Functional Diversity on Buying Teams - More Experienced Teams or the AI effect?

As we continue to dig deeper into the results from our latest business buyer survey, we are seeing some big differences from the first time we focused on buyers working in six specific functional areas (Sales, Marketing, Customer Service, Human Resources, Finance, and Supply Chain). These changes continue to point to improved buying practices.

In the past, I would say that much of the regret we see around tech purchases has been driven by frustrations with the buying process even more than any solution issues, but that seems to be shifting. As buyers get better, providers need to continue to improve the whole product and whole process experience (consideration to value) to stand out and grow.

Let me share one example. In 2022, we noticed that many of these functional areas largely "went it alone." The buying team was primarily folks working in the function or maybe one or two external groups was involved--for 83% of the purchases studied (3048 total). This year, that has changed dramatically, with 65% of the 3068 purchases having 4 or more groups involved.

Now, there are some variations in our sampling methodology (we have more countries included in this year's study and changed some of our criteria relative to size. But some spot checks indicate that that did not really impact this story (Note for clients: We will be producing research with YoY comparisons where we have normalized the two samples).

The other interesting thing is that in 2022, the likelihood of a high-quality deal increased as the number of groups expanded. This year, there are some fluctuations, but not a lot of variation (hence the comment on other factors driving HQD sentiment.

I have two hypotheses about the increased rate of multi-functions teams:

• Increased experience - Business buyers are realizing that they often need help from others to drive success or address governance models. Rather than being surprised by this, they get those teams involved early.
• The AI effect - For most of the purchases in this study, respondents said GenAI capabilities were a key factor in the product decision. With all the hype around AI, this might have driven folks to bring others in ahead of time to share in the work, and the risk, around the decision.

More to learn, and we'll keep digging. Initial research is making its way though the Gartner process, clients can expect things soon. Additionally, I'll be presenting at a client's only webinar with a deeper first look at some of the key findings from the study on February 19th. Clients can register here - https://www.gartner.com/webinar/virtualevent/5979672?ref=solrWbnr&refval=451570925&

The articles in this newsletter do not follow Gartner's standard editorial review. All comments or opinions expressed here are mine and do not represent the views of Gartner, Inc. or its management.