More than half of U.K. software buyers regret their technology purchases, with hidden costs emerging 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% blaming unforeseen expenses that drove costs beyond expectations.
Software may cost more than anticipated due to hidden fees, licensing restrictions, required upgrades, implementation costs, or additional expenses for training and support.
Beyond financial concerns, 30% of regretful buyers said that the technology was overly complex, and the same percentage cited difficulty with training or onboarding users. Two other common reasons for regret were incompatibility with existing systems (29%) and difficulty or slow setup (28%).
Consequences of unsatisfactory software purchases
When asked about the impact of these regrettable purchases, 56% of regretful buyers reported increased costs, 42% cited reduced productivity, and 35% said it introduced security vulnerabilities. Each of these factors directly or indirectly affects a company’s bottom line.
As businesses continue to invest in technology, making well-informed decisions is more critical than ever. Gartner predicts global IT spending will grow by 9.3% in 2025, largely due to companies looking to leverage generative AI. With so much capital at stake, businesses must learn from past mistakes to ensure long-term value from their software investments.
SEE: Why you should build, not buy, software: 5 reasons
Buyer mistakes that led to regrettable software purchases
Capterra also asked the U.K. software buyers about how they made their decisions and found key patterns amongst those who regretted their purchases.
Only 59% of regretful buyers made a shortlist of one to four software vendors, compared to 72% of non-regretful buyers. A shorter list “not only improves the chances of a successful buying journey but could also save time later when it comes time to test and refine things,” David Jani, U.K. Analyst for Capterra, said in the report.
Furthermore, 22% of regretful buyers stuck firmly to their initial shortlist, compared to just 17% of non-regretful buyers, suggesting flexibility is important. Sixty percent of non-regretful buyers adjusted their choices from their initial to their final list.
Successful buyers also conducted more extensive research before making a decision. Among them, 56% reviewed industry experts, 48% examined customer testimonials, and 47% used product review and comparison websites. According to Capterra, these percentages were all higher among satisfied buyers than those who regretted their purchase.
Finally, regretful buyers were less likely to try out their final choice of product before making the purchase. While 72% of successful buyers scheduled a full product trial, only 51% of regretful buyers did the same.
Lessons from the regretful buyers
Capterra researchers asked regretful buyers what they would do differently next time they purchased software. The top response, cited by 33%, said they would clarify their goals and desired outcomes better before making a decision.
A lack of clarity around the problem that new software would solve was also highlighted as a key reason that over 80% of AI projects fail, according to 2024 research from RAND. Industry stakeholders often misunderstand or miscommunicate this problem, or choose one that is too complicated to solve with software. The organisation may also be more focused on employing the “latest and greatest technology” than actually solving the problem at hand, the RAND researchers said.
Other key lessons from Capterra include improving stakeholder communication around decisions (31%), developing a supplier’s risk assessment process (30%), and performing a security review (29%) before making the decision.
“There’s a lot to learn from the 43% of UK companies that had successful software purchases,” said Jani in an emailed comment. “Just like companies tend to analyse their competitors’ marketing or sales strategies, they should also pay closer attention to how other businesses make decisions during the software buying process.”
“Not only is this essential in helping disappointed buyers make the right tech choices, but also helps businesses remain efficient and at a competitive advantage for years to come.”
With software investments on the rise, hidden costs and poor planning continue to lead to costly regrets. Businesses that prioritize thorough evaluation and testing can avoid these pitfalls and make smarter purchasing decisions.
