Secret Shopping Services Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Market Research as well as Secret Shopping Services procurement trends are poised to change the business practices and procurement thumb rules. Data security and maintaining the confidentiality of client data and other sensitive information has towered over most of the discussions related to the category. Most geographies now have stringent regulations to protect data, privacy and confidentiality. Although suppliers now have a value proposition that puts data security and confidentiality at the forefront of marketing pitches, adherence to these standards have also increased OPEX of suppliers owing to increased compliance methods and requirement to change critical processes.

Proliferation of supply pool in regions such as APAC is expected to intensify supply market competition. This will compel service providers to compete on price points to attract new buyers, which is expected to offset some of the increase in procurement cost arising out of increasing supplier OPEX.

Most suppliers of Secret Shopping Services are moving up the value chain and offering integrated services that go beyond just Secret Shopping Services. Buyers are increasingly collaborating with vendors who can offer one-stop solutions as they now have fewer suppliers to manage and can achieve greater cost savings that arises out of awarding a larger contract to a supplier.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Secret Shopping Services procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers must clearly define clauses related to ownership of subcontracting services that are not part of their preferred partners' portfolios to ensure service consistency and control of sensitive data that are shared with subcontracted firms. The roles and responsibilities of subcontractors should be clearly defined by supplier to provide visibility on the quality of main service provider vs sub-contractors.

Contract should outline the expected levels of service with respect to recruitment of panel, data interpretation, relevance of technologies used, outcomes expected and other related processes by the service provider.

Buyers must provide all key requirements in detail and ensure that service providers offer precise details regarding processes, systems, manpower, and expected outcome. Regular and effective communication between buyers and service providers are crucial during the contract formation phase, as well as across different phases of the project.

Secret Shopping Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Secret Shopping Services procurement. Some examples include: