Understanding B2B Software Buyer Behavior: A 2022 Perspective

"Buyers reign supreme." That statement succinctly encapsulates our findings from a 2022 survey of 1,002 B2B decision-makers about software purchasing behaviors. With a veritable explosion of choices in the software marketplace, B2B software buyers now possess unprecedented power. This is no longer a realm dominated solely by the C-suite; every employee has the agency to procure the tools they deem necessary for their business operations.

In an age where software shopping mirrors the experience of buying a home, this shift in buyer dynamics is crucial for software vendors to understand. Just as a master chef meticulously selects ingredients to create a culinary masterpiece, B2B buyers are utilizing online platforms to scout, research, and evaluate software options before they even reach out to vendors. This transformation from a traditional purchase approach to a more consumer-oriented buying journey is an essential area of focus for software sellers.

In this article, we’ll explore four key trends in B2B software buyer behavior, supported by over 50 statistics derived from the 2022 G2 Software Buyer Behavior Report. You’ll learn about how these purchasing decisions are formed and the vital factors that influence them.

Top Takeaways about B2B Software Buyers

• Software Spending Is Set to Grow: 55.6% of buyers anticipate an increase in their software expenditure in 2023.
• The B2B Buying Process Is Complex: 80% of companies have buying committees, involving 22 distinct roles in software purchase decisions.
• SaaS Contracts Are Shorter: Over 50% of contracts last less than six months, while only 11% exceed two years.
• Vendor Interaction Is Declining: 68% of buyers only consult the vendor’s sales team in the final stages of the purchasing process.
• Vendors Must Show Value Quickly: The top three factors considered by buyers are simple implementation, quick return on investment (ROI), and ease of use.
• Purchasing Channels Are Diversifying: Preference for direct vendor purchases fell by 9% in 2022, while interest in third-party marketplaces rose by 6%.
• Online Reviews Matter: A significant 76% of buyers view product reviews as trustworthy.
• Renewals Are Complicated: Only 45% renew without considering alternatives.
• Software Security Is Paramount: 97% involve a security stakeholder in the decision-making process.

Trend 1: Software Purchases Are Becoming Complex

B2B buyers are no longer navigating the software purchasing landscape independently. Instead, purchasing software now entails multiple stakeholders and a multifaceted decision-making process. Each step—from initial research to vendor evaluation—requires input from various parties, making consensus-building a daunting task.

More Stakeholders, More Steps, More Headaches

A significant 80% of companies now operate with buying committees, resulting in an intricate web of decision-makers. Nearly a third of buyers report having a purchasing process encompassing ten or more steps, with about 22 distinct roles involved in the journey. This can lead to conflicts, as the IT department may prioritize security while marketing can focus on functionality—adding layers of complexity to the buying process.

C-Suite Leaders Are Key Decision-Makers

We also see a shift in final decision-making authority: while the IT department traditionally played a central role, C-suite executives are stepping up as influencers. With the rise of user-friendly cloud-based and no-code solutions, the dependence on IT teams has diminished. The study reports that only 33% of buyers still view the IT department as the final decision-maker, a decline from previous years.

Faster Purchasing Cycles

Software contracts are no longer protracted engagements. A striking 80% of buyers now take less than six months to finalize decisions for purchases exceeding $20,000. Moreover, only 2 out of 10 customers opt for contracts lasting one year, reflecting a broader trend of shorter engagement periods in software transactions.

The Preference for Software Suites

Amidst the growing complexity, the preference for software suites or integrated solutions is also on the rise. About 82% of buyers would prefer to purchase all-in-one solutions rather than purchase individual applications, providing a fertile opportunity for vendors to upsell.

Trend 2: Vendors, Beware: Buyers Are Taking Control

With the shift in power dynamics, buyers are increasingly skeptical of vendor-provided information. They now gravitate toward peer recommendations and independent sources of information.

Buyer Independence Grows

In 2022, the use of vendor websites as the primary source of information dropped from 65% to 60%. Interestingly, only one in three buyers trust information from vendor websites during significant purchasing decisions, emphasizing an emergent need for credibility beyond vendor communications.

Trust in Peers and Industry Experts

An increasing number of buyers turn to trusted peers and industry experts for reliable recommendations. More than a third consult colleagues for initial information, and 27.6% consider industry experts influential in their buying decisions. This reflects a broader trend towards valuing firsthand, unbiased accounts over marketing-driven messages.

The Rise of Review Sites and Online Communities

Among the most astonishing revelations is the burgeoning reliance on review sites and online communities. A remarkable 84% of software buyers use review platforms for gathering information and referrals. Nearly half report feeling more confident in their purchasing decisions after consulting these platforms.

Trend 3: Buyers Look Beyond Features When Purchasing

Buyers are now more discerning than ever; they prioritize user experience, ease of implementation, and customer support over mere feature count.

A Shift in Priorities

A vast majority of B2B software buyers place immense importance on ease of use (88%) and quick ROI (87%). Surprisingly, traditional metrics such as features and pricing took a backseat to user experience.

Security Considerations Remain High

In an increasingly digital world, security must not be underestimated. Buyers are evaluating software through a security lens to ensure their chosen solutions protect sensitive data effectively.

Trend 4: Buyers Are Wary Even After Signing the Dotted Line

The complexity continues post-purchase. Despite completing their software acquisition process, buyers approach renewals cautiously and systematically.

Renewals Undergo Scrutiny

Interestingly, 70% of buyers have formal processes for evaluating contract renewals. More than half assess whether they received adequate support from the vendor and consider user satisfaction in their evaluation.

The Loyalty Factor

Although nearly half of buyers express willingness to renew without considering alternatives, this is counterbalanced by a growing inclination toward efficiency and better offerings, indicating that vendors must consistently meet buyer expectations to retain loyalty.

So…What Should Sellers Do?

As we navigate this new landscape, software vendors must adapt their selling strategies to meet evolving buyer preferences. Here are some actionable steps:

Personalize Your Messages

Recognizing the diverse stakeholders in the buying process is crucial. Tailor communications to address the specific concerns and perspectives of each stakeholder involved in the buying committee.

Make Information Accessible

Transparency is key. Provide consistent and shareable information across various platforms, including detailed product specifications, pricing structures, and customer testimonials.

Change the Approach of Your Sales Team

Sales teams should pivot from a traditional selling approach to a more consultative role. They need to serve buyers by guiding them and providing valuable context for decision-making, all while avoiding high-pressure tactics.

Focus on Delivering Value

Once you have acquired a customer, continue to provide excellent service. Help them realize the ROI promptly and solicit feedback to make necessary improvements. Satisfied customers can become your best advocates, expanding your product’s reach organically.

By acknowledging the significant evolution in B2B software buyer behavior, vendors can reshape their approaches to foster trust, drive sales, and ensure customer satisfaction. Ultimately, it’s about creating an environment where the buyer feels empowered and valued—essential components for thriving in today’s competitive software marketplace.