PARCs Mystery Shopping Program for Bank ABC Agenda

PARC’s Mystery Shopping Program for Bank ABC

Agenda 1. Introduction 2. Mystery Shopping Program – A Brief on the Nature of the Study 3. Mystery Shopping Program methodology 4. Mystery Shopping Program Additional Approach 5. Mystery Shopping Program – Bank ABC Competitors 6. Mystery Shopping Program Deliverables 7. Mystery Shopping Program Analysis Samples

Mystery Shopping Program

Introduction PARC’s Mystery shopping purpose is to help businesses increase customer satisfaction, customer retention rates and your overall sales efforts by assisting in improving customer service awareness & raising its performance standards. Our services provide businesses with an unbiased opinion of how they are perceived by their customers. It will take you in customers’ journey where you can understand feel what they go through. The staff will normally act without knowing they are interacting with unreal customers so you can detect actual scenarios.

About Mystery Shopping What Is Mystery Shopping Program? Mystery shopping is a tool used to measure quality of service, compliance to regulation, or to gather specific information about products and services. What Can Mystery Shopping Provide? • Gather Tactical Data and Engage Prompt Action • Establish Statistics of Events Recurrence • Provide Factual Description of Real Experience Records

Mystery Shopping Program A Brief on the Nature of the Study

Mystery Shopping Program Objectives The key objectives of this Mystery Shopping program is to monitor the performance on all aspects of interface and interaction with current and prospective customers through: - 1. Measuring the extent to which front-line operations and procedures meet the standards and guidelines laid down by management. 2. Assessing the interaction between the front-line staff with current and prospective customers, pin-pointing problematic aspects of this relationship, if any. 3. Allowing for immediate and prompt actions to rectify any deviation from management standards and/or resolve any problem in the interface between staff and customers.

Mystery Shopping Program Approach Basically, there are two levels involved in a Mystery Shopping exercise that vary from totally objective to fairly subjective: 1. Registration of non-behavioral features: This involves observing and registering whether the outlet is organized and maintained the way it should be in an objective way 2. Measuring Staff behavior Here we will distinguish between: How does he do it? What does he do? The “what” behavior is also The “how” behavior is the most important aspect of Mystery an objective measure. The Shopping since it represents a Mystery Shopper will note what the staff members did point of distinction with the competition in a fully objective manner

Areas of Investigation Examples 1. 2. 3. 4. 5. 6. 7. 9. 10. How does the Bank welcome new customers? Are all new customers contacted by a personal banker as they should be ? How does the advisory system function? Does the personal Banker provide the necessary information by listening to and identifying the customer's needs? How long does a routine cashier transaction take? How does the bank handle a loan application request? Are all procedures, formalities and documentation required explained clearly to the customers? How does the bank handle a situation where a customer wants to switch to another bank. Service rendered by the front line staff? –Did the employee greet the customer? –Were the employee helpful, friendly and courteous? –Were the employee quick, to give assistance when asked? –Did they have sufficient knowledge about the products and services of the bank?

Areas of Investigation Examples 11. Branches appearance and layout? –General appearance of the branch –Design and layout of the branch –Availability of counters for the tellers / cashiers –Display and availability of brochures –Clarity of sign boards announcing the location of different departments like tellers, credit cards section etc. . –Lighting –Cleanliness and tidiness –Parking spaces and facilities Others… Note: All this areas will be investigated and more if applicable

Mystery Shopping Program Evaluation Form PARC’s team along with Bank ABC team will prepare the evaluation form for branches according to the scenarios & details that need to be evaluated. Bank ABC will then revise the form to be finalized & will assign the importance of each critical aspect to be further used in the scores assigned to each visit. Critical Evaluation Aspects (Examples) Attributes covering the external environment and the physical organization of a branch: Ambience Attitude Service Speed Knowledge Procedures Others. . - Outside Lights, signs Numbering system are working Brochures boards and flyers Walls, Ceiling and inside lights Facilities Attributes covering relevant service oriented attitudes such as friendliness, proactivity, alertness, problem solving ability, …etc. Attributes covering the speed of handling the client queries and transaction…etc. Attributes measuring how the advisory system functions in the event of the information seeking on products or services. Attributes measuring, the simplicity and ease of procedures when the customer actually involves himself in a transaction, whether it is to open an account, taking loan, implementing a bank transfer…etc. Any factors that are advised from the client according to their performance standards checked. Note: Aspects will be subject to change according to Bank ABC’s standards.

Mystery Shopper Program Scoring Scores are calculated by the research management based on the questionnaire completed during the visits conducted by the Mystery Shoppers. Scores are granted when service norms are met. Scores are not granted, if service standards are not met. 100% score in any area means the service standards are met.

Mystery Shopping Program Methodology

Mystery Shopping Program Outline Pre-Fieldwork implementation: 1. A sample of people representing a cross-section of the adult target population will be recruited and trained to act as Mystery Shoppers and implement the research program. 2. A number of different scenarios will be built by the project manager, Bank ABC team & the field supervisors to suit different banking services within branches and to facilitate assessing all performance criteria required for each branch. 3. Afterwards, these scenarios will be handed over to different mystery shoppers in accordance to the program schedule & needs, then, they will be intensively trained upon their own scenario within the individual training sessions. 4. The mystery shoppers’ team will be trained by PARC’s fieldwork supervisors and project manager on the outline & details of Bank ABC specific performance standards (and competition if required) and are given clear instructions about the critical details that should be observed through each visit per branch (according to the aspect covered with Bank ABCs’ team).

Mystery Shopping Program Outline Fieldwork implementation: 1. Each Mystery Shopper visits various branches at a pre-determined date and time known only to research management to play the role of a real customer ensuring that he/she is not identified by the staff as a test buyer. 2. Mystery Shoppers will mainly assess the key performance criteria for each branch using a simple, mostly Yes or No, questions form to indicate the fulfillment or non-fulfillment of each aspect from the list that will be indicated in the form they’ll fill according to the visit. 3. PARC will not use the same shopper for more than two branches within the same wave in accordance with the scenarios differentiation – of course.

Mystery Shopping Program Outline Post-Fieldwork implementation: 1. Each Mystery Shopper would fill the questionnaire while or immediately after the ‘Visit’, while the interaction is still fresh in his/her mind. 2. This data will be gathered and recorded on our residential software where PARC’s analyzers will use and the data will be edited and verified to make sure of data entry accuracy. 3. Data tabulated according to clients’ needs to be ready to be delivered to client in Power. Point presentation with full analysis. 4. Qualitative analysis will be prepared including all incidence occurred during the visits.

Mystery Shopping Program Management Team PARC will assign a Project Manager who will be responsible for the overall project conduction and will communicate with Bank ABC team and co-ordinate successful implementation of the project. Further, a team of 2 supervisors distributed across different branches will be set to work with the project manager for fulfilling the particular program requirements and to coordinate with different mystery shopper customers while conducting the field visits at the branches as per the schedule.

Mystery Shopping Program Scenarios Examples Mystery Shoppers may follow the following scenarios while evaluating a bank: 1. Establish a customer relationship, open a new account, initiate a new service from same account 2. Make deposits and withdrawals of various amounts of money in the bank, in different branches to/from account. 3. Visit branches and ask for advise on: a range of services or options including deposits, loans, investments 4. Apply for a personal loan 5. Apply for an auto loan 6. Pay bill through the bank 7. Make transfers abroad (various markets) or to another account at same branch, different branch, or to a different bank 8. Close the account 9. Use the ATM machines (on / off net ) at various branches, at various day parts and days of week Note: Scenarios will be subject to be changed according to Bank ABC’s need.

Mystery Shopping Program Quality Control • PARC’s quality team will evaluate the mystery shopping program by evaluating both the shoppers performance & the visits details. • For visits schedule checking; PARC’s supervision team will ensure the below actions: – Reminding the mystery customers via calls of their visit timings right before it, then calling them through their visit to make sure they’re in the set branch on the set time. – Revising the transaction documents in order to verify the place & time – if applicable. • Then, a quality control and monitoring system will be implemented during the fieldwork phase to monitor the accuracy of the data evaluations and track performance of the shoppers’ team. This system will work as follows: – Same-time visits; this quality control level will entail having one of PARC’s quality team – who is un-known to the shopper – in the same branch visited by our mystery shopper to ensure the visit performance & the – Re-visiting; double-checking second visits conducted by either one of PARC’s quality team or another shopper – different from that of the first visit – to selected branches to verify the evaluations collected over the first visit are true.

Mystery Shopping Program Additional Approaches

Mystery Shopping program Call Approach • Customers expect knowledgeable, high energy and friendly call that will answer questions and resolve issues for them every time. • Failure to meet or exceed their expectations can dramatically effect your business. Exceeding their expectations is vital and will help your business thrive in any competitive marketplace. • PARC will provide you a call center quality assurance program to make sure that customers get the desired interaction to sustain and increase their satisfaction with Bank ABC and determine if intensive training in certain key areas is needed.

Mystery Shopping program Email Approach • In addition to telephone mystery shopping, we offer email mystery shopping to track email response times, grammar, punctuation, accuracy, and thoroughness. • E-Mail Mystery Shopping is essential in understanding your customers’ online experience. • PARC, with the cooperation of Bank ABC, will prepare different email scenarios to test the efficiency and effectiveness of email response.

Mystery Shopping Program Bank ABC Competitors

Mystery Shopping program Competition Approach • Monitor the direct & indirect competing products & services between Bank ABC & the main competitors that will be specified with the cooperation of Bank ABC. • Measure the differences between what is offered by different competitors vs. Bank ABCs’ offers, pin-pointing key aspects of different offers. • Gather a full picture about all the fine details that will be beneficial for Bank ABC. • Allow for immediate and prompt actions to respond over different market activities that may affect your business directly or divert your current or prospect clients to competition.

Mystery Shopping Program Deliverables

Mystery Shopping program Analysis Capabilities PARC provides its esteemed clients with regular periodic deliverables as follows: • Visits’ script forms within 24 -48 hours. • Analysis of performance on different bases as advised by Bank ABC • Periodic (monthly/ weekly/…) analysis reports for Bank ABCs’ branches • Comparison reports for client vs. competition across critical service aspects/ regions PARC will always be able to provide Bank ABC with comprehensive mystery shopping visits evaluation scoring & analysis across: • Bank ABC evaluation by branches, branch types, regions, services scenarios, performance aspects, overall evaluation scores, . . . etc. • Qualitative analyses over any special events occurrence during the evaluation/ visit time. • Trending analysis for branches/ division/ regions evaluation aspects’ performance separately to track changes across time in case other waves were conducted. • Bank ABC vs. competition across regions, critical performance aspects, time, … etc.

Mystery Shopping Program Analysis Samples

Report Sample for Adequate Evaluation TOTAL SCORES BY VISIT TIME BY MONTH Visit 1 TIMES FROM 01. 00 TO 04. 00 PM FROM 02. 00 TO 04. 00 PM FROM 07. 00 TO 10. 00 PM FROM 06. 30 TO 11. 00 PM TOTAL HOS. Hos. % 87. 3 85. 7 82. 8 79. 8 83. 9 CLN. % 91. 8 93. 3 84. 0 85. 5 88. 7 KLG. % 99. 0 100. 0 94. 3 97. 4 97. 7 CRITICAL AREA SOS FACI. % % 90. 6 100. 0 86. 1 99. 7 78. 3 95. 4 75. 6 100. 0 82. 6 98. 8 AREA HOSPITALITY OSM % 84. 2 84. 7 81. 7 77. 8 82. 1 Maximum 10. 0 CLN. KLG. SOS CLEANLINESS Knowledge SPEED OF SESRVICE 10. 0 7. 0 6. 0 FACI. OSM FACILITIES Outstanding Management 25. 0 30. 0 GM/OO General comments / other observations 12. 0 GM/OO % 81. 7 84. 9 78. 3 78. 6 80. 9 TOTAL Month: Jan 20 XX Shop : Visit 1 90. 7 90. 6 85. 0 87. 8

Comparison between Branches, Brands, Critical Areas for Bank X COMPARATIVE RESULTS FOR THE MONTH OF Month ( TOTAL SCORES % ) Visit 1 Visit 2 DIFFERENCE Cairo HOSPITALITY 81. 3 82. 1 - 0. 8 Ambiance 88. 8 82. 6 6. 2 Sharm COMPARTIVE RESULTS FOR THE MONTH (CRITICAL AREA %) Knowledge 86. 6 83. 9 2. 7 SPEED OF SERVICE 80. 6 80. 9 - 0. 3 97. 0 98. 8 - 1. 8 General comments / other observations Management should be aware 92. 7 88. 7 4. 0 Cairo Procedures Visit 1 Visit 2 90. 1 88. 6 91. 7 86. 4 77. 5 87. 7 84. 8 91. 9 93. 5 --- DIFFERENCE + 2. 4 + 3. 8 - 2. 0 - 7. 1 --- COMPARATIVE RESULTS FOR THE MONTH OF Month ( Hospitality %) Sharm Critical Area Branches Giza Helipolis Maadi Nab 2 Mashaya Branches Giza Heliopolis Maadi Nab 2 Mashaya Visit 1 Visit 2 86. 4 83. 3 95. 3 84. 4 81. 0 83. 1 83. 2 89. 3 86. 5 --- You can compare between Even Branches and/or Visits In correspondence & alternatively on aggregate and single basis by Critical Area DIFFERENCE + 3. 3 + 1. 0 + 6. 0 - 2. 1 ---

Bank X Performance Results Vs. Competition COMPARITVE RESULTS FOR THE MONTH (TOTAL SCORE %) 98% 88% 90% 76% 92% 86% 84% 80% 64% 90% 87% 65% Bank. X Bank. Y Bank Z Giza Zamalek Heliopolis Shoubra

Overall Yearly Analysis For All Bank Branches Score Per Branch Per Critical Point Waves Branch 1 Branch 2 Branch 3 Services Quality Cleanliness Jan 100 100 100 Feb 100 100 93 100 100 100 Mar 100 93 100 88 89 100 100 Apr 100 100 81 100 100 100 May 88 100 100 Jun 88 100 100 100 93 93 100 Jul 93 100 81 100 100 Aug 88 93 100 81 100 100 100 Sep 93 100 93 81 100 93 100 Oct 100 90 100 100 100 Nov 81 81 100 100 93 100 Dec 93 93 94 81 100 93 100 Total 94 97 97 93 98 100 96 99 100 Summary: At over all level Score on “Chain for year ” is 97. 6% Service & Quality are the less Critical Points Scores during the previous year.

Overall Yearly Analysis For All Bank Branches The Most Critical Points affected on Total Score for the Bottom Branches: The Bottom Critical Points: Service Knowledge Branch 1: Service Branch 2: Service Knowledge Branch 3: Service Knowledge Branch 4: Service The Best Branch in Total Score (99% & Over): Branch 1 Branch 2 Branch 3 Branch 4 The Bottom Branch in Total Score (Less than 97%): Branch 5 Branch 6 Branch 7 Branch 8

Average Bank Service Performance Branches Maadi 99. 7% Cairo 99% Mohandessin 98. 3% Sheraton 97% Kattameya 96% Assuit 95% Hurghada 94. 5% Luxor 94% Heliopolis 93% Dokki 93% Giza 92. 1% Alexandria 92% Aswan 92% Sharm El Sheikh Haram Maadi and Cairo Branches achieved the highest average across Bank ABC Branches 99. 7% and 99% followed by Mohandseein and Sheraton Branches. • The lowest average among the group was Haram Branch 89%. 98% October Damietta • 91% 90% 89% Branches

Areas Performance in Year 2 Vs. Year 1 Average Performance Across Areas in Year 2 Vs. Year 1 96. 3% North Coast 96. 7% 96. 2% Alex East Coast Cairo 97. 9% 96. 8% 95. 7% 98. 6% Average 2012 Y 1 Average 2011 Y 2 It's obvious that the averages across areas in Year 2 were higher than that of Year 1. As Cairo scored the highest average in Year 2 it came with the lowest average in Year 1 East Coast scored the least average in Year 2.

Evaluation on Bank X Upon Criteria Customer Interaction Management 90% 70% Customer Service Representative 80% 75% Flyers & Brochures Appearance 80% Follow Up

Total Evaluations Vs. Competition Customer Interaction Management Customer Service Representative Flyers & Brochures 77% 71% 90% 95% 70% 65% 34% 55% 46% 55% 40% 20% Bank X Bank Y Bank Z Bank Appearance Follow Up

Bank’s Visit Management (Sub criteria) Evaluation Presentation & Convincing Skills Problem Solving Skills Hospitality and friendliness Service/ Product Knowledge Information Transfer 50% 100% 60% 100% 74% 70% 82% 80% 78% 93% 100% 89% 91% 780% Bank Y Bank Z Bank X

Call Center and Email Management’s Bank X Critical Points Call Bank X Bank Y Bank Z Service speed 3. 2 4. 8 4 Knowledge 2. 8 3 3. 1 Procedures 4. 2 4 2. 9 5 2 1. 7 Attitude Service speed Knowledge Attitude Procedures We can compare between Bank X Branches and also can compare the call and email performance with Competition

Call Center and Email Management’s Bank X Critical Points Email Response time Attitude Bank X Bank Y Bank Z Response time 5 4. 5 3 Attitude 4. 3 4. 2 4. 6 Grammar and punctuation 3. 9 5 2. 3 Grammar and punctuation We can compare between Bank X Branches and also can compare the call and email performance with Competition

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