiling questions we expect to be asked? – If so, what are they?
  • What closing behaviors do we expect? How do we want employees to ask for the business?
  • At the conclusion of the interaction, how do we want the employee to conclude the conversation or say goodbye?
  • Are there specific follow-up behaviors that we expect, such as getting contact information, suggesting another appointment, or offering to call the customer?
  • What other specific behaviors do we expect?

Remember the goal is to ensure employees animate the brand.  Each behavior expected should support this end.

Ultimately it is a best practice to give employees a copy of the actual questionnaire and shopper guidelines.  Best in class mystery shop questionnaires are composed of a mixture of objective behavioral observations and subjective impressions and comments.

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The objective observations of behaviors form the backbone of the program.  They measure and motivate the specific sales and service behaviors expected from employees.  These observations must be both objective and empirical, answering the question, was a specific behavior observed or not?

Rating scales are the most common means of collecting subjective impressions.  Measures of how the shopper felt about the experience.  They add both a qualitative and quantitative perspective to the objective behaviors, as well as provide a basis for interpreting their importance.

While empirical behaviors are the backbone of the shop, many of Kinēsis’ clients consider open-ended comments the heart of the shop.  Subjective open-ended questions should reveal valuable insight into understanding exactly how the shopper felt about the experience.

There should be no surprises in mystery shopping.  Customer-facing employees should understand exactly what behaviors are being measured, and how shoppers are to interpret these behaviors in terms of completing the questionnaire.

In a subsequent post we will discuss communication of program administration.

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No Surprises in Mystery Shopping – The Importance of Proper Program Launch

There should be no surprises in mystery shopping. When investments in mystery shopping fail to achieve their potential, it is often because those who are accountable for the results, the front-line employees and their direct managers, were not properly introduced to the program.

Improper positioning and introduction of the program risks creating internal resistance. Front-line personnel may interpret mystery shopping as something akin to Orwell’s Big Brother – interpreting it as a distrustful management checking up on their employees. They may see the mystery shop program solely as a means of realizing financial rewards, rather than more intrinsic rewards such as being better at their profession, and as a result game the system by frivolously disputing shops. This internal resistance often manifests itself in the form of excessive disputes, questioning everything, wasting hours of time reviewing security films, and playing a game of indentifying the shopper – almost always phantom shoppers (actual customers who are not mystery shopping them). All this internal resistance creates an unnecessary distraction from realizing the brand’s customer experience goals.

Key to launching a successful mystery shopping program is communication, positive communication of: behavioral expectations of employees, guidance regarding internal program administration, and instruction on how to use the results to improve performance. There should be no surprises in mystery shopping, surprises create resistance and kills buy-in.

no surprises in mystery shopping

Position mystery shopping as a win-win.  Position it that mystery shopping is designed to help the employee by making them better at their jobs.  Employees want to succeed.  They want to be good at their jobs.  Leverage this desire to succeed in obtaining buy-in from the frontline.

It is, therefore, critical to ensure employees throughout the organization are fully informed and have bought into the program before it is launched. Pre-launch communication should include:

  • definition of the brand
  • description of the employees’ role as ambassadors of the brand
  • list specific behaviors expected of employees (including a copy of the mystery shop questionnaire)
  • answering procedural questions of how to communicate program related issues
  • training employees how to read mystery shopping reports
  • Finally, how to use the information effectively, including and how to set goals for improvement.

Proper launching of a mystery shop program is critical to its success.  Starting on the right foot positions mystery shopping in the minds of customer-facing personnel as a positive tool to help them become better at their jobs – and offers real benefits to them both in terms of rewards as a result of the shop, but also intrinsically as it reinforces sales and service behaviors that will benefit them throughout their career.

Communication is key – again, there should be no surprises in a mystery shop program.

In a subsequent post we will discuss communication of expectations.

 

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Two Questions….Lots of Insights: Turn Customer Experience Observations into Valuable Insight

Customer experience researchers are constantly looking for ways to make their observations relevant, to turn observations into insight. Observing a behavior or service attribute is one thing, linking observations to insight that will maximize return on customer experience investments is another. One way to link customer experience observations to insights that will drive ROI is to explore the influence of customer experience attributes to key business outcomes such as loyalty and wallet share.

The first step is to gather impressions of a broad array of customer experience attributes, such as: accuracy, cycle time, willingness to help, etc. Make this list as long as you reasonably can without making the survey instrument too long.

For additional thoughts on survey length and research design, see the following blog posts:

Click Here: Maximizing Response Rates: Get Respondents to Complete the Survey

Click Here: Keys to Customer Experience Research Success – Start with the Objectives

The next step is to explore the relationship of these service attributes to loyalty and share of wallet.

Two Questions – Lots of Insight

In our experience, two questions: a “would recommend” and primary provider question, yield valuable insight into the relative importance of specific service attributes. Together, these two questions form the foundation of a two-dimensional analytical framework to determine the relative importance of specific service attributes in driving loyalty and wallet share.

Loyalty Question

Research has determined the business attribute with the highest correlation to profitability is customer loyalty. Customer loyalty lowers sales and acquisition costs per customer by amortizing these costs across a longer lifetime – leading to some extraordinary financial results.

Measuring customer loyalty in the context of a survey is difficult. Surveys best measure attitudes and perceptions. Loyalty is a behavior not an attitude. Survey researchers therefore need to find a proxy measurement to determine customer loyalty. A researcher might measure customer tenure under the assumption that length of relationship predicts loyalty. However, customer tenure is a poor proxy. A customer with a long tenure may leave, or a new customer may be very satisfied and highly loyal.

Likelihood of referral captures a measurement of the customer’s likelihood to refer a brand to a friend, relative or colleague. It stands to reason, if one is going to refer others to a brand, they will remain loyal as well, because customers who are promoters of a brand are putting their reputational risk on the line. This willingness to put their reputational risk on the line is founded on a feeling of loyalty and trust.

Any likelihood of referral question can be used, depending on the specifics of your objectives. Kinesis has had success with both a “yes/no” question, “Would you refer us to a friend, relative or colleague?” and the Net Promoter methodology. The Net Promoter methodology asks for a rating of the likelihood of referral to a friend, relative or colleague on an 11-point (0-10) scale. Customers with a likelihood of 0-6 are labeled “detractors,” those with ratings of 7 and 8 and identified as “passive referrers,” while those who assign a rating of 9 and 10 are labeled “promoters.”

In our experience asking the “yes/no” question: “Would you refer us to a friend, relative or colleague?” produces starker differences in this two-dimensional analysis making it easier to identify which service attributes have a stronger relationship to both loyalty and engagement.

Engagement Question

Similar to loyalty, customer engagement or wallet share can lead to some extraordinary financial results. Wallet share is the percentage of what a customer spends with a given brand over a specific period of time.

Also similar to loyalty, measuring engagement or wallet share in a survey is difficult. There are several ways to measure engagement: one methodology is to use some formula such as the Wallet Allocation Rule which uses customer responses to rank brands in the same product category and employs this rank to estimate wallet share, or to use a simple yes/no primary provider question.

Methodology

Using these loyalty and engagement measures together, we can now cross tabulate the array of service attribute ratings by these two measures. This cross tabulation groups the responses into four segments: 1) Engaged & Loyal, 2) Disengaged yet Loyal, 3) Engaged yet Disloyal, 4) Disengaged & Disloyal. We can now make comparisons of the responses by these four segments to gain insight into how each of these four segments experience their relationship with the brand.

These four segments represent: the ideal, opportunity, recovery and attrition.

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Ideal – Engaged Promoters: This is the ideal customer segment. These customers rely on the brand for the majority of their in category purchases and represent lower attrition risk. In short, they are perfectly positioned to provide the financial benefits of customer loyalty. Comparing attribute ratings for customers in this segment to the others will identify both areas of strength, but at the same time, identify attributes which are less important in terms of driving this ideal state, informing future decisions on investment in these attributes.

Opportunity – Disengaged Promoter: This customer segment represents an opportunity. These customers like the brand and are willing to put their reputation at risk for it. However, there is an opportunity for cross-sell to improve share of wallet. Comparing attribute ratings of the opportunity segment to the ideal will identify service attributes with the highest potential for ROI in terms of driving wallet share.

Recovery – Engaged Detractor: This segment represents significant risk. The combination of above average share of wallet, and low commitment to put their reputational risk on the line is flat out dangerous as it puts profitable share of wallet at risk. Comparing attribute ratings of customers in the recovery segment to both the ideal and the opportunity segments will identify the service attributes with the highest potential for ROI in terms of improving loyalty.

Attrition – Disengaged Detractor: This segment represents the greatest risk of attrition. With no willingness to put reputational risk on the line, and little commitment to placing share of wallet with the brand, retention strategies may be too late for them. Additionally, they most likely are unprofitable. Comparing the service attributes of customers in this segment to the others will identify elements of the customer experience which drive attrition and may warrant increased investment, as well as, elements that do not appear to matter very much in terms driving runoff, and may not warrant investment.

By making comparisons across each of these segments, researchers give managers a basis to make informed decisions about which service attributes have the strongest relationship to loyalty and engagement. Thus identifying which behaviors have the highest potential for ROI in terms of driving customer loyalty and engagement. This two-dimensional analysis is one way to turn customer experience observations into insight.

Click Here For More Information About Kinesis' Research Services

It’s Personal: Drivers of Member Purchase Intent as a Result of the Branch Experience

What do potential members want as a result of a visit to your branch?  Or, perhaps more importantly, what drives potential members to want to open an account as a result of a visit to your branch?

To answer these questions, Kinesis conducted research into the efficacy of the branch sales process and identified several service and sales attributes that drive member purchase intent.  In our observational research of 100 credit union new account presentations, mystery shoppers were asked to describe what impressed them positively as a result of the visit to the credit union.   Excluding the branch atmosphere, the five most common themes contained in these open-ended comments were:

  • Interest in Helping/ Personalized Service/ Attention to Needs,
  • Professional/ Courteous/ Not Pushy,
  • Friendly Employees, and
  • Product Knowledge of/ Confidence in the Representative

To understand the relative importance of these behaviors with respect to purchase intent, shoppers were asked to rate their purchase intent as a result of the presentation.  Kinesis used this rating to group these shops into two groups (those with positive and negative purchase intent) and compared the results of these two groups to each other.  Of these positive impressions, three have strong relationships to purchase intent. They are present with greater frequency in shops with positive purchase intent compared to those with negative purchase intent.

 

Reason for Positive Purchase Intent

Relative Frequency Positive to Negative Purchase Intent
Product Knowledge of/ Confidence in the Representative 2.7
Interest in Helping/ Personalized Service/ Attention to Needs 2.5
Friendly Employee 2.3

The representative’s product knowledge was cited 2.7 times more frequently in shops with positive purchase intent compared to shops with negative purchase intent.  Similarly, attention to needs and personalized service was present 2.5 times more frequently in shops with positive purchase intent compared to those with negative purchase intent.  Finally, shoppers were 2.3 times more likely to cite the friendliness of branch personnel in shops with positive purchase intent relative to negative.

Member experiences which focus on personal attention, interest in helping, personalized service, professional, courteous and friendly encounters drive purchase intent as a result of a visit to a credit union.

Click here for more information on Kinesis' Credit Union Member Experience Research

Maximizing Response Rates: Get Respondents to Complete the Survey

Previously we discussed ways researchers can increase the likelihood of respondents opening an email survey invitation. Additionally, in a subsequent post we discussed how to get respondents to actually click on the survey link and participate in the survey.

This post is a discussion of ways to keep respondents motivated to complete the entire survey once they have entered it.

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At its core, the key to completion rates is an easy to complete and credible survey that delivers on all promises offered in the invitation email.

Survey Length

From time to time various service providers of mine send me a survey invite, and I’m often surprised how many of them impose upon me, their customer, to complete a 30 or 40 minute survey.  First of all, they never disclose the survey length in advance, which communicates a complete lack of respect for my time.  In addition to just plain being an imposition, it is also a bad research practice.  Ten minutes into the survey I’m either pressed for time, frustrated, or just plain bored, and either exit the survey or frivolously complete the remaining questions without any real consideration of my opinions on the questions they are asking – completely undermining the reliability of my responses.  This is just simply a bad research practice, in addition to being inconsiderate of the end customer’s time.

We recommend keeping survey length short, no more than 10 to 12 minutes – in some cases such as a post-transaction survey – 5 minutes.

If research objectives require a long survey, rather than impose a ridiculously long survey on your customers producing frivolous results, break a 30 – 40 minute survey into two, or better yet, three parts fielding each part to a portion of your targeted sample frame.

Additionally, skip logic should be employed to avoid asking questions that are not applicable to a given respondent, thus decreasing the volume of questions you present to the end customer.

Finally, include a progress bar to keep respondents informed of how far along they are on the survey.

Ease of Completion

The last thing you want respondents feeling when they complete your survey is frustration.  First of all, if the sample frame is made up of your customers, the primary thing you are accomplishing is upsetting your customers and damaging your brand.  And also, creating bad research results because frustrated respondents are not in the proper mindset to give you well considered answers.

Frustration can come from awkward design, question wording, poor programming, and insufficient response choices.  Survey wording and vocabulary should be simple and jargon free, response choices should be comprehensive, and of course the survey programming should be thoroughly proofed and pretested.

Pretesting is a process where the survey is prefielded to a portion of the sample frame to test how they respond to the survey, significant portions of the questionnaire unanswered or a high volume of “other” or “none of the above” responses could signal trouble with survey design.

Convenience

Survey completion should be easy.  Survey entry should work across a variety platforms, browsers and devices.

Additionally, respondents should be allowed to take the survey on their own time, even leaving the survey while saving their answers to date and allowing reentry when it is more convenient for them.

Click Here For More Information About Kinesis' Research Services