The purpose of this blog post is to give you a quick summarized version of the extremely valuable detailed guide to 2024 Global Software Buying Trends that Gartner makes available to all of us.
If you are in the business of selling B2B software, there are key trends impacting B2B software purchases and you can leverage these trends to appeal to buyers at each stage of the buying journey.
Here is my summary of the B2B Software Buying Trends report for you:
Take note -
The 71% of businesses who report that they are extremely likely or certain to invest in AI-powered software this year are looking for VALUE and INNOVATION at a cost-effective PRICE POINT.
The Stages of the B2B Software Buying Journey
This is a critical piece of information to take note of because it may mean you need to optimize your sales process in many cases. The old way of selling is long gone. Accept it.
Stage 1: Recognizing the need for software
In this awareness stage, buyers recognize a gap, a problem, or an untapped potential that can be addressed through software. This is the critical moment when they realize the need for change.
At this stage, the business need becomes clear for buyers, and their primary purchase motivation often comes from a desire to maximize productivity, improve operations, or reduce security vulnerabilities.
Take note - they are not even talking to you yet
If the majority of the buying decisions start off the back of the desire to maximize productivity, improve operations, or reduce security vulnerabilities
this means you need to ensure your messaging is aligned across every single digital asset (real estate) you have from website to demos to sales decks and very importantly an optimized SEO strategy to give you the best SERP results.
Stage 2: Gathering Information during the B2B Software Buying Journey
When they identify a problem, they start their research to find software options available to them. This is where your customer reviews and ratings are critical with 98% of buyers reading reviews before making a purchase.
Take note - they are not even talking to you yet
If 98% of buyers are reading on average 10 reviews before even reaching out to you then sales and marketing teams need to establish a strong presence on high-traffic software review platforms.
They want to read verified reviews from your existing customers so if you not making an impact and delivering value for your existing customers, you have a problem.
Stage 3: Evaluating Software Options
The evaluation process takes approximately 5 months. During the evaluation stage, 50% of buyers are concerned with your ability to provide integration support and your willingness to collaborate.
Your sales teams understanding of the business issue/situation and effectiveness of your product demonstration are significant factors that influence their decision making.
Pricing, Pricing, Pricing is the biggest deal breaker for 50% of buyers at this stage.
Take note -
Can you notice what is missing from your Sales & Marketing Process yet?
Is your pricing easily accessible and easy to understand?
Can a potential buyer see the value and ROI of your software product without talking to your sales team?
Do you highlight integration information and how you will collaborate with them to customize the solution to meet their requirement?
Stage 4: Purchasing Software
Shortlisting potential software providers is a crucial point in the software buying journey. Software purchases involve on average 5 stakeholders, to create a final list of vendors. If your software brand makes it to this shortlist, your odds of securing a potential buyer’s business increase significantly.
Take note -
To boost your chances of making it to the final vendor shortlist, build your product’s credibility with the various stakeholder roles involved in the purchase process.
Consider who is on the software buying team and then tailor your messaging to the individual needs of each role involved in the purchase decision. Keep in mind that most purchase teams include members from IT and finance backgrounds to make an informed choice and avoid cost misalignments.
Stage 5: Rightsizing Software Post-Purchase (absolutely critical in the B2B Software Buying Trends 2024)
Post-Purchase is the moment of truth that influences customer success.
The top 2 reasons for modifying a software purchase are a superior alternative and dissatisfaction with the software cost.
Take note -
To improve Customer Retention and reduce Churn, you need to get your customers up and running quickly, ensure they don't struggle and use your resources to help your customer derive value from their purchase.
After spending hours delving into these findings in the B2B Software Buying Trends 2024 Report, I went back and reviewed some of my previous newsletters I shared earlier this year to see if my predictions and views were still valid.
If you interested in taking a look at them here are the links.
Please go ahead and download the detailed Gartner Report here: