- Thirteen enterprise software categories are driving a 50% or greater satisfaction rate in companies replacing incumbent vendors with new ones.
- Team Collaboration and Web Conferencing software providers tend to the best at understanding the nuances of their customers’ requirements for training, usability, intuitiveness, and implementation.
- SoftwareReviews’ data of 193 software categories shows that the 13 categories delivering the greatest satisfaction are the easiest to implement as rated by organizations using them.
- 80% of organizations see a positive change in satisfaction after switching vendors, capitalizing on innovative new features, including improved usability.
These and many other fascinating insights are from recent research completed by SoftwareReviews, a division of Info-Tech Research Group titled Switching Existing Software Vendors Overwhelmingly Drives Increased Satisfaction. A free copy of the report is available for download here. Info-Tech’s business model is based on providing research to enterprise buyers on subscription, alleviating the need to be dependent on vendor revenue, which helps them stay impartial in their many customer satisfaction studies. Please see page 18 of the study for additional details on the methodology based on Info-Tech’s Application Portfolio Assessment diagnostic.
“Organizations today must compare the perceived cost of switching software to the actual benefits,” said Joel McLean, Founder & Chairperson, Info-Tech Research Group. “Our latest research shows that switching software not only increases satisfaction but does so at an overwhelming rate. And organizations that switch software, typically achieve massive returns on overall satisfaction, especially where they rate the implementation as painless. With an increased transition to SaaS offerings, this is an important finding though organizations must evaluate longer term satisfaction indicators beyond implementation.”
Key insights from the study include the following:
- 80% of organizations are more satisfied after switching software vendors, with over half being 60% or more satisfied after the change. Despite the inertia that holds organizations back from switching vendors, Info-Tech found that satisfaction with new software is soaring today. The following is a graphic from the study that shows how dominant the positive change in satisfaction levels is for those organizations that switch vendors.
- Despite not being satisfied with existing software they’re using, the perception of high switching costs holds organizations back from replacing software they aren’t happy with. Small businesses are the most likely to renew with a software vendor even if they aren’t completely satisfied with the value they’re getting. High perceived switching costs and time requirements to qualify a new vendor often discourage small businesses from replacing a vendor. Large enterprises are nearly the same. It’s unfortunate as the Likeliness to Recommend (NPS) score is so low across software categories as the graphic below shows:
- Organizations that change vendors in 13 application categories see a 50% increase or more in satisfaction levels. The greater emphasis globally on remote working combined with the rapid innovations in Team Collaboration and Web Conferencing makes these two application areas overall leaders on Net Promoter Score (NPS). Companies switching to new vendors in these two categories are seeing satisfaction levels soar over 50%. Data Center Automation and Next-Generation Firewalls lead all categories on the percentage change in satisfaction after switching vendors. The following graphic compares Net Promoter Score and Percent Change in Satisfaction from Switching Vendors. To see and expanded view of the graphic below, please click here.
- Enterprise software companies who take the customer requirements of being easier to implement, learn, and use seriously have the best chance of replacing long-standing competitors. All enterprise software companies know they could improve the implementation process for their systems. The same holds for providing intuitive, easily-learned features that deliver more business value. In any analyst or press briefing, these features are always at the top of the list of planned features or roadmap priorities. SoftwareReview’s research shows that Team Collaboration and Web Conferencing software providers tend to the best at understanding the nuances of their customers’ requirements for training, usability, intuitiveness, and a simple implementation process.
“While ease of implementation is directly correlated with higher satisfaction from switching software, it is important to look beyond the implementation phase toward other leading indicators of long-term vendor satisfaction, such as the vendor’s connection to the client’s business value, the quality of service delivery, the ability of the vendor to support innovation, and its overall reliability,” added McLean. “Evaluating all of these aspects in a comprehensive manner will help organizations make better software selection decisions.”
- Organizations looking to replace legacy systems need to use their bargaining power to get deep discounts, multi-year price breaks, and more. Intuitively speaking, it stands to reason the better the deal a given company gets on acquiring a new system, the more satisfied they will be. SoftwareReviews’ analysis finds it’s the combination of new applications’ ease of implementation combined with improved usability and intuitive design, delivering increased business value along with deep discounts that drive the greatest satisfaction. It’s interesting to note that enterprises who threatened to switch vendors only achieved an 8.84% discount, while those switching vendors achieved over three times that with volume discounts. Changing software vendors pay.