Point of sale audits: what data can be obtained from monitoring?
If a chain has more than one shop, it must monitor each outlet to get reliable sales figures. This is because even when the same product is supplied, sales results are often quite different depending on the location of the outlets.
Note: Such audits are not recommended for full-time staff, as their reporting will be more or less subjective.
Space should be allocated for the sale of various accessories, maintenance products for electrical equipment and other small items that are often available in similar outlets. These items can be placed on shelves or in special niches if the items are small. It is important that consumables are presented in the same department as the appliances themselves. This will enable better orientation in the hall and increase the chance of impulse buying.
What information can be obtained?
To determine why such audits are necessary, it is necessary to understand what a point-of-sale audit is. This type of monitoring is a comprehensive review of all key processes - reception of goods, write-offs and the sales phase itself.
In carrying out an audit, the following tasks are carried out:
1
Identification of segments and positions that act as sales leaders
2
Assessment of individual category representation across the network as a whole, and per outlet
3
Analysis of the display - its efficiency and compliance with approved plans
4
Checking the availability of all promotional materials and their quantity - brochures, catalogues, banners, etc.
5
Monitoring the use of branded equipment, checking its condition
6
Control of the quality of service by the staff - timely updating of product information (price tags), replenishment of the right amount of goods on the shelves, etc.
7
Comparing the results with competitors
An important step would be to collect statistics on the age and income level of buyers, the average duration of purchase, etc. This allows you to identify the most profitable items for sale.
The information obtained is intended for making recommendations. These are needed to optimise the operation of the outlet and the chain as a whole. Often the categories of goods that can be increased or decreased in the shop, as well as other aspects related to the design of the space and the work of the staff, are specified there.
1
Products that are in the highest demand are best placed in the "hot" areas - in front of the entrance and the cash register.
2
At arm's length, display items with an average price tag, budget ones on the lower shelves.
3
More expensive models should be placed closer to the entrance so that they are the first to catch the visitor's eye - this will help to increase the average basket value
How is an audit carried out?
This can be a proactive procedure, where the organisation's management commissions an audit for an in-depth analysis of the quality of work. Audits may also be carried out discreetly. Usually such monitoring is chosen if there is any suspicion of fraud or breach of legislation.
When carrying out inspections, special forms are filled in in advance, tailored to all the specificities of shop's operations. In some cases, additional photographic or video evidence is taken in order to obtain more accurate and comprehensive results. All these materials are attached to the final report.
The frequency of inspections varies. It may be a one-off activity required to produce a snapshot of the quality of the company's performance. If the chain is experiencing certain problems - declining footfall, declining profitability of individual shops, etc., periodic audits are appropriate. It will allow comparing data and determining the effectiveness of the use of certain tools.