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Category: Mystery Shopping

Gaining the Competitive Edge: Unveiling the Power of Competitive Intelligence and Mystery Shopping

Competitive intelligence and mystery shopping are two related concepts that can provide valuable insights into a company’s competitive landscape and customer experience. Let’s explore each concept in more detail:

Competitive Intelligence

Competitive intelligence (CI) involves gathering and analyzing information about competitors, their products, strategies, and market positioning. The goal is to gain a competitive edge by understanding the market dynamics and making informed decisions. CI encompasses various techniques such as market research, data analysis, and information gathering from public sources, industry reports, competitor websites, and social media.

Key benefits of competitive intelligence include:

a. Identifying market trends and opportunities: CI helps identify emerging trends, customer preferences, and market gaps, allowing companies to adapt and innovate accordingly.

b. Understanding competitor strategies: By monitoring competitors’ activities, pricing, marketing campaigns, and product launches, companies can gain insights into their strengths, weaknesses, and future plans.

c. Benchmarking performance: CI enables companies to compare their performance with that of competitors, identify areas for improvement, and set realistic goals.

d. Mitigating risks: CI helps identify potential threats, such as new market entrants, regulatory changes, or disruptive technologies, allowing companies to take proactive measures.

The Role Mystery Shopping Plays in Competitive Intelligence

Mystery shopping involves hiring individuals or agencies to pose as regular customers and assess the quality of service, compliance with standards, and overall customer experience at a company’s physical or online locations. Mystery shoppers provide detailed reports about their observations, which can help companies evaluate and improve their operations.

Key aspects of mystery shopping include:

a. Evaluation of customer experience: Mystery shoppers assess factors like employee behavior, product knowledge, store cleanliness, waiting times, and overall satisfaction. This feedback helps companies identify gaps in customer service and make improvements.

b. Performance measurement: Mystery shopping provides objective data on key performance indicators (KPIs) such as sales techniques, upselling, cross-selling, adherence to protocols, and compliance with regulations. This information helps companies assess and incentivize employee performance.

c. Competitive benchmarking: Mystery shopping can compare a company’s performance against its competitors. By conducting similar evaluations across multiple companies, businesses can identify relative strengths and weaknesses in the marketplace.

d. Training and development: Feedback from mystery shopping exercises can guide training programs to enhance employee skills, improve service delivery, and align with customer expectations.

Combining Competitive Intelligence and Mystery Shopping: Competitive intelligence and mystery shopping can be complementary techniques. Competitive intelligence provides a broader understanding of the competitive landscape, while mystery shopping offers specific insights into customer experiences. By integrating the findings from both approaches, companies can make more informed decisions, develop effective strategies, and differentiate themselves in the market.

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Customer Satisfaction Surveys: Are They Still Relevant?

You may wonder that in the age of online reviews, does a business really need to conduct customer satisfaction surveys. Between Google Reviews, Yelp, and Social Media Reviews, many companies have ditched the surveys.

Conducting customer satisfaction surveys is an effective way to understand your customers’ perceptions and experiences with your product or service. It goes way beyond an online review and when done correctly, can provide you with deeper customer insights.

Steps in Creating an Effective Customer Satisfaction Survey

  1. Define your objectives: The first step is to determine the purpose of the survey. What do you want to achieve? Are you looking to identify areas where you can improve your product or service, or are you simply looking to gauge overall satisfaction? Having a clear objective will help you create effective survey questions and analyze the results.
  2. Determine the survey method: You can conduct surveys through various methods, including email, phone, online surveys, or in-person surveys. Choose the method that best suits your audience and budget.
  3. Create effective survey questions: Your survey questions should be clear, concise, and relevant to your objectives. Avoid leading questions that may influence the response. Use a mix of open-ended and close-ended questions to gather both quantitative and qualitative data.
  4. Test the survey: Before sending out the survey, test it with a small group of customers to ensure that the questions are clear, and the survey is easy to complete.
  5. Send out the survey: Once you have finalized the survey, it’s time to send it out to your target audience. Make sure to communicate the purpose of the survey and the expected timeframe for completion.
  6. Analyze the results: Once you have collected the responses, analyze the data to identify trends and patterns. Look for areas where you can make improvements and areas where you are performing well.
  7. Share the results: Share the results with your team and stakeholders to keep everyone informed about the customer satisfaction levels. Use the insights gained from the survey to make informed decisions about product or service improvements.
  8. Take action: Finally, take action on the feedback received. Implement changes based on the feedback to improve customer satisfaction levels and retain customer loyalty.

Over the last 25 years, we have conducted a variety of customer satisfaction surveys for our clients. Contact us if you would like to learn more.

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Competitive Intelligence Advantages

When a client calls us looking to do a competitive mystery shopping project, most of the time their focus is on pricing. Once we get into the project however, they tend to learn much more about their competitors than they originally thought.

Sales Prevention

When we launch a mystery shopping project, we develop a survey with specific questions designed to gather ALL types of intelligence not just pricing. Here is a great example:

The question is “Did the representative attempt to “win” your business by asking for your business today?” For this particular program 70% of the time they did not. So our client can take a look at exactly which companies did not ask for the business. Lost opportunity? It certainly is and our client now has a better understanding of their sales process or lack thereof.

Another great sales question is, “Did the representative inquire if you are also calling for quotes from other businesses?” Using the same project as an example, this was rated negatively 100% of the time.

Poor Customer Service

How good is my competitor’s customer service? This is almost as important as getting their marketing materials and pricing. “Did the representative attempt to establish rapport with you (i.e. were they friendly, attempted to make conversation, get to know you) ?”

Along with the quantitative part of the survey, we also leave room for the mystery shopper to leave details about their experience. Here are a few examples:

I didn’t get the impression that she cared about my business or what my needs were.

I received the quote two business days after I placed the call. The prices in the written quote were different than those that I was quoted by telephone whereby I might or might not do business with this company.

The employee didn’t discuss too much due to her busy schedule. The employee said she would email me the quote.

This is an example of a B2B mystery shopping project. You can see just by looking at the data, that not all companies value customer service. Additionally, pricing quotes came in wrong, calls needed to be made to get clarification. Great information for a business!

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