News
Strike while the iron is cold
24 November 2008
The traditional reaction during an economic downturn is to tighten spending wherever possible. At first glance, mystery shopping may seem like a luxury that retailers can do without until things start looking up, but those that go the extra mile to understand and connect with their customers during this time will forge a much stronger position in the future.
A new study conducted by StollzNow Research reveals that the provision of outstanding service remains the number one reason why Australians recommend companies to others. Even in an economic downturn, 28 per cent of consumers will remain loyal to companies that provide them with the best service.
Commissioned by RightNow Technologies, the survey polled 500 Australian adults to investigate what impact the current economic climate would have on consumer spending and customer service. It was revealed that 79% of consumers have stopped doing business with an organisation because of a bad experience and 71% tell others about their negative customer experiences with the main aim (69%) being to prevent other consumers doing business with the company at fault.
With the prevalence of blogs and public online feedback, negative reputation can persist like a virus. Combine this with lost business and an operational burden and you will notice the impact on your bottom line, which becomes more obvious during these tough times.
Fortunately, positive feedback and recommendations from satisfied customers gives you the opportunity to seize more market share and gain customer loyalty that will place you far ahead of your competitors when the economy rebalances.
The benefits of a good mystery shopping program allows you to strike while the iron is cold, for the following reasons:
- An alternative to more large scale and expensive forms of market research. Retailers or franchisors may have a simple set of KPIs which can be measured easily without the need for a suite of high-level market research analyses. Mystery shopping can provide them with more bang for their buck and cut out reports and evaluations which may be impressive but unnecessary.
- Helps you to tune in to what your customers want. A good mystery shopping program is a cost effective way to find out if your customers are getting what they expect, and more. Mystery shoppers’ unbiased opinions about value for money can help retailers look more closely at adapting their products or services to meet customers’ changing habits.
- Helps to educate and retain staff. You can’t afford to lose good people in bad times. A holistic mystery shopping program should offer communication tools such as newsletters to recognise the achievements of high performing staff, incentive programs for motivation and coaching tips to provide guidance. These help to preserve staff morale and keep them connected and committed to excel amidst tough times.
- Supports promotional programs. Your share of voice will increase as retailers retreat from their marketing expenditure. Identifying opportunities and making improvements following the review of mystery shopping reports reinforces promotional efforts and ensures your frontline staff are prepared when customers step into your store after hearing your promises loud and clear.
- Evaluates the effectiveness of training. The economy may be stagnating, but your team must not! Training and development are essential in every business, but it can be an expensive investment. Mystery shopping ensures that you have made a wise investment in the right training provider, content etc, so you know your money is well spent.