Most people confuse Retail Audit Measurement Index (RAI) with Store Observation Retail Audit Tracking (SORT) research methodologies and outcomes because, on the surface, both involve “going to stores and collecting data.”
But underneath, they are fundamentally different research methodological approaches or systems and they produce different outcomes and results. The confusion comes from 8 predictable reasons that show up repeatedly in Ghana’s and most African countries’ Fast Moving Consumer Goods (FMCG) ecosystems.
Here is the clearest breakdown of the confusion:
- Both activities happen in stores/outlets — So people “Assume” they are the same
To the untrained eye, a field auditor with a tablet and a sales representative with a checklist look identical. Because to them, both are:
• Visiting stores/outlets
• Checking products
• Recording information
This creates the illusion that they are doing the same job, even though the purpose, sampling, and Key Performance Indicators (KPIs) are completely different.
- Many companies do not train their research or market intelligence teams on the differences
In Ghana and some Africa countries, most FMCG companies:
• Mostly train sales teams on execution tracking
• But do not train them on market measurement methodology
So Business Owners, Sales Representatives, Trade Marketers and even some very Senior Managers assume, for example:
“If I checked 20 stores and saw my products in at least 18 of them, then my numeric distribution is high.”
This is methodologically incorrect and wrong, but it feels intuitive—so the confusion persists and people do not want to correct it.
- Store observations produce numbers — and some people mistake numbers for measurement
Store observation tracking generates numbers like:
• Availability: 80%
• Price compliance: 70%
• Shelf presence: 60%
Because these look like “KPIs,” people assume they are market KPIs. But they are execution KPIs, not market measurement KPIs.
This analogy and mistake is like confusing, for example:
A blood pressure check results
with
A full medical examination results
Both involve numbers, but only one is diagnostic.
- Lack of understanding of sampling and representation of the universe or the population
This is the biggest technical reason. Because, most people do not understand:
• Representative sampling
• Weighting
• Projection
• Channel stratification
• Statistical confidence level
• Relative Standard Errors (RSA)
• And other technical complexities
So they assume:
“If I saw my brand in 10 stores, it must be true for all the stores and therefore, the whole market.”
Retail Audit Measurement is built on Statistical Science. Store Observation Tracking is built on “convenience” sampling.
Because the sampling logic is invisible, people collapse the two into one.
- Consumer, Market Intelligence and Sales/Marketing Teams often use observation data to “Make Strategic” claims
This is where the confusion becomes dangerous.
Sales teams often say things like:
“Our distribution is 90%.”
“Competitor X is losing share.”
“Our price is stable across the market.”
But these statements are based on store observations, not market measurement.
When Business Owners, CEOs and Senior Managers hear these statements repeatedly, they start believing that “Store Observation = Retail Audit”. But they are never the same.
- The phrase “Retail Audit” misleads some people
Both methods/terms contain the words “retail audit”, which creates semantic confusion. In fact,
“Retail Audit Measurement” = market measurement and execution
“Store Observation Retail Audit Tracking” = execution monitoring
Because the phrase “retail audit” appears in both, people assume they belong to the same methodological family. But RAI is based on robust statistical and mathematical sciences whilst SORT is based on intuition.
- Some Research Agency/Companies or Firms market store Observation as “Retail Audit”
Especially, in some emerging markets like Ghana and other African countries, some research companies sell only store observations, but they label them as “Retail Audit” to appear competitive with specialised and recognised research agencies like SumsureIQ or NielsenIQ.
This pollutes the terminology in the industry.
- Business Owners, CEOs and Senior Managers want “Fast Data” — and Store Observation is “Fast data”
Retail Audit Measurement is:
• Slower but provides full view of the market
• More expensive and huge initial investment required
• More complex and scientific
Store Observation is:
• Fast but not full view of the market
• Cheap and required low initial investment
• Easy and intuition based
Because of these, some CEOs and Senior Managers often prefer the simpler method and unconsciously elevate it to the status of a Full Retail Audit.
CONCLUSION
In conclusion, the non-obvious insight is that people confuse the two because they confuse “seeing” with “measuring.” Store observation is “seeing”. Retail audit is “measuring”. Seeing feels intuitive. Measuring requires mathematical and statistical discipline and understanding of the complex nature of the FMCG universes. Lastly, Store observation is cheap and Retail Audit is more expensive and most people are price sensitive and may ignore the complex outcome for cheap results. That is why the confusion persists.
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SumsureIQ is a full service market research agency. We provide a variety of market research products based on robust econometric, mathematical and statistical approaches. In Ghana, SumsureIQ is the only research agency or company providing monthly Retail Audit Measurement Index (RAI) as standard.
Our main product is Retail Audit Measurement Index (RAI) for which we have monthly data from January 2022 to date for over 75 segments/categories. From 10 retail channels (including Modern Trade and Petrol Marts) across all the 16 regions in Ghana. We also provide Retail Store Observations Retail Tracking (SORT). However, these are bespoke researches based on client specifications/requirements and objectives. For more details on our services and product range, visit our website at www.sumsureiq.com
Are you a manufacturer/Retailer, a stakeholder or a player in the FMCG market in any African country? Are you leveraging real-time retail insights to scale your business for growth?
If you wish to leverage real-time retail audit data to improve your categories and brands share performances, SumsureIQ (www.sumsureiq.com) is ready to have a discussion with you.
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