In 2024, software buyers are placing a greater emphasis on cost-efficiency, AI functionality, and enhanced security, according to a recent report by Gartner. The study indicates that 61% of buyers are looking to upgrade their software for more advanced features, reflecting a constant drive for improved performance and return on investment. User reviews play a crucial role in the decision-making process, with 98% of buyers relying on them, especially recent reviews, to inform their choices.
To help SaaS companies better attract and retain customers, Gartner has outlined four key priorities for software buyers in 2024. Cost remains a significant factor, with buyers evaluating pricing in relation to features included. Thirty-one percent of buyers have switched software providers due to high costs, making it the number one consideration when searching for new software. Additionally, 53% have ruled out vendors whose prices did not meet their expectations.
AI features are in high demand among software buyers, with 92% of businesses considering investing in AI-powered software this year. Gartner forecasts that by 2027, spending on AI software will reach $297.9 billion, with a compound annual growth rate of 19.1%. The growing interest in AI reflects a desire for increased efficiency and productivity.
Security concerns are also driving software purchases, with 47% of buyers citing worries about security and cyber threats as a reason for their recent purchases. Factors such as security certification, reputation, and data privacy practices are key considerations for 46% of buyers when selecting a vendor. Moreover, IT security software is the top purchasing category for buyers, underscoring the importance of cybersecurity in software decisions.
Buyers heavily rely on recent and verified reviews to guide their purchasing decisions. Recent reviews are considered more reliable in reflecting a software product’s current features and support capabilities, providing a more accurate assessment for buyers. Ninety-two percent of buyers prefer reviews written within the past year and value those verified by a third party for added credibility.
Caroline Hogan, senior director of vendor marketing at Gartner Digital Markets, highlights the importance for software providers to adapt to market demands, such as advanced AI and security features, and to build trust and credibility through customer reviews. With software investments expected to rise this year, providers must understand buyer trends and leverage them for growth.
Overall, the software market in 2024 is driven by a focus on cost-efficiency, AI functionality, and security, with buyers seeking upgrades for enhanced performance and relying on reviews to make informed decisions. SaaS companies with offerings aligned with market demands stand to capitalize on the growing opportunities in the industry.