Good Service Leads to Better Profit
We discuss the development of the "mystery shopper" service in Bulgaria and the changes in our attitudes as customers with the manager of Client X, Juliana Goranova.
When did the mystery shopper service first appear?
The "mystery shopper" service has existed since the 1940s. Business owners sought ways to obtain information on how their employees handled customer service by using acquaintances to act as mystery shoppers. Over the years, the service gained popularity, but due to a lack of appropriate tools, such research was difficult to execute.
It wasn't until the widespread adoption of the internet and rapid technological advancements in the 1990s that these studies experienced a boom. In Bulgaria, the mystery shopper service became more prominent in the early 2000s—usually, such processes reach us with a slight delay. Client X was founded in 2006 and is one of the first companies in Bulgaria specializing in the mystery shopper service.
Which sectors/businesses conduct such research?
The service applies to any business that involves interaction between a customer and an employee. This interaction can happen face-to-face, but mystery audits can also cover communication via phone, email, chat (even chatbots), and, in the past, even traditional letters.
Over the years, we have conducted mystery audits for businesses that are expected to use such research—banks, telecoms, insurance companies, car dealerships, gas stations, cinemas, grocery stores, clothing and shoe stores, restaurants, cafés, and even kindergartens. However, we have also been fortunate to participate in unconventional mystery shopper projects, such as investigating illegal fishing and trade of protected fish species, illegal puppy trade, and accessibility for people with guide dogs.
What is the purpose of mystery shopper research?
The main goal of these studies is to determine the extent to which employees adhere to established customer service standards. For these audits to be meaningful, they must be comprehensive, covering the entire network of a company's service personnel to provide a complete picture.
The research identifies service gaps so that companies know what to focus on during employee training. They can even develop customized training programs based on individual employee shortcomings. After additional training, another mystery audit is conducted to track improvements. These processes are cyclical, ensuring consistently high service standards over time.
How has mystery shopping evolved over the years?
With digitalization and especially after COVID, online services have become far more widespread. However, as mentioned earlier, mystery shopper research can be applied to any point of customer interaction—even if the employee is a robot (chatbot)! More companies now recognize the value of mystery shopper research and how they can use it to achieve real business results.
The numbers show that good service leads to higher profits—satisfied customers return and make repeat purchases, recommend the business to others, and are more likely to accept additional services or products. Companies that prioritize their customers succeed.
Unlike five years ago, companies today pay much more attention to customer experience—understanding the customer journey, identifying critical decision-making points, and recognizing what makes customers feel valued and return. Through mystery shopper research, companies gain not only quantitative performance metrics but also rich qualitative insights. These insights help them refine service standards and processes to better align with customer expectations.
Are employees penalized after a mystery shopper audit?
As members of the Mystery Shopping Professionals Association (MSPA Europe/Africa), we adhere to the ethical standards of the industry and advise our clients to use the results only as a tool for improving employee performance. Under no circumstances would we recommend firing an employee based on a single mystery shopper audit—everyone can have a bad day, and short-term performance dips are normal. On the other hand, we encourage recognizing outstanding employees, who are often rewarded with bonuses for their excellent service.
What situations can a mystery shopper encounter?
A mystery shopper must be well-prepared for the questions they may be asked or need to ask. The situation they enter should not be drastically different from their real-life circumstances to ensure authenticity and useful insights for the client. Skilled mystery shoppers must stay calm and react quickly to unexpected scenarios.
For example, one of our mystery shoppers was assigned to an audit in another city and had to provide a local address as their residence. During the audit, the employee happened to live in the same apartment building and asked the shopper about an upcoming residents' meeting. The mystery shopper responded that they had been traveling and hadn't noticed the announcement, thanked the employee for the information, and smoothly continued with the evaluation.
What are the main challenges in customer service?
Customer service issues vary by industry, but some challenges seem universal. A warm greeting, a smile, a positive attitude, and providing accurate information may seem basic, but they are fundamental to how customers perceive their experience. The best service professionals understand customer needs and make personalized offers that make customers feel valued.
Have customer expectations changed?
Customers have become far more demanding. They understand their power in the service interaction and now have clear expectations: to be treated courteously, given enough attention to determine their needs, and offered the best possible solution. Whether we like it or not, COVID disrupted and reshaped many processes. Customers now expect fast and convenient service.
The rise of digitalization and widespread smartphone use has led to an increase in remote communication and online shopping. However, many people have returned to in-person interactions and now demand the same speed and quality of service they experience online. Customers want personalized offers, and the sales process must be tailored to their needs. Companies must adapt to this trend to remain successful.