More than half of British software buyers regret their technology purchases, with hidden costs that arise as the top complaint, according to new research from Capterra. Over the past 18 months, 57% of buyers have regretted at least one software investment, with 34% accusing unforeseen expenses that drove costs beyond expectations.
Software can cost more than expected due to hidden fees, licensing restrictions, required upgrades, implementation costs or further expenses for education and support.
In addition to financial concerns, 30% of regrettable buyers said the technology was overly complex and the same percentage cited difficulties with training or onboarding users. Two other common reasons for regret were incompatibility with existing systems (29%) and difficulties or slow setup (28%).
Consequences of unsatisfactory software purchase
When asked about the impact of these regrettable purchases, 56% of regrettable buyers reported increased costs, 42% quoted reduced productivity, and 35% said it introduced security vulnerability. Each of these factors directly or indirectly affects the bottom line of a company.
As companies continue to invest in technology, it is more critical than ever to make well -informed decisions. Gartner predicts that global IT expenses will grow by 9.3% by 2025, largely due to companies that want to utilize generative AI. With so much capital that is at stake, companies must learn from previous errors to ensure long -term value of their software investments.
SEE: Why you should build, not buy, software: 5 reasons
Buyer error that led to regrettable software purchases
Capterra also asked British software buyers how they made their decisions and found key patterns among those who lamented their purchases.
Only 59% of regrettable buyers made a shortlist of one to four software vendors compared to 72% of non-spread buyers. A shorter list “not only improves the chances of a successful purchase trip, but can also save time later when it’s time to test and refine things,” David Jani, British analyst for Capterra, said in the report.
In addition, 22% of regrettable buyers are stuck on their original shortlist, compared to only 17% of non-expanded buyers, suggesting that flexibility is important. 60 percent of non-exchanging buyers adjusted their choices from their original to their final list.
Successful buyers also performed more extensive research before making a decision. Among them, 56% investigated industrial experts, 48% customer opinions and 47% used product review and comparison sites. According to Capterra, these percentages were all higher among satisfied buyers than those who lamented their purchases.
Finally, regrets of regrets were less likely to try their final choice of product before making the purchase. While 72% of the successful buyers planned a full product trial, only 51% of the regret of buyers did the same.
Lessons from the regrettable buyers
Capterra researchers asked regrettable buyers what they would do differently next time they bought software. The top answer cited by 33%said they would clarify their goals and wanted results better before making a decision.
Lack of clarity about the problem that new software would solve was also highlighted as an important reason why over 80% of AI projects fail, according to 2024 research from Rand. Industrial stakeholders often misunderstand or mis -communicate this problem, or choose one that is too complicated to solve with software. The organization may also be more focused on using the “latest and best technology” than actually solving the current problem, the Rand researchers said.
Other key lessons from Capterra include improving stakeholders’ communication around decisions (31%), developing a supplier’s risk assessment process (30%) and performing a security review (29%) before making the decision.
“There is a lot to learn from the 43% of the British companies that had successful software purchases,” Jani said in an E email comment. “Just as companies tend to analyze their competitors’ marketing or sales strategies, they should also be more aware of how other companies make decisions during the software purchase process.”
“Not only is this important to help disappointed buyers making the right technological choices, but also helps companies stay efficient and to a competitive advantage in the coming years.”
With software investments, it continues to lead costs and poor planning with expensive regret. Companies that prioritize thorough evaluation and testing can avoid these pitfalls and make smarter purchase decisions.