Ineffective or dysfunctional behaviors lead to purchase regrets
The latest research from Gartner, a world leader in research and advice for businesses, finds that 60% of technology buyers involved in decisions to renew or expand 'as-a-service' contracts regret nearly every purchase they make. These feelings of regret are largely driven by the challenges of acquiring technology with cross-functional purchasing teams and budgets.
Hank Barnes, Vice President and Analyst at Gartner
"Regret is a known issue in enterprise technology purchasing decisions," said Hank Barnes, vice president and analyst at Gartner. “The issue is significant enough to raise the question of whether technology buyers from B2B companies (Business to Business) have negative attitudes towards shopping by default”.
Gartner conducted the worldwide survey of 1,503 respondents from companies with annual revenues greater than US$ 50 million to understand the behavior of B2B buyers and detect how they approach renewal or expansion decisions for technology contracts that are on the subscription model (pay as you go). the use).
Research found that technology buyers' negative attitudes are shaped by frustrating shopping experiences, poor communication and an overwhelming number of options to consider. These issues create challenges, such as longer buying cycles and conflicting objectives, within companies and their diverse teams as they pursue expansion opportunities.
Despite these challenges, the survey finds that technology buyers prefer to have minimal interactions with sales teams, with 95% of technology buyers indicating a preference for a fully digital/online experience for their expansion purchases. “Pessimism and regret continue to mount for corporate technology buyers,” says Barnes. “This often has little to do with the vendor or the products themselves, but is driven by ineffective or dysfunctional behaviors within the purchasing team itself.”
Gartner recommends that product leaders take three actions to negotiate an efficient expansion:
- Allow customer-facing teams to identify accounts that exhibit behaviors associated with regret. These teams should be on the lookout for technology buyers who want to revisit decisions in the buying process, buying team conflicts, and lack of knowledge of the steps required to complete the acquisition;
- Expand buyer enablement content to build confidence in the buying process. Advise buyers on jobs that help reduce conflicts and delays in the decision process;
- Expand the number of activities that can be carried out digitally. Two examples of this include introducing digital checklists, which guide buyers through an effective process, and providing a shared workspace where teams can review objectives and help create business cases.
“Pessimism issues are something providers and their customers need to work together to resolve,” adds Barnes. "This will have a long-term positive impact for product leaders, their customers and the marketplace."
More details on the top strategic priorities for technology product managers can be found in the free ebook Gartner 2023 Leadership Vision for Technology Product Managers. Gartner for High Tech equips technology leaders and their teams with role-based best practices, industry insights and strategic insights into emerging trends and market shifts to achieve their mission-critical priorities and build the successful organizations of tomorrow.
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