$600 million
In 2004, the latest figures available,
the U.S. mystery shopping industry generated nearly
$600 million in revenue. More than 8 million mystery
"shops" or evaluations were conducted. Revenue by industry:
| • |
Retail, $100.8 million, or 16.8 percent.
|
| • |
Banks, financial services, $85.2 million, or
14.2 percent.
|
| • |
Fast food, $84 million, or 14 percent.
|
| • |
Gas stations and convenience stores, $70.8 million,
or 11.8 percent.
|
| • |
Grocery stores, $54.6 million, or 9.1 percent.
|
Source: Industry Insights of Columbus,
Ohio, for the Mystery Shopping Providers Association
|
Who is the secret shopper?
Omaha World Herald
By Deborah Alexander
What do you notice when you go to the supermarket, dine at a
quick-casual restaurant or visit the electronics store at the
mall?
Most people may not notice the details of a retail transaction,
but for mystery shoppers, details matter.
In the check-out lane, does the cashier greet you with "hello"
and a smile?
At the restaurant, is your server's shirt clean and tucked in?
When you ask about the latest cell phones and coverage plans
at the electronics store, can the clerk explain the features?
And at the end of any of these encounters, do the employees say
"thanks" and "have a nice day"?
Maybe you don't notice such details, but there is a group of
consumers that pays attention to the fine points of a transaction.
They are mystery shoppers, independent contractors who provide
anonymous evaluations of a business's customer service, merchandise
selection, operations and product quality.
Mystery shopping is used in many industries, including retail,
restaurant and hospitality, banking and financial services, real
estate and health care.
In the United States, mystery shopping firms generated revenue
of nearly $600 million in 2004, the most recent data available,
according to the 2005 Mystery Shopping Market Size Report.
The report, the first attempt to quantify the scope of the industry,
said more than 8 million mystery "shops" or evaluations were conducted.
On-site visits are the most popular, but evaluations also can
be done over the phone and online.
Any company that provides consumer services can benefit from
mystery shopping, said David Rich, president of the Mystery Shopping
Providers Association in Dallas, the professional trade group
that commissioned the report.
"As the marketplace continues to experience new challenges and
competition, more companies are turning to mystery shopping as
a strategic business practice," Rich said in a press release.
Mystery shopping also is being incorporated into other fields.
This fall, the U.S. Education Department will launch its version
of mystery shopping to encourage exceptional customer service
in Hawaii's public school system. Project Aloha will use mystery
"shoppers" to contact administrative personnel - clerks, secretaries
and administrators - who deal with parents, students and other
members of the public.
Mystery shopping provides an unbiased view of a business from
a customer perspective, said Cory Jensen, president of I-Spy Mystery
Shoppers in Omaha, one of several such organizations in Nebraska.
Businesses have an opportunity "to see what their customers see,
the good and the bad," he said.
The 2 1/2-year-old year company evaluates restaurants and some
retailers in Omaha, Council Bluffs, Papillion, La Vista, Fremont
and Lincoln.
A business can customize the visit for specific criteria and
choose the location (if it's a chain), frequency and time, Jensen
said.
The evaluation can be "used as a training tool, as documentation
of a problem or a motivation tool for employees," he said.
Mystery shopping is a great tool for businesses that want to
serve their customers, said Tom Hershberger, president of Cross
Financial Group in Lincoln.
The 14-year-old company primarily conducts mystery shopping for
banks and a supermarket chain in an area that stretches from Florida
to Iowa. Hershberger declined to disclose the number of clients
he has.
"Mystery shopping is a marvelous marketing tool that helps management
prepare for the future," Hershberger said. "The benefits help
businesses reaffirm employees' behavior and reward them for doing
things right."
The company recruits and trains a pool of shoppers from the clients'
customer base that represents a cross section of households, said
Hershberger and his senior vice president, Steve Bors.
Bors said the company recommends monthly evaluations, but some
businesses do them quarterly.
"We encourage our clients to share the information so that all
employees can learn which things they are doing well and the things
they can improve on," Bors said.
One of Cross Financial Group's clients is American National Bank
of Fremont, which conducts quarterly evaluations of the 48 employees
at its three branch locations.
Senior Vice President Sharon Carlson said the bank started the
mystery-shopping program in the teller department and later expanded
it to the other departments.
A mystery shopper in the new-accounts department, for example,
checks to see if employees stand to greet him or her and whether
they can fully answer questions about different accounts.
In the bookkeeping department, the shopper checks if the employee
requests proper identification, uses the shopper's name during
the conversation and explains other bank services.
Employees who score 100 percent on an evaluation receive a $15
bonus, Carlson said. Those who don't receive training in deficient
areas, she said.
"It's an excellent training tool," she said. "Customers expect
more from businesses. I highly recommend it for trying to increase
customer-service skills in staff."
Pat Raybould, president of B&R Stores Inc., in Lincoln, a grocery
chain, said his company has used mystery shoppers from Cross Financial
Group for the last six years. The evaluations are used "even more
so to congratulate people who score well and do a good job. That
is the bulk of the emphasis," he said.
B&R Stores, which includes Super Saver and Russ's Markets, uses
mystery shoppers in the 19 stores it operates in Omaha, Lincoln,
Grand Island, Hastings and Columbus. Visits are conducted five
to seven times a quarter.
Raybould said shoppers look at cleanliness, customer service
and product quality. They evaluate the store employees to "see
if they are following our friendly service standards," he said.
