61% of customers are prepared to pay extra for great service.
More than 60% of customers will share their experience with 5 or more people.
CLIENT: Karcher, manufacturer of cleaning equipment
REGION: WESTERN EUROPE
SPHERE: CLEANING EQUIPMENT
COOPERATION SINCE: 2018, February
What was the objective of our investigations?
We have already been working with Karcher for 1,5 years. We’ve been conducting mystery shopping investigations for this manufacturer of cleaning equipment all over Europe – In Germany, Austria, Belgium, Hungary, Poland, Czech Republic and through the whole network.
Main goals of the new wave of the mystery shopping investigations were:
- To make a comparison between the level of customer service in 2018 and 2019 years.
- To measure the objective and subjective indexes in a section of particular locations and across the European region.
- To create a predictive model of sales growth according to quality of service within stores.
Additional project objectives were also:
- Estimate customer expectations
- Define key factors influencing purchasing behavior.
- To determine the main drivers influencing NPS and subjective indexes
What results did we get?
We analyzed the results of one wave of mystery shopping investigations according to the objectives and came to the following conclusions:
- Estimating expectations. The customers are ready to share their experience with other people. On average, one opinion will be shared with 5 acquaintances. 99% of customers associate the store with a wide choice of qualitative cleaning equipment and 94% with the highest level of service.61% of customers are prepared to pay extra for great service (professional knowledge – 62%, correct recommendation, activity, and politeness 31-39%) whilst 19% find service not important.The results for estimating expectations were almost the same a year ago, as well as the driver to pay more.
- Objective index. The tendency when the subjective index is higher than the objective index can be seen in all markets. This means that, despite the fact that the employees don’t fulfill all the standards, the shoppers enjoyed their experience.We may explain this fact with the help of the following indicators:
- Standards completion. According to the analysis, all the employees in the manufacturing network identify customer needs. But we have identified a gap in sales not reaching all the standards in development zones.The correlation analysis shows the main drivers influencing NPS and subjective indexes. As we can see the main standards are holding the test drive and providing positive examples of the device like personal use, customer reviews.
- Customer loyalty. Customers were ready to recommend the store because of service and high-quality products but will be discouraged if not able to test the device. Shoppers want to receive personalized service, responsive employees and good presentation in order to want to return to the store. At the same time, it appears that the store environment is not that important.Most of the promoters felt delighted and were in a good mood after the visit, while the detractors felt disappointment and dissatisfaction after the visit. The detractors considered the employees to be bored, sad, indifferent while most of the promoters think that the employees were confident, energetic, calm, sincere and cheerful.See the following graph for a prediction of how this NPS scores may influence the future visiting of the “Karcher” store.
As a result, we reached the following conclusions:
- Brand reputation, as well as customer expectations, strongly influence the subjective perception of the quality of service.
- The biggest claim to the quality of service of Karcher stores was the indifference of service personnel in addition to their passivity in the intention to help.
- 94% of the responders associate the Karcher store with the highest level of service, and these expectations affect the particular customer experience. It creates a positive impression, which doesn’t correlate with the objective index.