Buyer behaviour in 2022: Insights for UK firms adopting technology in 2023

The COVID-19 pandemic shook up business operations and influenced decision-making processes when it came to adopting new technology. Businesses need to make choices that can streamline their processes, but what factors do they look for when choosing a software vendor? We surveyed 251 decision-makers in UK firms about their tech purchase experience in 2022 to gain insights into the barriers companies need to overcome to make the right software purchasing decisions in 2023. 

In recent years, businesses have been adopting new technologies and approaches to adapt to new conditions brought on by the pandemic. In the first article of our two-part series, we saw that UK firms are committed to their digital transformation strategies. Many companies plan on increasing their spending on software in 2023, with particular attention being put on cybersecurity, marketing, and IT management. 

Businesses are turning to technology adoption to survive. As a result, the stakes for software purchases are high. With so many different technologies and vendors available, choosing the right software solution can be challenging.

We surveyed 251 UK business leaders and managers about their experiences when purchasing software in 2022 to help us forecast buyer behaviour for 2023. By delving into their challenges, we provide insights for UK businesses on the factors to consider when choosing software this year. 

What was the most purchased software in 2022?

In our survey, we asked UK business leaders and managers what types of software they bought in 2022. IT architecture and security was the top choice, with 45% of companies investing in this technology last year. This was followed by helpdesk and support software, purchased by 43% of survey-takers, and both accounting and finance software and IT management software, chosen by 41%. 

UK buyers are investing in IT architecture and cybersecurity

Data breaches and cyberattacks are increasing every year, and UK SMEs are vulnerable to ransomware attacks. Capterra’s 2022 Ransomware Survey found that businesses often cede to an attack and end up paying costly fees that, in most cases, were higher than £8,000. Therefore, it makes sense that UK companies set out to buy IT architecture and security software to safeguard themselves against these kinds of attacks. 

According to our survey, businesses that invested in IT architecture and security spent an average of nearly US$29,000. However, among these firms, the majority (52%) spent in the range of US$5,000 to US$25,000.

Customer support tools are an important asset for UK businesses

Help desk and support tools were the second most purchased software types for UK firms. From the 43% of respondents who had purchased this type of software, 55% paid within the range of US$5,000 and US$25,000. 

UK businesses are aware of the importance of customer service. As customer demands evolve, companies need to cater to these preferences to foster loyalty. The same pertains to the technology these businesses purchase to improve their operations. 

Both providers and companies should take note of the value of customer support and can use technologies such as customer service tools to meet these needs. 

Similarly, businesses should review the customer support services available for the software and technology they purchase to ensure they meet their requirements. A previous Capterra study found that expectations of customer service vary across industries and countries, with 43% of UK consumers saying local companies offer better customer service than global companies. Features such as 24/7 service, personalised engagements, multilanguage support, and the ability to choose between self-service and interactions with human agents can be signs of good customer service.

Accounting and finance tools are popular in the face of rising costs

41% of respondents purchased accounting and finance software in 2022. With rising costs and the increasing risk of recession, UK firms sought better ways to handle their business accounts. Accounting software can help managers carry out multiple financial tasks that can reduce errors and automate processes. These tasks can range from invoicing and billing, performing expense tracking, and producing timesheets to inventory management, generating reports, and meeting tax compliance obligations. 

Businesses looked to strengthen their digital tools with IT management software

Another 41% of business managers and leaders bought IT management software, which helps control and monitor computer networks, operation systems, network devices, and security. With businesses using more digital tools, this type of software can cover multiple aspects of software and hardware components, while defining privileges and troubleshooting network issues.

What do businesses value when deciding on a tech solution?

Different factors can contribute to guiding businesses to select one vendor or software solution over another. Before choosing a vendor, businesses probably have determined what type of software they need and shortlisted some of the most important features they seek. We asked respondents about the other factors they take into account in their search for a software product.

With IT architecture and security topping the list of most-purchased software in 2022, it is of little surprise that when it comes to searching for a specific tool, security features as the top main consideration along with the cost of a product. 55% of respondents cited these as among the top five most important factors to consider when choosing the right software. Businesses expect their software to protect them from cyberthreats, malware, and unauthorised use. 

Respondents indicated slightly different priorities when it comes to evaluating a vendor. Choosing a vendor during the early evaluation phase that can deliver the required capabilities is vital. 61% of respondents consider four or more vendors before making their decision. Also, for 53% of businesses, it is during or after this stage that the budgets for software spending are decided. But, what do businesses consider to be the most important factors when selecting vendors?

Nearly half of respondents valued vendors with products that were easy to use. Intuitive and practical products may reduce the learning curve during the implementation phase, which many businesses consider to be a barrier to implementing technology. Businesses can evaluate ease of use by leveraging free trials. This way, users can test out the software first and give feedback to the decision-makers. 

When choosing a vendor, 39% of respondents valued security for end users and data. Security is an important factor for businesses whether they are selecting a vendor or purchasing software. However, vendors and software provide security in different ways. It is important for businesses to consider how vendors comply with the General Data Protection Regulation (GDPR). 

Businesses should be able to request information on vendors’ security and compliance measures and data privacy impact assessments (DPIAs) to ensure they have taken the right steps to comply with GDPR. Similarly, businesses should also ensure that they themselves meet GDPR compliance standards. 

Technical support capabilities are also valued by businesses. Even when contact between a vendor and a client has been established, businesses need a continuing relationship with their software provider. 37% of respondents cited technical support as an important factor in the decision-making process. 55% of respondents use support features such as live chat, email, or scheduled meetings to maintain relationships with providers.

Companies may look for specific features when determining what vendor and software to select. Still, sometimes there may be actions or traits on the vendor’s side that cause businesses to disqualify them or drop them from their shortlist.

Aggressive sales tactics and overpricing can discourage UK buyers

We asked our survey-takers to list the top three reasons for dropping software providers from consideration in their purchase of software. The principal reason, given by 47% of respondents, was when vendors set prices that were not in line with expectations. 

The second top reason was aggressive sales tactics, cited by 44% of decision-makers. Marketing and sales teams can leverage user data from customer relationship management (CRM) software to deliver, for example, personalised and targeted email campaigns. However, to avoid coming across as invasive or aggressive, vendors should take special care not to overdo the number of messages or insistence when offering their services. 

With 38% of votes, the third top reason for disqualifying software providers was negative user reviews. Qualitative commentary and feedback were the essential factors of user reviews for 52% of survey respondents. Businesses read reviews and can make decisions based on what they discover. If customers express their dissatisfaction with a product, they can influence future tech purchases. This reinforces the importance for vendors of providing good customer support, monitoring reviews, and paying close attention to client feedback. 

Interactions must continue during the software onboarding process

Finding and selecting a software solution and provider can be a meticulous process. However, even after a product is chosen, the next step can also be problematic if businesses do not receive appropriate guidance from vendors. 

Not only is customer support an essential factor for UK businesses, these firms also expect personalisation and flexibility in these support and training services. When asked to select the top three most valuable onboarding factors when adopting a new solution, the most frequently cited by respondents were:

• Customer support (49%),
• Personalised training (48%)
• Flexible workflows that are adapted to user types (43%)

Software buyers value personalised training when onboarding

48% of survey respondents have tried online training to help make a purchase decision. Buyers want resources to help them learn how to proficiently use the products they buy. However, this does not just mean that any default training will do. Personalised training is a highly valued asset for nearly half (48%) of our respondents.

Training courses and materials were listed as the most important content from a provider that needs to be available in a buyer’s primary language by 51% of respondents. In addition to ensuring training can be provided in their preferred language, here are some other factors businesses should consider if they want to implement personalised training.

What internal barriers do companies face when investing in software?

Sometimes, businesses may want to invest in technology but can be set back by internal barriers that make it difficult to carry out these purchases. We asked our survey respondents what obstacles they faced in their organisation. 

Downtime and learning curves are a concern for UK businesses

The most frequently cited barrier respondents faced when investing in software related to concerns about downtime or the learning curve while implementing new technology. 43% of businesses stated that this was their concern.

One common step businesses take to mitigate downtime is migrating their databases and applications to the cloud. 56% of the software our respondents purchased in 2022 was cloud-based. Companies can choose dedicated, public, or shared servers to store data and ensure applications run without the need for shift-based work and with automated maintenance. 

When it comes to delays from learning curves, businesses should find ways to reduce delays when training employees to use new software or technologies. Having staff scattered across different locations can complicate training processes. Learning management systems can help businesses overcome logistical obstacles and ensure continuous learning while providing various modules and asynchronous courses. 

Businesses should plan out the learning experience they want from their employees and also tailor them to each department’s requirements. They can also leverage different ways of training staff, such as through gamification, to accelerate learning and develop habit-forming learning opportunities. People will have different learning styles, so businesses should listen to staff insights before implementing the software and monitor their feedback and progression during the implementation process. 

Businesses worry that their tech investments may not deliver positive ROI

The second biggest barrier for 40% of respondents was concerns over return on investment (ROI). Companies should be cautious about purchasing premium software with multiple features that aren’t necessary to meet their objectives. Additionally, businesses should apply a total cost of ownership mindset to consider all facets of owning a product or paying for a service before purchasing software. This could include maintenance, training, support, upgrades, added features, and any additional costs to the initial purchase price.

Despite the barriers, will UK firms invest more in technology in 2023?

In 2023, business decision-makers will face both old and new challenges. Despite the risk of increasing energy prices, recession, and labour market shortages, 62% of our respondents were planning on spending more on technology in 2023 than in 2022.

There will be challenges, but UK firms know that there are better solutions than reducing technology spending. Instead, businesses will look to different platforms and new technologies according to their short-term or long-term needs. 

To do so, these businesses will look to find the right technology for their business, train employees accordingly, strengthen their customer support, and provide advanced cybersecurity to protect their businesses.

Tips to consider when purchasing software in 2023

Having evaluated buyer behaviour and how businesses are responding to emerging technologies, here are four tips companies can use when deciding what software and technology to purchase:

• Have a clear idea of the essential features your solution needs: There will be numerous all-in-one packages that deliver multiple features that your business does not need, usually at a higher price. Having defined plans of how features will help meet objectives and key performance indicators (KPIs) can help deliver positive ROIs.
• Research and compare the features of the software on your shortlist: Comparison sites and software marketplaces like Capterra can help businesses evaluate and compare software options and features. Users can deploy filters and find detailed information on the features of each tool. This can help businesses pinpoint the technology that best suits their needs.
• Read customer reviews: 44% of surveyed respondents used customer reviews to help make a purchase decision. These insights can be transparent and straight from peers and businesses in similar situations to your organisation.
• Be flexible when researching your options: Businesses should have a plan of what they expect to achieve, but they should be flexible to change. For example, our survey showed that 48% of purchased tools were off-the-shelf software that can work on a standalone basis or integrate with an existing tech stack, usually at a lower price than bespoke tools. However, 52% of purchases were customised to each company’s needs. Businesses should research the pros and cons of each specific case and decide which is the best for them.