Premier Insights, Inc. conducted a comprehensive mystery shopping project for First Fidelity Bank (the “Bank”), evaluating service quality across all of the Bank’s branches and eight key competitors. The study utilized over 50 diverse shoppers performing various transactions at different times. Results indicated the Bank's service was average compared to competitors, with significant variability across branches. Key issues included staff knowledge, professionalism, branch layout, and accessibility of services; recommendations included improved training, dress code, branch design, and a stronger service culture. The bank and market names used in this document are fictional and for illustrative purposes only.
Project Overview
Premier Insights, Inc. conducted a comprehensive mystery shopping project for the Bank. The primary goal was to assess service levels across all branches, benchmark against key competitors, and identify areas for improvement. The project aimed to provide the Bank with a clear understanding of their customer service performance and create a foundation for future tracking and enhancement.
Research Design and Methodology
- Mystery Shoppers: The project employed a diverse group of over 50 mystery shoppers from the surrounding areas. Shoppers were selected based on demographic diversity and varied backgrounds. Importantly, no current customers of the Bank or individuals with connections to area banks were included to ensure unbiased evaluations.
- Diverse Transactions: Shoppers visited branches at different times of the day and conducted a variety of transactions including inquiries about personal checking, mortgage, and auto loans as well as cashing checks.
- Data Collection: Each shopper completed a detailed one-page Customer Service Representative (CSR) evaluation form, including narrative comments to provide qualitative and quantitative data. Shoppers were not aware of the client bank’s identity to maintain objectivity. They were instructed to collect names and business cards/brochures to validate their visits.
- Project Scope: The study included all the Bank’s branches and 8 key competitors, totaling approximately 300 shops.
Key Findings
- Overall Performance: the Bank ranked in the middle compared to its competitors in overall composite scores, which was on a 100-point scale.
- General Ratings: When evaluating general ratings based on a 100-point scale, the Bank’s score was below the average of the competitor banks.
- Customer Perceptions: There were differences between how the Bank was rated versus its competitors in terms of the following:
- "Thanked upon leaving": 70% for the Bank vs. 79% for competitors.
- "Employees attitude toward you positive": 89% for the Bank vs. 76% for competitors.
- "Offer assistance beyond your request": 28% for the Bank vs. 30% for competitors.
- "Treated in a respectful manner": 91% for the Bank vs. 85% for competitors.
- "Did employee give you full attention": 43% for the Bank vs. 43% for competitors.
- "Name used during transaction": 79% the Bank vs. 77% for competitors.
- "Staff smile and make eye contact": 94% for the Bank vs. 89% for competitors.
- "Greeted in a pleasant manner": 90% for the Bank vs. 70% for competitors.
- "Greeted promptly upon entry": 74% for the Bank vs. 69% for competitors.
- Rating Components: When rating specific components on a scale of 100, the Bank lagged behind most competitors.
- "Excellent" Ratings: When shoppers were asked to rate employee’s enthusiasm toward their jobs, only 46% of the Bank's staff were rated as excellent, compared to 57% of the competitor banks. Similarly, the overall experience with staff was only rated as excellent by 49% of the mystery shoppers at the Bank compared to 59% at competitor banks.
- "Poor" Ratings: When asked to rate staff as "poor", the Bank scores were generally higher than competitor banks. Specifically, the Bank had 6% "poor" ratings versus 3% for the competitor banks regarding how politely and friendly the staff treated the shoppers.
- Wait Times: The Bank's average wait time was 1.29 minutes, which was better than some competitors but not the best.
- Specific Competitor Comparisons: When compared with Season Bank, the Bank scored lower in the following categories: "Employees attitude toward you positive," "Offer assistance beyond your request," "Treated in a respectful manner," and "Staff smile and make eye contact." In terms of "excellent" ratings, the Bank scored lower than Season Bank on "Employees enthusiasm toward job," "Overall experience with staff", and "Professional appearance". When compared with 1st National Oxford, the Bank scored lower in several "yes" categories including: "Employees attitude toward you positive," "Offer assistance beyond your request," "Name used during transaction," "Staff smile and make eye contact," and "Greeted in a pleasant manner".
- Key Drivers of Satisfaction: Regression analysis showed that factors significantly impacting the overall customer experience with staff included speed of transaction, employee enthusiasm, staff smiles and eye contact, willingness to answer questions, and politeness.
- Qualitative Data: The study also revealed key themes through customer comments. Some branches were praised for friendly and helpful staff, while others were criticized for being unwelcoming and lacking enthusiasm.
- "Good Service" Descriptors: In a focus group, shoppers described good service with words like "attentiveness," "helping," "responsiveness," "knowledge," "smile," "customer focus," and "willingness".
- "Bad Service" Descriptors: Shoppers described bad service as "unwelcome," "unaware," "vegetative," "unimportant," "waste," and having a poor "attitude".
Critical Issues Identified
- Lack of Product Knowledge: Front-line staff lacked sufficient knowledge of the Bank's products and services.
- Dress Code: The staff's attire was not perceived as professional compared to other banks.
- Branch Layouts: Branch layouts were considered outdated and not user-friendly.
- Inconsistent Service: There was a lack of consistency in service levels across different branches.
- Unenthusiastic Staff: Unenthusiastic staff was seen as a key contributor to poor service.
- Accessibility of Loan Services: Loan services were not easily accessible.
Recommendations
Premier Insights, Inc. provided the following recommendations to First Fidelity Bank:
Short-Term
- Revamp Customer Service Training: Develop and implement a new training program for all employees focusing on uniform customer service procedures.
- Improve Dress Code: Enhance the professional appearance of employees through a revised dress code.
- Install Signage: Add name plates and directional markers to improve navigation within branches.
- Enhance Product Knowledge: Increase training for front-line staff on all products and services.
- Implement Regular Mystery Shopping: Use mystery shopping as an ongoing maintenance program with incentives.
Long-Term
- Cultivate a Service Culture: Make a long-term commitment to customer service, making it a top priority at all management levels.
- Employee Research: Conduct employee research or management evaluations to improve morale and job satisfaction.
- Branch Upgrades: Upgrade and remodel outdated branch locations for a more modern design.
- Expand Locations and ATMs: Consider new branch and ATM locations in high-density areas.
- Service Accessibility: Make efforts to ensure all services are more accessible to customers.
- Staffing Analysis: Review staffing and delegate responsibilities to improve the quality of service, especially during peak times.
Market Segmentation
The study also provided data for market segmentation by region, dividing the market into "Dynamic," "Intermediate," and "Static" markets based on population growth, housing units, and median household income.
- Dynamic Markets: These markets included rapidly growing counties and had higher median household incomes.
- Intermediate Markets: These markets had more moderate growth and slightly lower incomes.
- Static Markets: These markets had little to no growth and lower median household incomes. When looking at overall composite scores by market, the Bank ranked below average in all three market types.
- The Dynamic Markets included the following competitors: Winter Bank, Season Bank, and 1st National of Ocean Park.
- The Static Markets included the following competitors: Prime National, Cleveland State, and Union Bank.
- The Intermediate Markets included the following competitors: Prime National, Bank of Omaha, and NBC.
Conclusion
This case study demonstrates Premier Insights, Inc.'s ability to conduct detailed and actionable mystery shopping projects. By identifying critical issues and providing targeted recommendations, Premier Insights enables clients like First Fidelity Bank to significantly improve customer service, enhance customer satisfaction, and gain a competitive edge. The study highlights the importance of the "small personal touches" and the impact of attitude and non-verbal communication in shaping customer perceptions.