An In-Depth Look at Software Purchase Regret

Welcome to Capterra Tech Insider, the one-stop newsletter for technology, software and service insights, and resources you need to grow your business??.

As we approach the end of 2023, and many businesses are planning for the new year, we’re looking at 2024 software trends from our latest research and sharing some tips for finding and evaluating new software.

58% of businesses regret their recent software purchase

Simply put, most U.S. businesses buy the wrong software, according to our 2024 U.S. Tech Trends Report.

The problems start with the initial list of vendors—something that nearly all buyers (98%) make when buying software.

91% of these buyers go on to purchase from their initial list “almost always” or “most of the time,” and then regret their purchase decision 60% of the time.

More than anything, buyers need better sources for creating a stronger initial list in order to increase their odds of success.

So, how do you choose the right software for your needs?

Here are some other ways companies can reduce software purchase regret, according to our data.

1. Having a mix of technical and non-technical team members help make the decision will lower the chances of purchase regret. The more technical members can handle details surrounding things like data migration and integration with other systems, while the non-technical members can evaluate features and try products to see if they’re easy to use.
2. Define specific goals for your purchase. Whether the goal is to increase customer satisfaction by 10% or reduce the risk of a cyberattack by 60%, having defined, measurable goals with your software purchase can help you determine if your decision was the right one. Communicating these goals, and using a feature comparison template, can better align your purchasing team around which products are most likely to check all the necessary boxes.
3. Understand the total cost of ownership (TCO). While software companies may advertise a certain price on their website, that usually only covers the cost of the actual software license. On top of this price there are add-on fees for things such as setup, data migration, user training, and customer support. Asking about and knowing the TCO for a product will keep your expectations in line and ensure your purchase doesn’t exceed your budget.
4. Make a decision in three months or less. Our data shows the companies that take decisive action on a software purchase are the least likely to experience regret.

?? News stories

Every month our insights are featured in leading media outlets. Check out these popular stories:

?? Forbes - How Companies Are Hiring And Reportedly Firing With AI

?? Bizwomen - Strategies: Managing Successful, Profitable Business Change

?? Digiday - Amidst Social Media Fragmentation, Marketers Question Threads’ Value After Initial Surge

?? Expert opinion: How to leverage the power of AI without compromising your business.

It’s possible to harness the power of emerging technologies like generative AI without compromising compliance, ethics, or the reputation of your business. Leading tech ethicist, David Ryan Polgar, leading tech ethicist, told us how. Watch below.

?? Top-rated software categories: Capterra Shortlist?:

Each month we award the leading software in each industry the Capterra Shortlist award. This award is given to the best software tools according to our unbiased user reviews. December’s highlighted categories are…

• Marketing Planning
• Payroll
• Employee Engagement

?? Most-read articles this month

Knowledge is power, but prioritizing it can be tough with changing priorities. Stay in the know easily with the articles that have helped other professionals the most.

Enjoy the holiday season?? and we’ll be back with more software insights and advice in January! ??