What is Mystery Shopping? How Businesses Measure Customer Service Performance

Companies use mystery shopping to evaluate and improve the customer service their employees provide. By viewing the business through a customer’s eyes, organizations can quickly identify areas where service falls short and outline clear opportunities for improvement. Mystery shopping also helps measure key performance factors such as employee attitude, communication skills, sales effectiveness, and overall brand image.

The concept of mystery shopping dates back to the early 1940s, when it was primarily used to assess employee integrity. Since then, the practice has evolved significantly. Today’s mystery shopping programs use a variety of tools—from simple questionnaires to detailed audio and video recordings—making them effective across nearly any customer-focused industry. Retailers, hotels, financial institutions, movie theaters, and restaurants all rely on mystery shopping to gain valuable insights into the customer experience.

Many companies also use mystery shopping results to motivate employees and reinforce positive behaviors. Strong performance may be rewarded with bonuses, gift cards, or other incentives, while areas of concern can be addressed through coaching, corrective action, or targeted training. When used correctly, mystery shopping helps employees consistently meet—or exceed—company service standards.

Customer service often plays a deciding role in where consumers choose to spend their money. Positive experiences lead to repeat visits, increased spending, and word-of-mouth referrals. Poor service, on the other hand, can drive customers away and encourage negative reviews on social media.

So, how much does a lost customer really cost your business? More importantly, do you know where your service gaps are? Download our free Return on Service Calculator to measure the financial impact of lost customers—and discover the true value of delivering consistently great customer experiences.

There are many types of mystery shopping:

• Visits: A mystery shopper will visit a location and perform as a normal customer. While there, they will observe the customer service of the employee(s), making a purchase if required, inquiring about a product, etc. When performing the mystery shop, they will keep in mind the questions they will need to answer on their questionnaire.
• Phone Calls: A mystery shopper will call a location as any customer would, get information on a product service, and evaluate the employee’s overall service.
• Online/Internet/Chats: Shoppers will go to the company’s website to fill out a contact form asking a question, or email directly, if that information is provided. Then, they would wait to see what the turnaround time is to get a response. They could also click on a chat button and ask an everyday question a regular customer would ask. They can also look through the company’s website and answer questions based on how user-friendly it is, etc.
• Competitor Mystery Shops: A mystery shopper will go to the competitor of a specific business (Example: Our client is ABC Bank and they would like to know how their employee’s customer service and pricing compare to their competitors).  While there, the mystery shopper will be checking the customer service of the employee(s), making a purchase if required, inquiring about a product, etc.

Why do Competitor mystery shops?  Competitive shops should be done on a periodic basis for as long as you are in business, because it’s the most cost-effective and accurate way to evaluate how your prices and services stack up against the competition, regardless of industry.

There are many other types of mystery shopping that can be done; these are just a few ideas.  For more information, you can visit our mystery shopping page!

Shoppers, Inc.

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Mystery Shopping: mystery shoppers visit your location(s) as scheduled and perform as a normal customer. Shoppers can make purchases, inquire about your products/services, place orders, return items purchased previously, check facilities, audit procedures, etc. To learn how to set up your mystery shopping program today, click here.

Want to know more? Start by defining your customer service philosophy. Click Here to take the Free Quiz

Learn how to make your company a leader in customer service – contact Shoppers, Inc. for more information on Service Quality Institute programs.

For more information contact Amy at Amy@InsightYouCanUse.com or 800-259-8551 x220

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