Why SMBs Abandon DIY Software Mid-Purchase

According to a new survey conducted by LSA and Mono Solutions, more than half of SMBs have at some point abandoned an online software purchase in the middle of the process. And their reasons suggest that DIY software vendors overall haven’t yet perfected the customer experience.

According to the online survey of roughly 500 small business operators conducted in September, only 41% of respondents said they had never abandoned an online software purchase once started. The most commonly abandoned services included website domains, websites, and social media advertising.

Respondents were then asked why they abandoned the DIY purchase. The most commonly cited reason was “I changed my mind about needing the product,” following closely by “I felt misled about the cost”, “The process was complicated or confusing” and “The process was taking too long.”

The leading response about customers changing their minds about their need for the software is open to interpretation. Some SMBs are likely fickle by nature. But the response may also suggest that something was missing in the customer experience that gave pause and led them to abandon the purchase. And this response choice may have come closest to articulating this anxiety. The remaining choices are less open to interpretations. They reflect a bad customer experience and also provide insight into what SMBs need in order to feel comfortable purchasing software in a DIY environment.

These and other findings will be shared in a new LSA white paper commissioned by Mono Solutions, “Meet the New Small Business SaaS Customer,” that summarizes the survey findings. The paper will publish next week and key findings will be shared at the AsiaComm conference (presented by ALSMA) next week in Hua Hin, Thailand, and at the LSA’s Tech Adoption Summit, November 6-7 in San Francisco.

The survey and white paper seek to answer some key questions about in which circumstances SMBs prefer to DIY their software purchases vs. when they would rather use a more service-intensive model. The survey explored this for key elements of the digital marketing stack: domains, websites, social media advertising, SEO, listings, reputation management, email marketing, appointment booking applications, and CRM.

Stay tuned for most posts this week sharing other findings from the survey and white paper.

Source: LSA & Mono Solutions survey (September 2018)

Share Article...

Follow Us...

Stay ahead of the curve and get the latest on Local straight to your inbox.

By submitting this form, you agree to receive communications from Localogy. You can unsubscribe at any time.

Leave a Reply

Related Resources

Universal Ads Expands the SMB Advertising Pie

Universal Ads Expands the SMB Advertising Pie

One of the biggest opportunities in SMB marketing today is the ongoing democratization of video advertising. Generative video models bring production costs down to almost zero, while expanding CTV inventory and programmatic placement make supply abundant and more SMB friendly (read: affordable).

Are AI Trust Issues Going Away? WordPress.com Says No

Are AI’s Trust Issues Going Away? WordPress.com Says No

AI’s biggest barrier today isn’t necessarily technical. The technology is still plagued by consumer trust issues. This stems from several objections, including the AI’s reliability and its association with job losses, not to mention all the dystopian fears. A new report from WordPress.com quantifies the issue. 

Conversational Intent: The Secret Weapon for ChatGPT Ads?

Conversational Intent: The Secret Weapon for ChatGPT Ads?

Ads in ChatGPT are starting to look better. After a splashy entrance, immediate backlash, and handwringing from advertisers over limited options, OpenAI’s move into advertising has turned around. Signs are starting to show some favorable performance as OpenAI figures it out… as we predicted.