SaaS Buyer Experience Study - 2021 Full Report

SaaS Buyer Experience Study 2021

How COVID-19 changed SaaS purchasing preferences and behaviors

About this report

Introduction

The COVID-19 pandemic was a game-changer for many industries. Moving from centralized operations to decentralized workforces, in-person interactions to digital meetings, organizations worldwide abruptly pivoted to maintain business continuity and accelerate digital transformation.

The SaaS market, too, underwent significant shifts, creating an ebb and flow in the sales cycle and altering buyer behavioral patterns. Would these new emerging trends continue post-pandemic, or will they resemble more of the pre-pandemic activities? This was an important question to answer, given the rapid growth of the market, with SaaS spending forecasted to reach $138 billion by 2022.

To gain deeper insight, Qwilr conducted independent research to understand how SaaS buyers make decisions today and how the purchasing process has changed. From the survey responses, it’s clear today’s SaaS buyer does not want to be sold; rather, buyers desire more control in the purchasing process.

Amongst our findings:

In a competitive landscape with more than 8,000 MarTech solutions available on the market, adapting sales processes to modern buyer preferences is even more critical for SaaS sellers.

The SaaS Buyer Experience Study highlights critical shifts in buyer preferences and key takeaways for SaaS sales success in a post-pandemic world.

Methodology
SaaS buyer frustrations
Desired SaaS buyer experience
SaaS buyer empowerment
Influencers in the purchasing decision
The importance of a buyer-centric sales experience
Key takeaways for SaaS sellers
Next step for SaaS sellers
About Qwilr

Methodology

This study was conducted by a third-party agency on behalf of Qwilr from March 29 to April 9, 2021. The study included 114 respondents with the following demographics:

By industry

By department

By role in buying process

By gender

By age

By region

All survey respondents were in the US.

SaaS buyer frustrations

The human impact of the pandemic was significant. Over the past 12-18 months, people have been reexamining and remaking every aspect of their lives, including their jobs.

The sale process could be less demanding. There’s too much paperwork!
2021 SaaS Buyer Experience Survey Respondent

When asked what aspects of the SaaS buying experience are frustrating, 80% of the respondents commented on the cumbersome process— too complicated/too many steps, too lengthy, or too many phone calls and meetings with the sales rep. One survey respondent specifically called out the excessive paperwork.

It’s clear there’s room for improvement to streamline communication, simplify the process, and accelerate the sales cycle.

The breakdown of responses

When buying a SaaS product, what aspects of the buying experience (if any) frustrate you?
(Select all that apply)

Desired SaaS buyer experience

Buyers want a better process. SaaS sellers who make adjustments in the buying process will not only accelerate the buying cycle but gain a competitive advantage.

When asked what would make the process of buying SaaS software easier and more convenient, 59% of the respondents again cited the desire for a simplified and faster process. But we also saw new partialities for more self-service options, without involving a sales rep (25%), as well as help calculating the ROI of the purchase (20%).

What do you think would make the process of buying a SaaS product easier and more convenient?
(Select all that apply)

SaaS buyer empowerment

Whether a result of the pandemic or the internet resources readily available, it’s clear SaaS software buyers have changed their decision-making process. In fact, 88% of our survey respondents indicated they want more empowerment and self-serve options.

In the earlier stages of the sales cycle, it comes as no surprise buyers want to do their own research, discovery, and evaluation.

But as they progress and advance in the cycle, the desire for independence continues.

And when negotiating and finalizing a deal, 66% said it’s important that software pricing includes a “build your own” model with interactive pricing and selection of features. Over half (52%) of the respondents also want to customize the proposal for their specific needs.

Additionally, buyers seek other conveniences, including:

While SaaS buyers want more empowerment in the process, they also acknowledged the need to have a salesperson involved. 87% of survey respondents indicated a desire to speak to a salesperson for purchases over $500.

What aspects of the buying process do you feel would be better if you could do them yourself without a sales rep’s assistance?
(Select all that apply)

On a scale of 1-5, how important is it to you that software pricing includes a “build your own” model where you can choose the components needed for your business?

SaaS buyer influencers

Amidst a highly competitive SaaS landscape, we asked SaaS buyers what aspects were most influential in the purchasing process. From the top responses, it’s clear software buyers are looking for the most value for a specific solution but also can’t afford to make a mistake.

To reduce their purchasing risks:

Price, too, was a popular response, with nearly half of survey participants noting price was a factor in their decision. However, if the solution doesn’t meet specific use case needs, then price becomes irrelevant.

Press coverage ranked especially low in the responses, with less than 10% influenced by brands in the news. This suggests the buying process has shifted away from public popularity to a more refined, personalized approach. And, when we probed deeper into sales influencers, the top response (45%) was the responsiveness of the sales team, followed by the variety and quality of the sales materials (36%) as well as customization of collateral (27%).

The importance of a buyer-centric sales experience

Personalization is also a key selling differentiator and competitive advantage. As evidence, 64% of survey respondents stated it’s important that sales materials are specific to them and their needs. And conversely, if generic sales materials are used, it has a negative impact on the buying decision.

When asked what aspects of a sales proposal would negatively influence their decision:

Given the vast tech options available today, it’s a buyer’s market; evolving the SaaS sales experience could be the difference between winning the deal or losing it to the competition.

The adage people buy from those they know, like, and trust is still true. How you present yourself and your product either builds that trust — or gives your competitors a foot in the door.
Mark Tanner, Co-Founder, Qwilr

Which aspects of the software buying process influence whether or not you choose to purchase?
(Select the top three influencing factors)

Outside of evaluating the product itself, what other aspects of the sales process have a positive influence on whether or not you choose to buy a SaaS product?
(Select all that apply)

If a sales rep were to send you a proposal, which of these elements would influence your decision NOT to purchase?
(Select all that apply)

On a scale of 1-5, when you’re in discussions with a sales team, how important is it that the materials they send are personalized to your specific needs?

Key takeaways for SaaS sellers

Over the course of the last 18 months, the SaaS purchasing process has changed. Software buyers are working under tighter constraints, have many options to choose from, and are looking for reassurance in their direction. The findings of this study provide a roadmap for SaaS sellers to thrive in our new selling environment.

The key takeaways:

Buyers are engaging less frequently.

The pandemic forced sales reps to interact with prospects differently. At the same time, SaaS buyers also made their preferences clear— they are doing more research on their own and want more empowerment when engaging with sales reps. As a result, software sellers need compelling, interactive materials to stand out and prompt a prospect to take action.

Buyers want more reassurance before making a purchase.

Because of the lingering economic uncertainty, buyers are under more pressure to make sound decisions with less risk. Product trials, customer reviews, testimonials, case studies, and visually appealing materials build brand credibility and give buyers confidence. Software sellers with a lackluster or unprofessional image are at a disadvantage and product proposals will likely be dismissed.

Buyers expect personalized materials.

The decision-making process has evolved, and buyers expect more sophisticated sales materials to match. Generic corporate brochures are out, and merely inserting a prospect name and company logo into communications is table stakes. Today’s software buying is looking for materials that communicate a deep understanding of their specific needs and use case, and can easily be shared with other influencers in the decision-making process.

Buyers want pricing flexibility.

Going beyond just negotiating the price, buyers want flexibility in the product proposal. Transparency in pricing, the ability to select features and the resulting financial impact, give buyers a sense of control, and build confidence the solution is appropriately scaled for their needs.

Buyer conveniences can accelerate the deal.

Throughout our study, SaaS buyers repeatedly commented on the desire to simplify and accelerate the sales process. Building in buyer conveniences, such as approval during the early stages of the cycle, e-signatures, and integrated payment options reduce late-stage friction, streamline the process, and accelerate the time to close.

In a competitive market, small adjustments by SaaS sellers can pay big dividends. The sellers who will be the most successful in our new economy will be those reviewing current sales processes and modernizing the experience for buyers, from initial contact to closing the deal.

Next steps for SaaS sellers

Knowledge may
inspire, but action drives change.

Take the next step. Improve your buyer experience with Qwilr. Discover how Qwilr is more than just sales proposal software, it's a modern way to sell.

Try Qwilr for free.

Qwilr is used by these industry-leading brands

About Qwilr

Qwilr is delivering the future of communications for business. We make it easy to create differentiated, visually compelling sales and marketing collateral, at speed. You can deliver a better, faster buyer experience by combining proposal content, price quotes, and sales transactions into a single, mobile-friendly webpage. It's the ultimate productivity boost for sales and marketing teams, with automation, analytics, code-free design, and collaboration features, all in one platform. Qwilr was founded and is headquartered in Sydney, Australia. For more information or to start your free trial, visit qwilr.com.