Bank Mystery Shopping

 

Business Case for Bank Mystery Shopping

Research has determined the business attribute with the highest correlation to profitability is customer loyalty. This is particularly true in retail banking. Customer loyalty lowers sales and acquisition costs per customer by amortizing these costs across a longer lifetime – leading to some extraordinary financial results. In retail banking, a small increase in customer loyalty (5%) translates into a 85% increase in profits.


ROI Customer Loyalty
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There are many elements of our profit-based approach to bank mystery shopping. Part of our approach is based on our proprietary research linking bank sales and service behaviors to purchase intent.

Kinēsis’ bank mystery shopping program is designed to measure and motivate key behaviors that help to drive branch profitability.

Through our research based on thousands bank mystery shops, Kinēsis has determined the following banks sales and service behaviors are highly correlated to purchase intent:

  • Friendly/Smile/Courteous
  • Greeting/Stand to Greet/Acknowledge Wait
  • Interest in Helping/Offer Assistance
  • Discuss Benefits/Solutions
  • Promised Services Get Done
  • Accuracy
  • Professionalism
  • Express Appreciation/Gracious
  • Personalized Comment (i.e., How are you?)
  • Listen Attentively/Undivided Attention

To establish an intellectual framework or model, we assigned these ten attributes as follows to three dimensions: reliability, empathy, and assurance.




Beyond linking the above ten attributes purchase intent, Kinēsis has established a link to bank profitability. Using publicly available FDIC data, our research has determined that branches with consistently high frequencies of the above behaviors, or attributes, on average experience 26% greater deposit growth than branches low frequencies of the above attributes. Furthermore, for mystery shop programs targeted to the correct behaviors, we find same-branch deposit growth is 78% greater in branches with higher mystery shop scores than those with lower scores.

Kinēsis’ bank mystery shopping program is designed to measure, motivate and drive these key behaviors that influence branch profitability.

 

 

Research has determined the business attribute with the highest correlation to profitability is customer loyalty. Customer loyalty lowers sales and acquisition costs per customer by amortizing these costs across a longer lifetime – leading to some extraordinary financial results. Depending on the industry, a small increase in customer loyalty (5%) translates into a 25% - 85% increase in profits.