Mystery shopping. Secret shopping. Professional snoops. Anonymous audits. Telephone checks. Spotters. They all describe an estimated $600 million industry focusing on research, experiential data and observations to help businesses improve their service, sales and profits.

Market research companies use mystery shopping to evaluate the quality of retail service, the appearance of a business and the customer's experience. The practice is common in the hotel industry, restaurants and retail stores.

When customers enter your store, phone or shop your Web site, are you certain they're getting the best service possible? If not, it could hurt your business more than you imagine. The majority of dissatisfied customers never complain; they simply never return, and they tell their friends about the poor experience.

The Small Business Development Center offers a limited mystery shopper program to local businesses. It's often done when the owner is absent to determine if the training they provided to employees is in use. We often find customer service slips when the owner is away. No owner or manager can be present at all times, so this evaluation can be vital.

Last year I visited a local coffee shop. When I entered, the employee at the counter was on a personal phone call and I was not acknowledged for a full two minutes! The owner was furious when he received the report. Had I been a paying customer, I would have walked out. On another site visit, I nearly broke my neck on merchandise blocking the aisle. On a subsequent visit, I was pleased to see the hazard had been removed.

The business owner can expect a report based on the criteria he or she outlined as important. At minimum, the report includes the date, time of the visit or call, the employee evaluated, how they were greeted, how a "problem" was handled, the store's cleanliness and layout and the tone and demeanor of the employees observed. Frequently, a shopper will ask for an atypical transaction to test the level of problem-solving, dispute resolution and flexibility of the store and its employees.

Operations visible to the customer also are evaluated. This can include signs, cleanliness, merchandise layout, lighting, posting of return policies, restroom conditions and "feel" of the store. For restaurants, the report focuses on the service received, timeliness and appearance of the food served, suggestive selling offerings and food quality.

For e-commerce, the number of clicks to complete a transaction, ease of site use and visual layout are often evaluated. For service companies being evaluated by phone, the analysis covers number of rings, employee knowledge and service style.

Any mystery shopper visit should be preceded by staff training. How can a business owner expect employees to provide excellent service if they are not properly trained or coached on the company's products, services or policies? A good employee training program will ensure better customer care than any mystery shopper report. After all, employees are your sales force and indeed, the "face" of any retail business.

Smaller companies that outsource mystery shopping must take care to avoid fraud. Unfortunately, many scams promote "Earn money as you shop!" schemes. Check with your professional association, search the Web and do some homework on companies that offer mystery shopping. Good resources include: www.mysteryshop.org and http://www.bbbsilicon.org/news_Jun2003.html

The Small Business Development Center's mystery shopper program is designed for local retailers and food service businesses. The $150 fee covers an interview with the owner, two site visits and a report on the findings. For those in business for more than a year, the center also offers a free evaluation of your Web site, including download times, functionality, usability and browser compatibility. For information on these services, call 479-6136 or go to www.centralcoastsbdc.org.