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According to Gartner, in 2024, buyers will increasingly focus on cost efficiency, AI capabilities, and enhanced security.
The report revealed that 61% of buyers seek upgrades to increase the functionality of recently purchased software.
The need for upgrades reflects the continued pursuit of optimization of technology tools to improve performance and ROI. At the heart of these decisions are 98% of buyers who rely on user reviews in their decision-making process and have higher trust in more recent reviews.
Four key priorities for software buyers
To help SaaS companies attract and retain customers, Gartner has identified four top priorities for software buyers in 2024.
Cost remains a key factor in software purchases
Software buyers are actively evaluating their budgets and expect fair pricing in terms of included features. Software buyers are price sensitive, with 31% replacing software because it was too expensive. Cost is the most important factor for buyers looking for new software. In fact, 53% have disqualified a vendor because the price didn’t meet their expectations.
In-demand AI capabilities
Software buyers are demanding more features, especially AI features that increase efficiency and productivity. 92% of companies are considering investing in AI-powered software in 2024. According to Gartner, spending on AI software by 2027 is expected to increase to $297.9 billion, with a compound annual growth rate of 19.1%.
Security concerns drive purchases
Software buyers are concerned about security as cyber threats continue. He said 47% of software buyers said concerns about security and cyberattacks prompted a purchase within the past 12 months. Security credentials, reputation, or data privacy practices are the top reasons why 46% of buyers chose a vendor for their recent purchase. Furthermore, IT security software is the top purchasing category.
Buyers rely on recent and verified reviews
Software buyers rely heavily on reviews when making purchasing decisions. Recent reviews are more likely to reflect the software product’s latest features and support features, giving you accurate information to help you make decisions. Therefore, 92% of buyers say that they are more likely to trust reviews written within the past year and prefer reviews that are verified by third parties.
“In a time of rapid technological advancement and economic uncertainty, the ability for software providers to adapt and remain competitive is essential, and opportunities for growth certainly exist,” Gartner Digital Market Vendor advises Caroline Hogan, Senior Director of Marketing. “SaaS companies can tailor their products to current market demands, such as advanced AI and security features, while also recognizing the importance of customer reviews in building trust and confidence with future buyers. I understand.”
Software investment is expected to increase this year, highlighting the importance for providers to understand buyer trends and use them to their advantage.
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