Negative attitudes may be ingrained within B2B technology buyers
In a recent survey conducted by Gartner, Inc., it was discovered that a significant 60 per cent of technology buyers involved in decisions to renew or expand “as-a-service” agreements express regret for nearly every purchase they make. This represents a notable 6 per cent increase from the previous year, highlighting the challenges faced by buyers in the enterprise technology market.
The survey, which took place from February to March 2023, gathered insights from 1,503 respondents from organizations with an annual revenue of at least $US50 million. The participants hailed from Western Europe, North America, and Asia/Pacific regions, providing a comprehensive view of buyer behaviour and attitudes.
Hank Barnes, a Distinguished VP Analyst at Gartner, expressed concern over the high levels of regret, suggesting that negative attitudes may be ingrained within B2B technology buyers. Barnes stated, “Regret is a known issue with enterprise technology purchase decisions, and it raises the question of whether business-to-business technology buyers have negative attitudes toward purchases by default.”
The study highlighted several key factors driving buyer regret, including frustrating buying experiences, poor communication, and an overwhelming number of options to consider. These challenges often lead to longer buying cycles and conflicting objectives within buying teams, especially when pursuing expansion opportunities.
Interestingly, despite the desire for a seamless purchasing process, the survey revealed that technology buyers prefer minimal interactions with sales teams. An overwhelming 95 per cent of respondents indicated a preference for a fully digital/online experience for their expansion purchases, highlighting the growing importance of streamlined and efficient digital platforms.
Barnes emphasized that the rising levels of pessimism and regret among enterprise technology buyers are typically not tied to the provider or the products themselves. Instead, they result from ineffective or dysfunctional behaviours within the buying team.
To address these challenges, Gartner recommends three key actions for product leaders during deal negotiations:
Enable customer-facing teams to identify accounts displaying behaviours associated with regret, such as a desire to revisit decisions or conflicts within the buying team.
Expand buyer enablement content to build confidence and guide buyers through the decision process, reducing conflict and delays.
Increase the number of digital activities, providing tools like digital checklists and shared workspaces to streamline the purchasing experience.
Addressing pessimism and regret requires collaboration between technology providers and their customers. By taking these actions, product leaders can positively impact their customers’ buying experiences, resulting in long-term benefits for both parties and the market.
As technology continues to shape the business landscape, understanding and addressing buyer regret will be vital for organizations seeking successful and satisfying technology acquisitions.
Tags: B2B technologyGartner
