The Different Types of Internal Audits Explained

The Different Types of Internal Audits Explained

In the business world, the word ‘audit’ is often associated with nerves and frustration. However, audit functions are integral to a company’s survival and prosperity. There are two primary types of audits, internal and external. In this blog, we will be discussing why internal audits are important, what they are, and the types of internal audits.

What is Internal Audit?

Typically, an internal audit is a department or an organisation within a company that’s responsible for providing unbiased, independent reviews of the company’s systems, business organisation, and processes. 

An internal audit serves as an objective source of information to senior leaders and governing bodies of an organisation about the organisation’s risk environment, control environment, operational effectiveness, and compliance with laws and regulations. 

Among other things, internal audits help determine the reputation of an organisation, its efficiency, growth strategy, impact on the environment, and how it treats its employees. 

Why Do Companies Have Internal Audit?

Having an internal auditing program in place is essential for monitoring and ensuring that all your business assets are properly safeguarded and protected against threats. Additionally, it is vital for verifying that your documented policies and procedures match your business processes.

Internal auditing holds several benefits, including: 

  1. Providing objective, unbiased insight into your company. This objectivity ensures that nothing is being sugar-coated or ignored due to personal or professional biases. 
  2. Improving the efficiency of your business operations by identifying control recommendations aimed at improving these processes. 
  3. Evaluating potential internal risks and protecting your assets through systematic risks assessments, saving your company time and money.
  4. Helping to ensure legal compliance in your business processes which can help you avoid fines and gain a trustworthy reputation.

Types of internal audits 

A significant portion of the internal audit procedure as a whole is based around financial reporting within a business, the generally accepted accounting procedures (GAAP), and financial statements. However, there is also a need for other types of internal assessments that internal auditors can evaluate. The types of internal audits that we at Customer Perceptions provide are: 

  • Company awards: To audit your outlets across various metrics for your own internal rewards programme, so that businesses can reward the key players that keep your business running.
  • Retail Audits: This is used to audit the availability of products, stock levels, price changes, regulatory compliance and the quality of your date checks. These audits will help companies measure and monitor their retail success.
  • Merchandising audits: Takes a look at your presentation and merchandising standards to ensure that the product is positioned to be appealing to consumers.
  • Health and safety audits: aimed at assessing and optimising the health and safety standards of operations. Auditors look for hazards and workplace risks that can jeopardise the health and safety of individuals on the premises.
  • Pricing audits: Takes a look at a businesses’ planogram and point of sale to determine if the pricing is correct and consistent. This audit will help you avoid missteps within your pricing strategy as you can’t fix problems that you aren’t aware of.
  • Promotional compliance audits: It is important to know that products are being promoted adequate during promotional periods. That is precisely why this type of audit is crucial for any business.
  • Food and beverage standards audit: This audit will take a look at food and beverage compliance, quality, safety and hygiene, It is important to regularly audit these standards to avoid mishaps or quality failures.

If you are in the retail industry and are looking to audit your business, Customer Perceptions has a several decades-long track record of cost-effective, expert auditing services. At Customer Perceptions, we work with our clients to tailor and design the particular audit criteria appropriate to their business needs. Our dedicated, professional team (with the help of field researchers) can help you measure your customer experience, audit your business, and gather valuable consumer insights. Contact us today for assistance.

3 Reasons Why Customer Experience Increases Sales

3 Reasons Why Customer Experience Increases Sales

Do you remember a time when, from the second you walked into a store, you were greeted by friendly staff, a welcoming atmosphere, and the entire experience left you feeling great? You likely left the store with a huge smile on your face, itching to tell your friends and family about the amazing experience you had and thinking that you need to go back to that store. 

Now think back to when you had a terrible experience trying to buy something or order a service. The anger and frustration made your blood boil, and you swore to yourself that you would never use that business again. 

These two feelings show the importance of Customer Experience (CX). CX is the result of every interaction a customer has had with your business and the impression your brand leaves in their mind. The entire customer journey determines whether they will return to your business or not, which is why a customer-centric CX strategy is vital to the success of your business. 

This blog will discuss three reasons why customer experience is essential to your business success and how a positive CX will drive sales and increase your revenue. 

Customer Retention is More Profitable Than Generating New Customers

The business world has a lot of controversy regarding which is better, customer retention or acquisition. However, the fact of the matter is that customer acquisition, while rewarding, can be highly time-consuming and expensive. 

As a business, building loyalty and a positive association with a new customer takes time and money. In contrast, the costs associated with repeat business are considerably lower, from both a sales and a marketing standpoint. With repeat business, your ad spend is lower because you have already built a connection with these customers, so you have a better chance of making a sale. The book Marketing Metrics explains that the sales conversion rate for an existing customer sits at around 60 – 70%, whereas an entirely new prospect has a conversion rate of only 5-20%.

It is vital to build a CX strategy that is centred around long-term customer loyalty. Repeat customers are statistically far more likely to make a purchase when they visit your business. They are also generally willing to spend much more because they are satisfied with their customer experiences and know the level of quality and service they will receive. 

Customer Experience is Free Word-of-Mouth Marketing

The impression that your customers have of your business is now far more likely to be shared thanks to the help of social media platforms and the internet. If your customer experience is positive, loyal customers will become advocates for your business and share their experiences with others, helping attract new customers at no extra cost to you. When your customers share their positive experiences, it piques the curiosity of others, so people are encouraged to interact with your brand to see the top-notch service for themselves. 

While a negative online review can deter prospective customers, positive online reviews strengthen the online presence of your business, increasing the visibility of your brand and attracting new clientele.

A Better Customer Experience Sets Your Brand Apart from Your Competitors

When your business provides a customer experience that exceeds expectations, you take your customers on a journey that breeds an emotional connection and loyalty. You won’t need to ‘remind’ customers why they should use your services or buy your products because they will already know. 

A review conducted by SuperOffice determined that 86% of buyers are willing to pay more for better customer service. So even if your competitors may have lower prices, if your customer experience surpasses theirs, customers will be more likely to use your business. When developing your CX strategy, consider rewards programs like coupons, free shipping offers, and lower prices for repeat customers, especially if your company operates in the e-commerce sector. It will set your brand apart and increase the positive perception of your business even more. 
Customer Experience is a foundational element of the success of your business. If you need assistance improving your strategy or are curious about how you can improve your customer experience, contact Customer Perceptions today or visit our website to view our list of expert services.