8 Warning Signs of Software Purchase Regret
Why Software Buyers Experience Regret:
Strategies to Attract and Keep the Right Customers
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of software buyers have experienced regret in the past 12 to 18 months and nearly a quarter of them canceled the contract with the tech provider.
60%
Warning Sign No. 1
Buyers that spend more time evaluating the purchase
Businesses that spend more time evaluating software have higher rates of purchase regret.
1 month
2 months
3 months
4 months
5 months
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q28: How much time, in total, does your organization usually take to evaluate options and determine which software products fit your needs? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers in an accelerated growth phase
Businesses that are in an accelerated growth phase experience higher rates of software purchase regret than those in growth, static or decline phases.
Warning Sign No. 2
38
%
48
%
50
%
68
%
76
%
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q11: How would you characterize the state of your business over the next 18 months? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
47
%
Decline or significant contraction
Predicting a slight or substantial decline in business activities and market share
%
53
Foreseeing relatively static business conditions with no significant changes
Static
%
59
Expecting steady and moderate growth in operations and market presence
Growth
%
68
Anticipating significant expansion and increased business opportunities
Accelerated growth
Buyers in the finance or IT industries
Businesses in the finance and IT industries have higher-than-average rates of software purchase regret compared with other key industries.
Warning Sign No. 3
%
70
Financial services
IT
%
Professional services
%
58
Manufacturing
%
57
Hospitality, services and communications
%
54
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q3: What is your organization’s primary industry classification? If your organization participates in more than one, select the one industry in which you are most involved. Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers based in India, the U.K. or Australia
Businesses in India, the U.K. and Australia have higher rates of software purchase regret than those in other countries.
Warning Sign No. 4
IN
UK
AU
JA
US
DE
FR
CA
BA
79
%
68
%
63
%
59
%
58
%
58
%
58
%
56
%
41
%
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q1: Where is your primary workplace located? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers that are midmarket companies
Businesses with 250 to 999 employees report much higher rates of software purchase regret than smaller or larger businesses.
Warning Sign No. 5
68
%
57
%
60
%
60
%
Small businesses
(< 250 employees)
Midmarket companies
(250 to 999 employees)
Small enterprises
(1,000 to 4,999 employees)
Large enterprises
(5,000 or more employees)
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q6: How many full-time equivalent (FTE) employees work for your organization worldwide? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers with less than five years in business
Early-stage businesses report the most software purchase regret.
Warning Sign No. 6
(1 to < 5 years)
Early-stage businesses
(5 to < 10 years)
Young businesses
(10 or more years)
Mature businesses
48
%
64
%
76
%
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q5: What is the age, in years, of your organization? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers that form a purchase team from a single department
Businesses that form a purchase team composed of a single (non-IT) department report more regret.
Warning Sign No. 7
Software buying team
A formal team with people from various departments
A formal team of solely internal IT professionals
A formal team from a single non-IT department
An informal IT team formed for each evaluation
An informal non-IT team formed for each evaluation
Use external contractor for business software purchases
55
%
62
%
78
%
64
%
53
%
40
%
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q45: Who handles new software evaluation, selection and/or purchase-related matters in your organization? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3,484)
Buyers that fail to use product comparison sites
Businesses that do not use product comparison sites when shopping for new software report higher rates of purchase regret.
Warning Sign No. 8
Source: Gartner Digital Markets’ 2024 Tech Trends Survey. Q32: When putting together your initial software vendor list, which of the following are the most important sources of information for you? Q34: Do you have buyer’s remorse or regret for any of the technology purchased in the past 12-18 months? (n = 3484)
Do NOT use comparison sites
DO use comparison sites
Regret for one purchase
Regret for multiple purchases
29
%
35
%
26
%
28
%
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