In 2019-2020, store visits and retail store audits witnessed a dramatic decline, plummeting by over 75%, signifying a transformative shift from the traditional on-field audits that were once pervasive across the retail industry. This shift towards virtual audits, facilitated with the assistance of staff, has persisted, with numerous leading retail establishments incorporating a virtual store audit format into their practices.
Amidst the ongoing digital transformation, retailers, suppliers, and manufacturers in the retail industry are strategically positioning themselves to stay competitive. The imperative now is to craft an effective virtual retail audit strategy, grounded in robust support from on-ground employees and the wealth of available data. The shared objective of virtual retail audits remains steadfast: gathering comprehensive retail store data, discerning customer preferences, and ultimately conducting a thorough analysis of the retail environment. These audits serve as a crucial tool for stores, empowering them to craft an enhanced customer experience within the dynamic landscape of the retail industry.
What is a virtual retail audit?
A virtual retail audit mirrors the conventional on-field retail store audits or compliance audits but adopts a digital framework for comprehensive evaluations. This contemporary methodology is instrumental in appraising store performance, ensuring brand compliance, and finely detailing product profiles within the dynamic context of a retail setting.
Who performs virtual retail store audits?
Typically overseen by area or district managers, either internally or externally, these audits are also expertly managed by premier customer experience companies offering specialized services. These services encompass brand audits and compliance audits in retail stores, conducted by proficient auditors within the retail industry.
What is the importance of retail audit? Is a retail audit necessary?
In essence, to maintain a leading position and establish yourself as a formidable competitor among fellow retailers, conducting audits for your retail store is imperative. Virtual audits play a pivotal role in enhancing both products and store performance, contributing to the effective management of customer experiences.
Do virtual retail audits work?
A virtual retail audit is executed with the same level of precision as an on-field audit, if not more. In fact, it has the advantage of minimizing distractions and can prove to be more commercially and ergonomically beneficial for the retailer.
What are the various types of retail audits?
The classification of retail audits is centred around the collected data. Let's delve into the distinct categories:
Retail Market Audit
Tailored for suppliers, this audit sheds light on understanding partners. It encompasses crucial data like consumer sentiment, store appearance, location impact on business, cleanliness, promotions, design, neighbouring competitors, and retail brand analysis.
Merchandising Audit
Conducted by existing suppliers, this audit provides a comprehensive overview of brand performance. It collects data on product inventory levels, stockouts, product availability in retail stores, allocated shelf space, product pricing, and overall shelf presentation.
Promotional Audit
Specifically implemented during significant promotional campaigns, such as holiday sales, this audit assesses the strengths and weaknesses of the campaign. It scrutinizes various aspects, including types of promotions, duration, in-store positioning, customer engagement, placement, and sales numbers.
Loss Prevention Audit
Geared towards damage control, this audit aims to prevent losses in retail stores. Auditors identify the root causes of losses, linking them to the primary sources, and leverage this data to proactively avoid future losses. Retailers can then efficiently strategize to eliminate potential losses.
Competitor Survey Audit
Administered to gather details about competitors, this audit helps formulate strategies to effectively sell products compared to other retail store brands in the locality. It collects data on competitor products, pricing, prominence, placement, positioning, and promotional strategies.
How to build a retail audit checklist?
Conducting a thorough retail store audit demands meticulous attention to detail. To ensure maximum precision throughout the process, it is imperative to consider every facet, a task made achievable by employing a well-structured retail store audit checklist. Missing any piece of information during data collection means neglecting a vital factor that could contribute to the improvement of your retail store. The utilization of a retail audit checklist becomes instrumental in guaranteeing that no data point is overlooked. A successful and insightful data collection process during a retail store audit necessitates a focused consideration of the following elements, aligning with the objectives of your virtual retail store audit:
- Location of the store
- Demographics based on database
- Presentation and merchandising of the products
- Store exterior and its appearance
- Product placement in the store
- Retail pricing of the products
- Cleanliness and hygiene in the store
- Retail planogram
- Employees and their reception towards the customers
- Product knowledge of the employees
- Facilities in the store
- Customer safety and overall safety of the store
In addition to the primary considerations, a retail store auditor may also assess other factors relevant to the type of audit being conducted, such as promotions, inventory, and operations.
During a virtual retail audit, the auditor typically follows a detailed checklist with simple yet descriptive questions about the store or products, such as:
- Was the item placed on the appropriate shelf and in the correct product category?
- Was the product's price accurately stated?
- Was the item positioned at eye level?
- Was the item displayed in front of or behind competitors?
Auditors can manually create such checklists or use customizable retail audit checklists available in the market.
Retail audits are crucial in retail management from the retailer's perspective, as they can significantly impact store operations. They are essential for delivering a strong customer experience. Engaging an experienced customer experience company like Sonata CX to conduct detailed virtual brand or compliance audits can help establish high standards for your retail store. With over 27 years of experience working with more than 100 industries, Sonata CX excels in enhancing customer experience and customer experience management, making them a valuable partner in setting up a competitive brand.
Our CX solutions are designed to transform the total customer experience through comprehensive surveys, metrics, analytics, and auditing, utilizing the CXM framework. By combining physical measurements with digital Platformation™ capabilities, we create a customer experience strategy that gives you a competitive edge.
Sonata CX is a global technology company specializing in customer experience (CX) measurement and platform-based digital transformation. We help businesses become connected, open, intelligent, and scalable. With a presence in over 105 markets and more than 27 years of market leadership, we offer extensive measurement capabilities and powerful, intuitive reporting and analytics platforms to enhance customer experience. Our reach spans the USA, Canada, EMEA, and APAC regions. To learn more about how we can assist you, please click here or fill out the business enquiry form below.