Spying Spenders
The ins and outs of mystery shopping
By Denise Trowbridge, New Orleans Citylife, August 2005

When Barbara Thomas goes to the gas station, she purchases $5 in gasoline then quietly counts how many seconds it takes the cashier to ring her up. To the staff, Thomas looks just like any other customer, but she isn’t. She’s a mystery shopper.

Thomas gets paid to pretend she is a typical customer at grocery stores, retailers, restaurants, hotels and gas stations. She goes to businesses, looks around and then files a report online, assessing their cleanliness, customer service and product quality.

For each assignment, Thomas earns a fee ranging from $5 to $100 plus freebies such as gasoline, dinners, trips to the casino, and even overnight stays in five star hotels. For the gas station "shop" — the industry term for mystery shopping assignments — she just completed, she’ll receive about $7 plus a $5 refund for the gas she purchased.

Thomas, who has been a full-time mystery shopper for 3 years, will perform three more shops on her way home and has more lined up for tomorrow. She shops at least three to five times every day except Sunday.

Mystery shopping is a $1.5 billion business, according to the Mystery Shoppers Providers Association, a Dallas, Texas-based industry group. Companies hire mystery shoppers like Thomas because she can give them a good idea of how average customers are treated when they walk in the door.

"The shopper’s job is simply to walk into a store and notice ‘was I greeted? Did the salesperson have a good knowledge of the product?’," says Mike Mallet, CEO of Corporate Research International, a company with 229 mystery shoppers in New Orleans. "Shoppers gives businesses the ability to monitor a location’s performance through a nonbiased viewpoint. And if there are problems, they can get to the root of it immediately."

CRI sends New Orleans mystery shoppers to clients such as K-Mart, Lowe’s, Shoe Carnival and Papa John’s Pizza.

"Just about every company uses mystery shoppers these days," says Steve Hawter, the director of training for the 555-store CiCi’s pizza chain. The seven CiCi’s Pizza locations in New Orleans get at least one visit from a mystery shopper every month. They monitor everything from how many pizzas are on the buffet to how clean the restrooms are. "They give us valuable feedback and a detailed look at each restaurant. It’s an objective assessment of how the company is hitting the standards it sets for quality."

More and more companies are seeing the value of mystery shoppers. "There’s a new emphasis on customer service because companies realize service is what will differentiate them from their competitors," Mallet says. "Mystery shoppers are a great way to monitor it."

Although it is big business, on the street level, mystery shopping isn’t a great-paying gig. Fast food assignments — the most common — typically pay $7 plus a refund for up to $7.50 in food. A grocery store shop might pay $10 plus a $5 refund for purchases. "Assignments usually pay between $5 and $50," says Judi Hess, the president of Customer Perspectives, a mystery shopping company with three dozen shoppers in the New Orleans area. "You probably can’t get rich doing this, but you can get some great free stuff."

That’s one reason semi-retired grandmother Michelle Taylor began mystery shopping last year. "It’s a fun way to make extra money," she says. "I usually make $5 to $25 for a shop, but I have made $100 for a few assignments and I’ve even been asked to take a free cruise."

Taylor, a self-described "light shopper," completes 20 to 30 assignments each month. She has audited banks, stores and apartment complexes and frequently does restaurant shops. Restaurants usually don’t pay, but she and her husband get to eat out for free. "My friends are jealous," she says. "They are always asking me how to sign up."

Despite the low pay, the perks are incredibly appealing and most of the 750 mystery shopping companies in the United States receive a deluge of applications from prospective shoppers every day. Mallet gets 300 applications a day.

The Mystery Shoppers Providers Association estimates there are 200,000 active mystery shoppers in the United States with more than 400 in the greater New Orleans area.

The association says 75 percent of shoppers are women. "Many are stay-at-home parents or retirees," says Jan Pelletiere, the President of Jancyn, a California-based mystery shopping company. "They mystery shop because they have free time and want to stay active but also want to choose the hours they work. They also want to use their brains and get something for free while increasing the family budget."

And the lure of free dinners and cruises has turned mystery shopping into a competitive field. The application process weeds out many potential shoppers. Applications always includes a writing test, "because most companies want shoppers who can craft a narrative, spell correctly and have good grammar," says Judi Hess,

"Writing skills are crucial because the reports we provide to the client have to paint a clear picture of the shopper’s experience at the store," says Pelletiere, "so if the application isn’t well written or complete, you are out."

Above and beyond writing, mystery shoppers need to be observant and inconspicuous. "Good mystery shoppers are responsible, reliable quick thinkers," says Pelletiere.

The also need a good Internet connection. These days, all reports are filed online and most fees are paid directly into the shopper’s PayPal account.

Acting skills help, too. "I once had to pretend I wanted to rent an apartment," Taylor says. "For some assignments, you have to play a character."

Another key to getting assignments is to not "flake out," according to Cathy Stucker, the author of "The Mystery Shoppers Manual." She says 60 to 80 percent of first time shoppers never complete the shop, so those who follow through quickly rise to the top.

"If you do a bad job as a shopper," says Mike Mallet, the CEO of Corporate Research International. "It’s hard to get work again."

But as a newbie it’s hard to even get that first assignment. "We only offer work to new shoppers when we can’t find an experienced shopper for the job," says Hess.

Thomas has finding work down to a science. She has signed on with 50 shopping companies and visits their online job boards every morning.

Taylor works with 30 different shopping companies. "In New Orleans there are always plenty of shopping jobs," she says. "Some companies send you an email when one is available, but usually it’s taken by the time you write back. The best way to get work is to look for assignments on the Web."

It also helps that both Thomas and Taylor are certified by the Mystery Shoppers Providers Association. Thomas received a gold certification after attending a two-day seminar; Taylor received the silver certification for passing a test online. "Most companies prefer certified shoppers," Hess says, " because by taking the initiative they show they’re serious about shopping."

For Thomas, mystery shopping is an empowering experience. "I worked in retail for years and many times you do good work and aren’t recognized," Thomas says. "Now I have a chance to make sure people are rewarded when they do a good job."

Of course, the perks are great, too. "I like mystery shopping because I get to stay in hotels and eat in restaurants I wouldn’t be able to afford otherwise," she says. "It can be a lot of fun."