- By keeping employees satisfied, restaurants can ensure happy customers.

What do consumers think of your retail store, your employees and their sales effort? HPA Canada set about to find out.

Robert Burns had it right. Our perception of ourselves, or our business, or the company that employs us, differs from that of others a bit further removed. And their perception is oftentimes more accurate, because it is less biased.

Recently, a select group of hearth retailers in Canada received that "gift" of despassionate appraisal, courtesy of Tex McLeod and the Hearth Products Association of Canada/A.P.C. McLeod is executive director of the association, and a person seldom bereft of ideas.

It was his concept to commision Sensors Quality Management, a firm specializing in appraisals of retail stores, to conduct what was termed the "Mystery Shopping Program." The goal of the program was to obtain independent, unbiased appraisals of selected hearth retail stores, and to present those findings to the store's owners - in short, to allow hearth store owners to "see" themselves as consumers see them.

In August and September of 1998, McLeod and various members of HPAC worked with SQM to develop a suitable evaluation form. A total of 31 areas of evaluation were identified, six of which would be measured on a sliding scale (1-20 and 1-25), and 25 with simple "yes" or "no" answer.

At that point, SQM's field representatives (Mystery Shoppers, if you will) set about to evaluate 21 hearth shops, in the provinces of Nova Scotia, Quebec, Ontario, Saskatchewan and British Columbia.

Beginning with a phone call to the store to determine promptness, courtesy and ability to provide clear directions, these representatives then proceeded to the store to assess the physical plant - both outside and in - and the sales experience itself.

The Results

So how did these 21 stores fare in this retail evaluation? As a group, they averaged 78 percent out of a possible 100 percent. There were three areas in which all retail shops received a perfect score: questions 3, 4, 5, 6a, 6b, 6d, 7 and 13b (see chart). The three ares in which this group posted the lowest scores were as follows:

Question 17b: Were woodburning fireplaces/stoves operating?

Question 22: Did the sales staff ask you for feedback on the products?

Question 27: Did the sales staff obtain follow-up information (name, address, phone number) for an appointment? Surprisingly, only six of the stores in the study had wood stoves burning, despite the incredible devastation wrecked by last winter's ice storm throughout the province of Quebec. Large areas of Canada were without power for weeks as power and transmission lines toppled like so many dominos, and families were forced into shelters for survival. If ever there were an opportunity to sell wood stoves in Canada, 1998 was it.

How then is this seemingly masochistic business decision not to burn wood stoves in hearth stores to be explained?

"I didn't expect our shoppers to find wood stoves burning unless it was seasonably appropriate," says McLeod. "Our guys are of the opinion that, if it's not cold outside, they don't have to run a stove. But the stores do have an obligation to run the stoves, and to devise a system to dump the excess, if necessary. If stoves aren't being burned in September and October, then sales are being lost." For a salesperson to ask a consumer for feedback on products afer having explained their pros and cons is just plain good business. It is vital to elicit as much nformation from a customer as possible, both to pinpoint their needs and their possible objections. Only seven stores were found to employ this very basic sales technique.

There's a message here for our hearth retailers. We think the sale is technically based, and we might give technically correct information, but that's not selling. What we're talking about here should be part of very sales effort. If you're not asking for feedback, then you're not listening very well." Unfortunately, it is not surprising that the vast majority of these stores failed to collect name, address or phone numbers of consumers who entered their shop. Other surveys of hearth dealers yet, the resulting list throughout the years have shown this to be the case.

When a consumer enters a store, any store, he/she has displayed an interest; they have raised their hand and yelled, "I am interested in the products you have for
sale!" To let that person simply saunter out the door, perhaps never to be seen again, is just not smart business.

Computerized lists of those customers who have bought, and those who have not, may be the most valuable documents available to any retail business person. The uses of such lists are many an varied, and they are all lucrative.
Consider the costs - in your store, your signage, your inventory, your lighting, your heat, your salespeople, your advertising - just to get a customer to open your front door and walk in. Failure to capture information that enables you to contact that person again is a capital error.

Typical Problem Areas

Remember that the average score for all 21 stores was 78 percent, which is really not bad. In fact, one store scored a perfect 100. But we all learn more from properly directed criticism than from praise. Here then are some of the problem areas as reported by Mystery Shoppers.

"The person answering the phone was a little curt."

"Two wood fireplaces were dirty and not working."

"Three of he displays were missing, and one had parts all over the floor."

"The gas fireplaces were not functioning."

"The woodburning stoves/fireplaces were not functioning."

"The accessories were put out in a somewhat haphazard way. Some were still half wrapped in plastic."

"The shopper had to go searching for a salesperson to serve him. It took five minutes."

"There was no mention of wood. The shopper finally had to ask."

"The salesperson did not make eye contact very often, and he was not very informative."

"Doors had fingerprints; tiles were stained; ceilings were smudgy."

"Didn't see any 'add-on' items, only fireplaces, no accessories."

"Service was rushed, shopper wasn't acknowledged for four minutes."

"The shopper was told to call their service technician (for more information). He would explain the shopper's options."

"The salesperson said, 'The wood stove will make a mess on the floor."

My presence was acknowledged only after four minutes, while three salespeople were talking at the back of the store."

"The doors on the fireplace were not clean, and not working properly. The fireplace was a little damaged."

"The gas fireplaces were not operational."

According to McLeod, this has been the first phase of the project. "The next phase is to go back to our members, in another two or three months, and ask who would like to be involved in the next round," says McLeod. "Stores that have been shopped already really should be involved again, to see if they have improved."

"This program gives a relatively objective view of how people are perceiving your store," says Warren Middleton, chairman of the HPAC's Retail Caucus. "It provides an impetus to fix things up."

McLeod would like to see the Mystery Shopping Program become an ongoing affair, with stores being shopped three or four times a year. The initial cost will be about $75 per store but, as more stores are added, the price will go down.

"This is a lot of information for the price," he says. "And manufacturers could use the same system to determine how retailers are representing and selling their products."

Copyright © HEARTH & HOME, 1999

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- Can They Help Hotels Head Off Major Quality Problems?

Lodging

What brings guests back? A fluffy robe hanging on a padded hanger? Creamy chocolate reposing on the pillow? The jungle safari bedroom decor? Or plain vanilla, old-fashioned service? All things being equal, mystery shoppers say service wins by a smile.

"Most hotels have decent locations, are reasonably clean, have nice beds with good mattresses, offer satisfactory meals, and have prices grouped in the same range. The big difference is in the service. Anyone wanting to differentiate a property has to do it here. It's the last frontier," says David Lipton, president of Sensors Quality Management Inc.

Packing a background in the hospitality inustry, Lipton has been a mystery shopping sleuth since 1993. After finding few Canadian companies specializing in the hospitality industry, he honed in on customer service, an area he saw as weaker in Canada than in the United States. SQM armed itself with carrots rather than sticks because mystery shopping, Lipton believes, is a tool to change or develop employee behaviors. Incentives, he says, are more powerful than Big Brother.

"Except for cash/liqour control, our investigations should be used to train and work on troublesome areas. It isn't effective when you slap employees on the wrist or write them up. The idea is to develop staff and have well-spaced follow-ups, allowing time for improvement."

SQM's first step is to analyze a company's goals and objectives in relation to mystery shopping. Some want reports predicated on AAA and Mobil standards; others request regularly scheduled monitoring surveys based on company criteria. Lipton asks management to list specific standards based on operating procedures. For example, if hotel policy says phones must be answered within five rings, SQM will not penalize an employee who doesn't pick up until the fourth ring. Preferring to leave the management to management, Lipton avoids suggestions as to how many rings might be optimum.

A mystery shopper makes a reservation, books a room, and follows up with a pre-arrival call asking for directions. A shopper scrutinizes the doorman, bellman, front desk, and check-in proceduers. His or her luggage blends in with that of other travelers, but hidden within are evaluation forms. Lipton says, "Our forms are different from others. Each hotel department has one to five pages for different areas. To change ingrained behavior, we use weighing scales with three responses-yes, no, and not applicable. We have omitted subjective judgments." An evaluation usually requires a 24-hour or 48-hour inspection.

Once the door closes behind the bellman, a mystery shopper metamorphoses from pleasant to persnickety, and nothing escapes the hunt for dust, dirt, and other forms of guestroom unpleasantness. SQM's room cleanliness check runs five pages; the complete report is 75-100 pages. Lipton summarizes the top 10 and bottom 10 areas for easy reading.

Shoppes work like crime-scene cops checking everything before contaminating the scene. After probing the guestroom from ceiling to floor, the white gloves come off. It's then off to food and beverage and amenities like pools, fitness, and spa areas.

Shoppers request irons and ironing boards, extra blankets and towels, and other housekeeping items. Some order late-night room service and request liquor after what might be last call for that locality. They test phone operators with late calls, incoming fees, and wake-up calls. Since security falls within shoppers' purview, they check underground parking lots and try to get room keys without showing identification. Mystery shoppers look at everything from the guest perspective, but as guests who know the industry and can deliver an informed and well-tempered commentary. "We are paid to be picky," says Lipton.

Pam Szedelyi launched a mystery shopping business in 1983 and christened it Perks, choosing her appellation to underline a belief that service perks are what bring guests back again and again. "When I sell my service to a prospective client, I tel them how easy it is to see things done wrong. It's harder to give them constructive answers." Her system is copyrighted and has a set of standards that applies across the lodging spectrum.

Perks grades on a pass/fail system. Shoppers mark items either sufficient (meets the standard) or insufficient (does not meet the standard). Grades are itemized on spreadsheets divided by departments or across the board. Szedelyi says, "Clean is clean, and dust on a lamp at the Holiday Inn or the Ritz doesn't meet the standard, complimentary robe and candy notwithstanding."

Szedelyi's shoppers are not allowd to create a problem just to see what happens. "We never send food or wine back. So many things happen in an average visit that you don't have to manufacture something." Examples are shoppers who request nonsmoking rooms and get sent to the opposite category or clerks who loudly announce room numbers for solo women travelers. "All we look at are people-related functions, not capital expenditures. What we give management is a tool, one that can be used immediately to address problems."

Carol A. Riker of Listen In narrows mystery shopping's focus to telemonitoring. Her callers pose as potential customers and evaluate switchboard and reservations services. They dial in search of greetings that are professional, enunciated, unhurried, and courteous. All are evaluated along with effectiveness and sales skills for reservations and banquet sales. Riker develops standards, each with a point value, weighted as to what is important in job performance. A typical client call might have 20-25 items.

"Some we call three or four times a month. Some we call three or four times weekly. Our programs help hotels measure the effectiveness of their training programs. Reservations agents, for example, normally can't conceive of someone who would spend more than a minimum rate. They say, 'The lowest rate I have is . . . .' They don't try to uncover guests' needs, and an amazing number never ask for the sale." Her statistics show that last year only 77 percent attempted to upsell, and only 67.5 percent routinely explained features of the hotel or guestroom.

Riker is a member of the answer-in-three-rings phone school (only 88.6 percent of switchboards made the grade here) and a stickler for offering to rebook, which happened 82.5 percent of the time. She listens for reservations agents with "a smile in the voice" and finds them 83.5 percent of the time. Since calls may be taped, Riker insists on prior written aurthorization from the employer. She provides audiotapes and describes her costs as a "mere pittance."

David Richey, president of Richey International, dispatches shoppers to some 80 different countries, and his shoppers must allow for minor cultural differences. In Thailand, making eye contact is typically inappropriate, and many Europeans don't appreciate being continuously addressed by name. However, there are global standards such as 20 minutes to get a room service breakfast, and finite times to check in (six minutes including waiting time, less than that to get that first cup of morning coffee in the hotel's restaurant).

Most of Richey's business is outside the United States, as Europe and Asia rapidly catch up in customer service. "Many of our clients are at the upper level of the marketplace, like the Ritz Hotel in Paris. We view our relationship with clients as a long-term solution activity. Ten years ago you clould just sell services. Now we get involved with our clients to bring about a change, and we're just one tool. To improve their place in the competitive market, they need guest surveys and incentive programs."

When Richey teaches at the Lausanne Hotel School in Switzerland, he frequently quotes writer Phil Crosby, "Quality is just doing what you said you were going to do." Then Richey asks his class, "Which company offers the best service, McDonalds or a luxury hotel?" The response he looks for is "McDonalds" because it does what is says it's going to do.

"We strive to help clients keep their promises and then test to see how consistently this is done," says Richey. "If it doesn't happen all the time, everywhere, then it's just a slogan."

Some of Richey's clients hire his firm to shine a spotlight on cash handling, an aspect of mystery shopping SQM also handles. Richey pegs shrinkage at 7 to 8 percent worldwide and says, "During a visit we pay cash and at the end of our survey do an audit to ensure all the money goes where it should."

The mystery shoppers we interviewed usually hire those with a hotel or hospitality background and train them to complete a mystery shop. Richey International has about 60 full-time staff working on a global basis, and the company ranks stamina near the top of job requirements.

At Perks, Szedelyi tries to match market demographics with whomever she sends, never directing the same shopper to the same property more than twice, and she has a constantly revolving set of independent contractors paid on a perdiem basis, plus expenses. "The client deserves a fresh eyeball every time someone goes in. I work with a lot of resort development and time-share properties, and once you've heard the pitch you aren't fresh."

SQM offers a variety of shoppers, ranging from average-looking families or single travelers to individuals with handicaps. "We either use local reps to keep costs down," says Lipton, "or choose shoppers experienced in a particular industry."

He believes mystery shopping serves to identify strengths and weaknesses and reinforces the training on which companies spend millions of dollars. "The program sometimes acts to raise employee pride, to make them want to do better." In Lipton's opinion, changing behaviors requires three or four months, and he suggests posting blank evaluation forms in different departments. "Employees need to see the areas that are most important. It is not fair to them otherwise."

"Hotels spend millions of dollars on advertising but little to see that a customer gets what was promised," says Diana Oreck, vice president of franchise administration at Westin Hotels & Resorts.

David Richey agrees. "A standard is different than what is contained in a marketing brochure. We help companies identify standards and go around the world measuring conformance to those standards. The United States has had a pretty good couple of years, but that can't last forever. Now it's time to focus on the operations again."

Copyright © LODGING, 1998

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