Over two-thirds of UK businesses have experienced regret over their software purchases made in the past 12-18 months, reveals a new study by Capterra UK. The challenges, identified as the struggle to align technology with strategic goals (40%), funding hurdles (37%), and vendors justifying their purchase (33%), have led to dissatisfaction among businesses who are striving to leverage technology to their advantage. However, despite the disappointment with previous acquisitions, businesses are not deterred from exploring technological advancements. Notably, upcoming IT security software investments emerge as a priority for 28% of UK businesses in light of the rising cyber threats.
A significant 68% of British businesses expressed regret with a technology purchase they made recently. Of these businesses, only a mere 29% of software buyers felt completely confident with their recent purchase decision. This dissatisfaction does not stem from inadequate customer service or onboarding processes, rather it is rooted in issues with the technology itself. For instance, 32% cited incompatibility with existing systems as their primary concern.
The regrets held by businesses are underpinned by serious implications for the overall performance of their operations. Among decision-makers harbouring regrets over a recent tech purchase, 63% reported a significant impact on their annual or long-term performance. The cost factor turned out to be noteworthy with 40% opining that the overall expenditure on the software was exorbitant. Additionally, 35% reported that their employees were unimpressed with the software, contributing further to the dissatisfaction. Reduced productivity (34%) and loss of market competitiveness (26%) were also among the stated impacts.
Identifying the technology that aligns with their business goals and needs poses a significant challenge for 40% of UK businesses. They also flagged funding the investment (37%) and purchase justification (33%) as obstacles. In an effort to avoid future regret, 30% indicated that securing the budget early in the process would be an effective change in their software selection process.
In anticipation of 2024, decision-makers were asked about their planned technology investments. Cybersecurity ranked high on the agenda for 28% of UK businesses given the increasing cyber threats. This is followed by investments in marketing (24%) and accounting (22%) tools. Beyond technology, business owners anticipate other challenges including finding new customers or clients (30%) and qualified talent (27%), and the need for employee training and supply chain management.
“The significant buyer regret informalises the need for a more refined approach to software decisions,” commented Eduardo Garcia, Content Analyst for Capterra UK. He pointed out satisfaction of employees, integration of technology, strategic planning, early budgeting, and compatibility testing as essential factors. These factors, he believed, can “mitigate risks, enhance the value of technology investments, and help businesses overcome challenges to shape their resilience and success in the coming year.”
The Capterra’s 2024 Tech Trends Survey, conducted in July 2023, engaged 3,484 respondents from varied geographical locations and across multiple industries and company sizes. The aim was to understand the organisational challenges, adoption & budget, vendor research behaviours, ROI expectations, and satisfaction levels of software buyers. It also provided an insight into buyer’s remorse.