January 2000

Managing: Mystery Shoppers

Take the Mystery Out of Mystery Shopping

Even smaller retailers can take advantage of this information-gathering resource

Big companies hire mystery shoppers to provide an objective snapshot of what happens in their stores on a daily basis. While district, regional and corporate executives visit regularly, a mystery shopper adds the dimension of anonymity, "catching people in the act of being themselves," as TV host Allen Funt used to say.

When mystery shoppers enter stores, the purpose is not strictly to identify negatives; they also look for the good things that happen. Most often, they're commissioned to check:

• Implementation of policies.
• Product knowledge.
• Window or showcase presentation.
• Housekeeping standards.
• Human resources guidelines.

The resulting reports are analyzed and acted on. The results often affect managers' appraisals and bonuses, so it's clearly significant in the ongoing operation of larger retail chains. But what about "Mom & Pop's Diamond Shop"? How can a smaller operation afford to commission mystery shoppers to provide an outsider's unbiased view of their business?

As in so many other ways, Mom and Pop can compete with the big boys by following their lead, with a few minor adjustments. Instead of contracting with a major mystery shopping company – usually a relatively expensive process – find a few people unknown to your staff. Neighbors, sports buddies and church members all qualify. Perhaps most effective are business or acting students from the local college. Anyone recruited is usually flattered and looks forward to the experience. Once you find someone, here's a simple four-step process to help analyze your strengths and opportunities.

1. Prepare the Shopper

Review your goals with your "snoop." Remind the person to dress casually, act naturally and be observant but not obvious. Develop a "story" the shopper can tell about who he or she is buying for, including the relationship, appearance, occupation, taste and interests, as well as the occasion, gift category and perhaps a price range. Have a questionnaire prepared for the shopper to complete immediately after his or her visit (see examples on the next two pages).

2. Carry Out the Exercise

Have your shopper go to the store at an appropriate (non-busy) time. He or she may or may not buy something –  that's up to you –  but should act like a regular customer. Most clients are not "the customer from hell" and neither should your mystery shopper be.
As soon as the shopper leaves the store, he or she should find a bench or coffee shop and sit down to complete the questionnaire.

3. Debrief the Shopper

Meet with your shopper as soon as possible to review the questionnaire. Keep an open mind and don't be defensive about any negative information; any opportunities he or she might identify are just those – opportunities –  and that's the purpose of the exercise. Next move onto Step 4, the most
important one.

4. Act on the Opportunities

Use the information to improve your business. Call a staff meeting and share the input from the mystery shopper. Create a game plan to reinforce the positives and correct the issues that provide opportunities for improvement. Once you've implemented the changes, invite a new shopper in and start the process again.

– by Christine Anzell & Jack Levenson

To order Anzell & Levenson's copyright jewelry-specific client record-keeping book or sales-training manual, see their ad in Professional Jeweler's Marketplace (p. 166) or call (800) 887-8902.

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