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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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Behind the Customer Feedback Disconnect

customer service

I have often wondered why so many large corporations and businesses opt to spend a lot of money on annual customer feedback surveys. Are they reliable? After all, is a customer going to recall every service touchpoint over a full year and be able to provide clear, actionable answers to survey questions?

While annual customer satisfaction surveys can provide some insights, they may have limitations that can make them less effective in capturing the dynamic nature of customer satisfaction.

Top 4 Reasons Why Annual Customer Surveys May Not Work as Well

  1. Lack of Timeliness: Annual surveys only capture feedback once a year, which means that any changes in customer preferences, experiences, or satisfaction throughout the year may go unnoticed. Customer satisfaction is a fluid and evolving aspect, and relying solely on an annual survey may miss out on capturing critical feedback that could have been addressed in a more timely manner.
  2. Recall Bias: The longer the time gap between the customer’s experience and the survey, the greater the chance of recall bias. Customers may struggle to accurately recall specific details, nuances, or emotions related to their experiences from several months ago. This can lead to less accurate or biased responses, limiting the reliability of the survey results.
  3. Inability to Address Real-Time Issues: Customer satisfaction surveys conducted annually may fail to address real-time issues or emerging trends. If a problem arises shortly after the survey is conducted, businesses may not become aware of it until the next survey cycle, missing an opportunity to address customer concerns promptly and mitigate potential negative impacts.
  4. Insufficient Actionability: Annual surveys often result in a large volume of feedback that needs to be analyzed and acted upon. Processing and interpreting the data from a comprehensive annual survey can be time-consuming, leading to delays in taking action. This diminishes the effectiveness of the survey as a tool for driving immediate improvements in customer satisfaction.

Customer Are Always Evolving

Annual surveys may not generate high levels of customer engagement or response rates. Customers may perceive them as time-consuming or repetitive, leading to survey fatigue and lower participation. This can result in a smaller sample size, potentially reducing the representativeness and reliability of the survey results.

Customer expectations and preferences are constantly evolving in response to market trends, innovations, and changing industry standards. An annual survey may not capture these evolving expectations, leaving businesses unaware of emerging customer needs and unable to adapt their strategies accordingly.

Customer satisfaction is an ongoing process, and businesses that rely solely on annual surveys may miss opportunities to collect regular feedback, make iterative improvements, and proactively respond to customer needs.

Regular Feedback

To overcome these limitations, businesses can consider supplementing annual surveys with more frequent feedback mechanisms such as post-transactional surveys, real-time feedback tools, customer support interactions, or social media monitoring. These methods enable businesses to capture timely feedback, address issues promptly, and continuously enhance customer satisfaction.

HubSpot offers an excellent explanation of how to build the best customer feedback survey. Below you will see some types of surveys. This gives us an idea of the different ways in which we can conduct surveys.

In conclusion, you can never hear form your customers too much. Maybe it is time to shake things up a bit and consider some new, innovative ways to connect!

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Customer Service VS. Customer Experience

When you are in the business of evaluating customer services levels for your clients, you tend to notice the details. Walk into an ice cream store with your kids or grandkids and you are automatically in tune with the “vibe” of the store. Is there music playing? How easy/hard is it to figure out the menu options? Were you greeted when you walked in the door? How clean was the store? Were you thanked for business? All of these things play either a subconscious or conscious role in your experience.

I remember when an ice cream store chain stopped their mystery shopping service in lieu of social media reviews. Big mistake for a variety of reasons, but the lure of getting “free” customer reviews was enough for them to give it a try. They are not alone. There is actually a term for this. The “Review Economy”has created a dent in customer research. In fact many companies use it in lieu of customer satisfaction surveys.

A year later, I went in to one of the locations as a customer with my family. I witnessed a noticeable difference right away. I was never greeted. I placed my order after waiting in line and there was no upsell or cross sell at the register. Not a huge issue for an ice cream shop, right? When we found a place to sit however, I noticed how the floor beneath the table was very dirty and dusty. The table itself needed to be cleaned better from the previous guest. All things that as a major ice cream brand, it is hard to recover from. I will never go back to the store again after that visit. I will not share my findings in social media. I am the silent, unhappy customer.

Customer Service & Customer Experience: What’s the difference?

Customer service and customer experience are related but distinct concepts. Customer service refers to the support and assistance provided by a company to its customers before, during, and after a purchase. It includes the various ways in which a company interacts with its customers, such as answering questions, providing technical support, handling complaints, and resolving issues.

Customer experience, on the other hand, encompasses the entire customer journey, including all of the interactions and touchpoints a customer has with a company, from initial awareness and consideration, to purchase and post-purchase. It’s about creating a positive and seamless experience for customers across all channels and touchpoints, and ensuring that they feel valued, understood, and appreciated.

Customer Service is Part of the Customer Experience

While customer service is a critical component of the overall customer experience, it’s just one part of it. A company that provides excellent customer service can still fall short in terms of creating a positive and memorable customer experience. To truly excel in customer experience, companies need to focus on creating a customer-centric culture, understanding and anticipating customer needs, and delivering consistent and personalized experiences across all channels and touchpoints.

Forbes recently published a great article titled, “No Help is Better than Bad Help: Focusing on the Customer Experience.” They offered some great practical tips on how to provide a better customer experience. The one tip that stood out to me was to understand your customers.

Understand Your Customers

“Having a thorough understanding of the type of customers who walk through your door also aids in creating a positive customer experience. Know them, and figure out how to tailor their experiences to their needs. Being in tune with the customer goes a long way in creating an experience worth remembering.”

This for me sums up in part why a business still needs mystery shopping and customer satisfaction surveys. You can’t get this type of understanding from a social media review unless you can unmask the author behind the post. I am in favor of online reviews, but you need all of it to really understand how to develop, train and execute a good customer experience process.

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