In our last blog we discussed Market Research – Your Roadmap for Success. Today I’m going to delve into competitive analysis and more specifically, using mystery shopping to conduct competitive research. This blog will explain the importance of mystery shopping as a key approach to learning about how your business can be differentiated and why it’s equally important to hire a professional to conduct mystery shopping research.
Do you know your competition? How are they different from you? What are they doing that you’re not? How are they perceived in the marketplace? More than any other marketing approach, I have found that conducting a competitive analysis for our clients has proven time and time again to be so crucial to the success of a marketing strategy. Mystery shopping is a tried and true research method used to conduct competitive research.
What is mystery shopping?
Mystery shopping is a research methodology that uses trained, professional mystery shoppers (not your mother, your aunt or your junior marketing assistant) acting as prospective customers to ascertain particular aspects of your competitors’ businesses. While posing as customers, mystery shoppers perform a series of assigned tasks designed to elicit a particular type of behaviour or information. They observe, measure and report back on their findings.
Types of mystery shopping
Mystery shoppers may employ several techniques to achieve their goals.
- Visit in person
- Make phone calls
- Send emails
- Create custom ‘customer’ websites
How mystery shopping can benefit your company
In order to fully understand how to compete in the marketplace you must first understand your competitors:
- What are they offering?
- What are their prices?
- What is their value proposition?
- What is their brand experience like?
- How is their online experience?
- How effective is their customer service?
Once you understand your competitors you can make informed business decisions on how to differentiate your company. And you can use mystery shoppers to see how your company fares against the competition using the same set of criteria.
Use a professional agency to conduct mystery shopping research
It’s very important to use a professional agency when conducting mystery shopping research. There is a strategy to competitive research. Based on the information you’re trying to elicit, you pre-assign tasks to the mystery shoppers. They must be professional or they will be detected, wasting whatever time and money you’ve invested in the effort. The information they return needs to be analyzed and a marketing plan created on the basis of those results.