In a deep dive into mystery shopping trends of 2023, the first topic we are here to discuss is why it is becoming more popular to use mystery shopping for competitor research. What data can be gathered and how to offer such a service to clients (from the mystery shopping agency’s standpoint)? Let’s discuss.
Why using mystery shopping for competitor research is getting popular?
Recently, customer experience is all rage. Rightfully so, check out the newest statistics:
76% of respondents say they would switch to a company’s competitor due to multiple bad customer service experiences.
61% say that they would switch to a company’s competitor after just one bad customer experience.
In light of such numbers, brands decided they need to
a) drastically improve their CX research, and dedicate more time to fixing the issues;
and b) perform competitor research to learn what they do wrong, and what annoys their audience, and, consequently, will become a point of customers ditching said competitor. And all that’s left from there is to make sure the brand doesn’t repeat the same mistake.
Mystery shopping comes into play here. A lot of companies start hiring shoppers to check on competitors and learn how they can benefit from their mistakes. Such mystery shopping campaigns allow the client to observe the competitors in action, selling their products and services.
What can your clients find out using mystery shopping for competitor research?
Why the brand is losing clients and sales
Hiring mystery shoppers can help to see why competitors have a better market share, and why they may be doing better in sales. Remember, we are not talking about the physical stores. Mystery shopping is an excellent tactic for online-only brands. Being able to go the full journey from contacting the competitor to finishing the deal, may help to clarify what they are doing differently. Knowledge is power, and from there they can develop actions to counteract competitor activities to regain market share and industry reputation.
What can be the selling points
As competitors, you offer similar features/products/services. Using mystery shopping it is possible to see what selling points the competitor defined – were they different from the ones your clients may pinpoint? If the competitor’s sales are regularly higher, it’s wise to review how they position their products on the market, and if this is the reason for better profitability.
How to improve the customer journey
How flawless and smooth is the competitor’s customer journey? And how is your client’s? Check for any bumps on the road, while especially focusing on the interaction between the customer sales representative. What sales tactics do they implement? See what information your clients may find useful.
What are the issues & what to avoid
Last but not least, their flaws are your client’s gateway to success. Major mishaps, security flaws, and bumps on the customer journey may cause irritation, annoyance and later skipping to another product.
For example, recently Netflix announced their same location password policy, which made millions of people angry. Thousands of them didn’t even wait for the feature to roll out, they opted out and changed their subscription to another streaming service. If it was ten years ago, probably, Netflix may have gotten away with such a feature. However, today they have powerful competitors, tens of them, and people can easily choose another one that doesn’t get on their nerves.
This is precisely why it is so important to know competitor’s flaws and make sure you do not repeat them.
Does your client’s competitor have a security vulnerability? Then your clients can benefit from stressing that their platform has top-tier data safety. Bad UI? – Top-notch intuitive design. Bad customer service? – The most polite help customers can ever find. Or, even, something as trivial as offering a customer service option that is not represented by their competitor.
93% will spend more with companies that offer their preferred option to reach customer service (for example, chat).
Is using mystery shopping for competitor research legal?
Absolutely. It is an ethical and legal way to collect data since the goal is not to steal industry secrets, and shoppers do not engage in industrial espionage. The data you are collecting, you could’ve found out from feedback or word-of-mouth information from previous customers of competitors. This way, however, it may be quicker and more effective.
Have questions or thoughts to share? Book a free call with our team to discuss how you can start offering mystery shopping for competitor research efficiently
