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TOPIC - How does mystery shopping work?

Undercover shopping
Courier-News (Chicago Suburban Newspaper Group)
By Mike Sullivan

Mystery evaluators: Retailers hire companies' trained crew to rate their customer service

Some anonymous consumers who regularly enter retail stores do so with no intention of buying a thing.

What they do, however, has a measurable effect on those who come with a shopping list.

Mystery Shoppers, as the undercover per-diem workers are known, enter shops and businesses, observe the demeanor of customer service representatives and report their findings to the corporate entity that hired them.

It's an industry that has experienced double-digit growth in a year-over-year comparison.

More than 150 people representing the Mystery Shoppers Providers Association will be honing their skills at the third annual educational conference July 7-9, at Holiday Inn Select in Naperville.

John Swinburn, executive director of Dallas-based MSPA, says some of the world's largest companies regard mystery shopping as a valuable strategic tool.

The trained mystery shoppers anonymously evaluate restaurants, hotels, retail stores and other companies.

He said his mystery shoppers, all independent contractors, do not step into a retailer's shop behaving badly in order to provoke a response from a sales clerk.

"They're actually given some guidelines on specific things to observe and to record," Swinburn explained.

He acknowledged, however, that there are some situations that mystery shoppers might be asked to document, such as "an interaction" between a customer and a sales clerk in which there might be some perceived difficulty, such as when an item is returned to a store for a refund.

"Generally speaking, it's just to capture exactly what happened in an objective fashion," Swinburn explained.

He said the main role of the mystery shopper is to determine whether corporate policy is being effectively carried out at the retail level.

Mystery shoppers, for example, may observe whether a sales clerk greets customers with a smile within 30 seconds of the customer entering the store, as dictated by corporate policy.

"If that doesn't happen, it is simply noted in the mystery shopper's report," Swinburn stated.

Candidates for these positions, Swinburn said, are recruited via the company's Web site, where corporate opportunities are posted. He estimated the total number of mystery shoppers in North America at about 1 million.

Mystery Shoppers, in general, are not highly compensated, according to Swinburn. "It depends on the shop and the complexity (of the assignment)," he explained.

Some mystery shoppers, he said, may end up with a meal at a fast-food restaurant as compensation for their report on how sales transactions are handled at the restaurant. Or the mystery shopper could receive a $5 to $20 cash payment. "Generally speaking, it's certainly low compensation," Swinburn said.

He cautioned potential mystery shoppers against responding to Internet advertisements from scam artists who require candidates pay a fee to receive job information.

"That information is readily available for free on our Web site," www.mysteryshop.org ), Swinburn said.

The concept of the mystery shopper, Swinburn speculated, evolved from retailers who wanted to evaluate whether they were experiencing loss due to pilfering. "That was many years ago - possibly 50 or 60 years ago," he said.

Nowadays, employee dishonesty is handled by the retailer through a private investigator and does not involve a mystery shopper, Swinburn explained.

How mystery shoppers are recruited

Here is some information provided by the Mystery Shoppers Providers Association about how to become a mystery shopper:

• Age: You must be at least 21 years old.

• How to apply: Mystery shoppers are recruited online by so-called "member companies" that serve as human resources agencies, working with retailers who use the trained shoppers to evaluate restaurants, hotels and other companies. There is no fee.

• Pay: Member companies set fees paid to mystery shoppers and spell out the sort of information a retailer wants, i.e., whether a sales staff is courteous and helpful. Jerry Gulyes, president of a member company in South Carolina who also runs a satellite office in the Chicago suburbs, says member companies - there are about 200 of them - work out rates and standards with companies. "We take their particular standards they are looking to have measured and we work that into a format that is actually placed online," he explained.

• Job assignments: Member companies go to a database of mystery shoppers to find one in a given geographic area. "They could be housewives, college students - people that we train specifically for the assignment," Gulyes said. When an assignment in completed, the mystery shopper inputs the information at the member company's Web site. "We edit it and send it on to the client," Gulyes explained. Compensation, he said, is paid by the member company, not the retailer. Member companies pay mystery shoppers after evaluating their performance and generally cut a check for the mystery shopper within 45 days.

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