January 18, 2016 /
Comments Off on How to get a 2,750% ROI from Mystery Shopping

How to get a 2,750% ROI from Mystery Shopping

Where do you start with Customer Service and Sales initiatives?
(Vintage 2010 video)

If you focus priorities, you can achieve great increases in sales.
Imagine a store with:
  • 5,000 people walking through per month
  • 80% of people buy
  • Average price of $60.
The store also has the following statistics:
  • greeting customers 68% of the time
  • commitment to purchase is asked 32% of the time
  • up-selling 34% of the time
If each of these is improved only 10% (ie from say 68% to 78% in greeting), and then only 10-20% of 10% then make an average purchase, the store will increase revenue by $10,500 per month.  With a 50% margin that is $5,500 profit per month.
If you spent a mere $200.00 per month on Mystery Shopping and Training per store the Return on Investment is 2,750% per month.  It is almost too high to even mention.
Download the excel spreadsheet to calculate for your own business [here].
Key points:
  1. You need to measure first
  2. You need to focus on a few (maximum three) key things
  3. You need to take action for improvement (e.g. training).