NEWS

How a 20% increase in spend in fashion retail can be achieved by creating the right customer experience

How a 20% increase in spend in fashion retail can be achieved by creating the right customer experience

Sector/Location

2,325 mystery shopping visits were conducted at fashion retail stores in the BeNeLux in 2022.

What were the project specifics?

           

Why use mystery shopping?

           

How to achieve the right customer experience?

Client A wanted to measure the customer experience against agreed criteria and standards, then analyse performance and delivery against the targets set. By measuring performance, and overlaying sales information, they wanted to link service to sales, and prove the positive impact that a better customer experience had on the bottom line.

       

Mystery shopping is the only right methodology that allows companies to link the behaviour of staff members to hard ticket sales data. Mystery shopping is the best tool to measure the effect of client training and motivation programs on KPI’s such as NPS, Conversion, ATV (average ticket value), and or IPT (items per ticket).

       

Mystery shopping was the best methodology to meet the objectives, on the basis that it is the only methodology that evaluates the experience designed versus the experience delivered. It can be used both operationally and strategically, as it speaks to different departments within a business.

What were the key results?

  • Customers that were greeted upon entering the store had a +49 points higher NPS and spent +22% more than customers that were not greeted.

  • Customers who had been asked about their needs and wants had a +54 points higher NPS and spent +9% more than customers who have not been asked about their needs.

  • Customers who were escorted to the fitting room (and who received further assistance) had a +52 points higher NPS and spent +18% more than customers who were not escorted.

  • Customers who were offered additional items (cross-/upsell) had a +33 points higher NPS and spent +6% more than customers who didn’t receive these suggestions

What were the commercial benefits?

On average the mystery shoppers in these visits were reimbursed € 30 as maximum. The average spend in these 2,325 visits was € 68. Therefore, the total extra turnover for these fashion retailers based on these 2,325 mystery shopping visits was + € 21,622.

Moreover, the results of these mystery shopping visits generated key insights on how employees in the stores can have a direct impact on customer spending, and they can leverage their average spend by more than +20%.


Download Case Study as pdf file


Smiling Report
Advertisement