When you are clueless about results of financial audit, think of customer experience (CE) audit. Yes CE audits can bring out many of the causes of good or bad financial results. Unfortunately no companies engage in CE audits.
When your company's EPS is dropping, it is not necessarily due to higher capital deployment or higher input cost, it can be because of your lower pricing capability, it can be because of higher ad/marketing cost, it can be because of higher customer turnover, it can be because of low per capita buying by existing customers, it can be because of your faulty customer services design & it can be because you are neither listening nor watching your customers.
VOC & Journey Maps / Customer Mirror are some of the ways in which you can know about kind of customer experience your enterprise is delivering while dealing with your customers. Remember Mystery Shopping is not CE audit. Its is just a one component of CE audit.
Financial performance is the result of all these activities company performs during the year. We are too keen to know the result & then analyse it superfluously without even thinking about CE.
Its like focusing on exercise for weight loss results without focusing on diet. If you keep analyzing and changing your exercise without proper diet plan it is neither a right analysis nor it will give desired results even in future.
Our intake is critical for weight loss programme, exercise just support and supplements it. You can reduce weight with proper and timely diet without exercise but without diet discipline only with exercise weight loss is not possible and even if it is achieved it is not sustainable.
Likewise without focusing on customer experience part , financial results shall not be analysed & it can not remain sustainable. For long term sustainable financial results which every company desires, focus on CE is critical prerequisite for analysing the results.
Therefore immediately after financial audit , companies must commence CE audits. Both put together is the right recipe for performance improvement initiatives. Without CE audits and knowing what kind of CE your company is delivering , all performance improvement initiatives will be incomplete and won’t give the desired outcome.