2024 Software Spending to Increase With Focus on AI Functionality and Extra Security, Gartner Di…>
Business Wire – Gartner Digital Markets
Software buyers are increasingly focused on cost efficiency, artificial intelligence (AI) functionality, and enhanced security in their decision-making process.
A new report by Gartner Digital Markets reveals that 61% of buyers are seeking upgrades for more functionality in their recently purchased software.
Central to navigating these decisions, 98% of buyers rely on user reviews in their decision-making process and place higher trust in more recent reviews.
To help SaaS companies attract and retain customers, Gartner Digital Markets has identified four top priorities for software buyers in 2024:
1\) Cost efficiency: Software buyers are sensitive to price, with over half (53%) disqualifying a vendor because prices weren’t in line with their expectations.
2\) AI functionality: Nearly all (92%) businesses are considering investing in AI-powered software in 2024, and by 2027, spending on AI software will grow to $297\)9 billion.
3\) Security concerns: Nearly half (47%) of software buyers say their concerns about security and cyberattacks triggered a purchase in the last 12 months, with security certification, reputation, or data privacy practices being the top reasons for selection.
4\) User reviews: Recent reviews are more likely to reflect a software product’s latest features and support capabilities, allowing for a more accurate view to inform decision-making.
As such, 92% of buyers indicate they are more likely to trust software reviews written within the past year, with a preference for reviews that are verified by a third party.
The report highlights that SaaS companies can align their offerings with current market demands, like advanced AI and security features, while also understanding the importance of customer reviews in building trust and credibility with prospective buyers.
By prioritizing these factors, providers can exceed sales goals and stay competitive in the rapidly evolving software market.
Link: https://www.businesswire.com/news/home/20240215490449/en/2024-Software-Spending-to-Increase-With-Focus-on-AI-Functionality-and-Extra-Security-Gartner-Digital-Markets-Reports