Retail in Asia

In Shops

Taking Stock: How to improve your shop’s performance with Mystery Shopping

For many retailers in Asia Mystery Shopping remains just that: a mystery. Started in the 1940’s in the west, it was used primarily in banks and retail stores to assess the integrity of the employees working there. As Mystery Shopping is predominately a new and growing trend in the region, Retail in Asia takes time to talk with Jan Smulders, CEO and founder of AQ Services International, about Mystery Shopping programmes and how it can lead to improvements in shop and staff performance.

 

RIA: Can you talk us through how Mystery Shopping works?

JS: The activity basically involves sending an anonymous shopper to retail outlets of brands that deal with consumers on the shopfloor. They pretend to be normal customers going through a normal retail process, and then they report back to the research manager with all the details about how the retail experience went. Companies that wish to monitor and improve their services and performances can learn how they can improve their performances by the results of these surveys – how their customers are welcomed, how their staff members discover needs, how they fulfil needs. Companies can use Mystery Shopping as a tool to check, for instance, on their customer services, merchandising, pricing and selling skills.

 

RIA: How does the process work?

JS: Our Mystery Shopping programme provides very speedy feedback to our clients via an online system that we have refined for each market. Firstly we set questions or standards in cooperation with our clients and these will vary for company to company. For instance, standards for an apparel retailer compared to a technology retailer will be very different.  We also set up profiles for our clients – what type of mystery shoppers do they need? What are the demographics of the customers required? What are the processes the retailer needs to review and resolve? Finally, we create scenarios for shoppers to follow – how long should they stay there, who they should speak to, should they show passive behaviour or be proactive, etc. From this we individually select the right shoppers from our database,  invite them to participate and guide them through training. Within 24 hours of them conducting their Mystery Shopping visit, the shoppers report back to us with their observations and objective answers. Our business managers will review this feedback to verify its quality. The report will be sent directly to clients and their branches within 48 hours; ensuring the data is "fresh".

 

RIA: How do you recruit mystery shoppers?

JS: We manage over 18,000 mystery shoppers in the region. That pool grows every day as their friends and family join our circle. But in very remote locations where we don’t have strong coverage we use online methods – as we also need secret shoppers to have internet. Therefore, one of our most successful ways to recruit mystery shoppers is through online advertising and social media such as Facebook. Our online portal, where our shoppers can apply for jobs and get their training materials and surveys, allows shoppers to login and process their results within 24 hours. With this tool, our business managers can gather the information very efficiently and return it to the retailers in almost actual time.

 

RIA: What is the attitude towards Mystery Shopping in the Asian market? Do Asian retailers have different needs than those in the European market?

JS: Increasingly Asian retailers are recognising the need for insightful and professional tools to manage the variables of their front-line staff. They are starting to see it as an internal investment, and in places like China we are seeing an overnight increase in the amount of retailers interested in using this method. Of course there are always some managers or staff who reject the programme, but this can be changed if you communicate with them properly.

Generally speaking, we are seeing that companies in the Asian market are more focused on driving efficiency, opposed to companies in Europe who are focused on standards of hospitality.

 

RIA: What markets do you run the Mystery Shopping programme?

JS: Originally from Europe, AQ Services started running its Mystery Shopping programmes in 2001 and are now in 14 countries in the Asian market, including Singapore, Malaysia, Hong Kong, China and Japan. I believe we are the only company offering regional coverage with local servicing and mystery shoppers in Asia. And since every step of our procedure is web-based, we are fast and competitive which is why we have a lot of regional clients.

 

RIA: What do retailers do with this information once a mystery shopper report comes in?

JS: We actually deliver more than just Mystery Shopping data; we also provide information and services to help them build on the information to return efficiencies and ultimately increase their sales and bottom line. Without this help, clients get the data from Mystery Shopping but then often do not have the resources to implement actions and improvements. To me, it is like throwing away money. This is why when retailers do undertake a Mystery Shopping programme they need to ensure they are also being provided the follow-on services such as coaching of frontline managers, incentive programs, roadshow training sessions, and so on. We feel this is vital to Mystery Shopping and AQ ensures that the clients not only understand the data, but that they use it to improve their business. Additionally, we analyse the data, provide suggestions to clients, as well as brainstorm with them, inform them what is happening within their retail space and what can be changed. All of this ensuring we involve as many departments in the process, not just the front-line staff; including marketing and sales, operations and training departments.

 

RIA: What are the top three suggestions for retailers who are new to Mystery Shopping or who are considering it?

JS: Most importantly, start it now – either with an external company or by yourself. There is always a bunch of excuses for why you should not do it, but no matter what level, once you start Mystery Shopping, you will see immediate benefits. Retailers will be aware of what they can improve with the feedback. It keeps them on their toes and allows them to be constantly asking themselves how thy can improve their services.

Secondly, keep it simple, actionable and positive. Do not build in a thousand and one standards. Do not develop an overly detailed programme with long training sections, because people will not remember. They will forget it within days.

Thirdly, make sure the external supplier you are going to work with is a qualified and an experienced mystery shopping specialist that can show return on investment. This is because there is no entry barrier for businesses. Do reference checks. Check their quality procedures. Make sure they are members of relevant associations. For instance, the most relevant association would be the Mystery Shopping Providers Association (MSPA).

 

Taking Stock is Retail in Asia’s column dedicated to showcasing opinions and providing advice from experts in the retail industry.