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As 2023 begins to draw to a close, Gartner’s look at the previous year has found that three in five (60%) global software buyers regretted their purchase.
The firm’s study revealed the acquisition and retention challenges facing -aaS providers, including online collaboration software companies, with around one-quarter (24%) canceling their contracts and a further one-third changing providers.
The good news for software companies is that Gartner spells out two of the key areas for focus: immediate responses to customer requests and the provision of enhanced implementation assistance. Both individually could prevent almost half of customers from walking away.
Businesses aren’t happy with their software subscriptions
Gartner Digital Markets Global VP of Product, Thibaut de Lataillade, noted that “software buying isn’t just a transaction,” but rather “it’s a strategic choice aligning with business objectives.”
The study reveals that customer reviews and product trials are equally as important factors when considering a vendor, with many other companies interested in product demos and having a good relationship with the provider.
That initial impression is vital because a staggering 96% of the 3,400 international software buyers said they start with a vendor list when shopping for new software, but only four brands on average even make the list. Of those, around nine in 10 (89%) purchase from their list, leaving very little room for newcomers.
Purchase regret looks to be at its highest five months into a new contract, and is likely to more affect businesses experiencing growth, and particularly, accelerated growth. Failure for software to keep up with business needs looks to be at blame for the most part.
For providers, Gartner says that giving customers dedicated account managers to answer questions and assist with implementation can help reduce walkaways.
Customers looking to be confident in their purchases should use comparison sites, consult with colleagues before committing, and consider future needs as their business shrinks or grows.
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