Why Mystery Shopping Does Not Measure Customer Satisfaction at Banks and Credit Unions

Customer satisfaction has become a hot topic in banking.  Recent studies have concluded:  “Delivering a positive customer experience is one of the few levers banks can use to stand out in today’s market (Capgemini 2011 World Retail Banking Report)” and “organic growth rooted in strong customer relationships, and the economic rewards they deliver, will be the best path forward for retail banks in the years ahead (Bain & Company Customer Loyalty in Retail Banking: North America 2010)”  and from J.D. Power and Novantas, 2009: “Across all driving factors, satisfaction provides the most sustainable competitive advantage.”

With all of the advantages that come with high levels of customer satisfaction, it is no wonder that most banks and credit unions want to measure their customer satisfaction.  According to the Capgemini World Retail Banking Report:  “Banks are taking a closer look at the ways in which they incent and reward branch employees. Increasingly, they are using customer satisfaction as a key measure of employee performance. This process requires more frequent measurement of customer satisfaction and clear communication of the results to branch staffers.”  Many banks today will claim that they measure customer satisfaction through mystery shops.  While mystery shopping can play a role in improving the customer experience, it does not measure customer satisfaction.  To help banks and credit unions understand the limitations of mystery shopping, Prime Performance has published a white paper entitled “Why Mystery Shopping Does Not Measure Customer Satisfaction at Banks and Credit Unions.” 

Available as a free download here, the “Why Mystery Shopping Does Not Measure Customer Satisfaction at Banks and Credit Unions” white paper outlines the seven major reasons why mystery shopping fails to accurately measure customer satisfaction.

1. Mystery Shoppers Cannot Accurately Gauge Customer Satisfaction
2. Mystery Shoppers Do Not Represent Typical Customers
3. Mystery Shoppers are Not Representative of the Entire Customer Base
4. Mystery Shops Do Not Reflect Variations in Service Based on Time of Day or Day of Week or Month
5. Mystery Shops Do Not Reflect Levels of Service Provided by Different Employees
6. Substantial Variation between Shops Diminishes Value of Results
7. Mystery Shops Do Not Provide Enough Observations to Draw Accurate Conclusions

The white paper discusses other challenges with mystery shopping including mystery shoppers being identified by bank employees and the unintended consequences of a mystery shop program.  The paper also describes when mystery shopping makes sense, such as when customer contact information is not available or when it is used to supplement a robust customer satisfaction survey program.

The paper goes on to explain why telephone customer surveys are a superior approach for banks and credit unions, “based on decades of experience, we believe strongly that phone surveys are vastly superior to mystery shopping as a way for banks to gauge the quality of their customer service. Phone surveys are fast, efficient, effective and relatively inexpensive. They deliver data that is reliable, consistent and actionable. Clients welcome phone surveys that allow them to praise – or criticize – companies they know well. In fact, greater customer loyalty is an unexpected benefit of phone surveys.”