Recent research from G2 and insights from SaaStr paint a vivid picture of an increasingly competitive landscape for software firms in the New Year.
The good news is that half of software buyers are gearing up to spend more in 2025, a clear shift from the consolidation and pervasive “do more with less” attitude of 2024.
However, there are three key constraints in buying behavior that GTM teams need to aware of in order to garner a competitive share of the spending increase, including research which highlights that:
- Vendor shortlists are shrinking,
- Sales cycles are elongating
- Executive scrutiny is intensifying.
As a result of these continued buyer behavioral changes, it is more important than ever to evolve customer engagements from product-led to value centric. Let’s dig into the findings and how to best capture more than your share of 2025 opportunities.
The Changing Buyer Landscape
According to G2’s buying behaviour research:
- Shorter Shortlists – In just one year, vendor shortlists have condensed from 4–7 products to just 1–3. This means buyers are no longer entertaining broad comparisons—they’re laser-focused on a few contenders. To make the cut, your offering must immediately resonate and demonstrate relevance.
- Longer Sales Cycles – Buying decisions for products with a $20,000 average selling price (ASP) now take 41% longer. Buyers are engaging in more due diligence, reflecting heightened scrutiny, risk aversion, and the need to justify ROI.
- C-Suite Involvement – Executive participation in purchasing decisions has surged by 14% year-over-year, with CFOs increasingly acting as gatekeepers. Vendors must navigate this elevated decision-making tier with precision, delivering financial justification and clear, compelling value narratives.
The Value-Centric Imperative
To succeed in this new reality, companies must pivot from a product-led approach to a value-first mindset—an approach that permeates every buyer and customer interaction. Here’s why:
- Buyers Expect ROI—Fast. A staggering 78% of buyers expect to realize ROI within six months, yet only 44% see those results in that timeframe. For AI solutions, expectations are even steeper, with 67% demanding faster payback than traditional tools. Delivering on these expectations isn’t optional—it’s the differentiator.
- Standing Out Requires Intent and Insight. Buyers have less bandwidth for exploration and are increasingly relying on economic justification to guide decisions. Your ability to better communicate and quantify differentiating value directly impacts your position on the diminishing shortlist.
Winning with Value: A Roadmap to 2025 Success
As we examine the research, it is obvious that GTM needs to quickly adjust to capture buyer interest and purchase decision success:
- Leverage Buyer Intent Signals – Understanding buyer behaviors is key to getting on the shortlist—such as content engagement or website visits—allows for precision targeting. Use these signals to personalize outreach and align messaging with the buyer’s specific challenges and goals.
- Articulate a Unique Value Proposition – Cut through the noise by showcasing not what your solution does, but how your solution addresses the challenges buyers face AND the outcomes that matter most to key decision stakeholders. Focus outcome metrics that drive their business success, such as cost savings, risk mitigation, or revenue growth.
- Engage Economic Buyers Early – Bring CFOs and other economic stakeholders into the conversation early. Frame your solution as a strategic enabler of business goals, backed by financial justification and potential ROI.
Time to Value: The Make-or-Break Metric
Speed of value delivery is now the ultimate differentiator. Falling short on this front risks not just losing deals, but eroding trust and customer retention.
Actionable Strategies include:
- Integrate Customers into the Product Journey: During the buying cycle, involve customers in product workshops, pilot programs, or sandbox experiences to reduce ramp-up time post-sale.
- Leverage Digital Adoption Platforms (DAPs): These tools streamline onboarding and help customers achieve proficiency faster, shortening the time to first value.
- Regular Realized Value Communications: Build trust and momentum with regular updates on progress toward key outcomes.
- Celebrate Early Wins: Recognize and amplify customer successes early in the relationship, creating confidence and fostering advocacy.
Scaling a Value-Centric Approach
Transitioning to a value-first mindset isn’t just about sales—it’s about embedding value into your company culture and operations. Achieving scale requires:
- Unified Value Storytelling Across Teams: Ensure marketing, sales, and customer success are aligned on the value narrative with a value storytelling playbook – addressing each persona and key industry.
- Investment in Enablement: Train teams on how to engage buyers with value-centric outreach, discovery, Point-of-View (PoV) conversations, tools and business cases.
- Value Metrics at Every Stage: Track and communicate value delivery throughout the customer journey, especially post-sale to prove realized value and quick time to ROI.
The Bottom-Line
With more opportunities in 2025, while faced with vendor shortlists shrinking and competition intensifying, the window to adapt is closing. Companies that evolved from product-led, to embrace value-centric marketing, sales, and customer success will thrive, while those clinging to a product-led approach will be left behind.
The urgency is clear: Buyers are demanding faster ROI, more personalized engagement, and greater strategic alignment. Meeting these demands requires not just a shift in strategy but a transformation in execution.
Your next win isn’t just about having the best product—it’s about proving you’re the best partner. Start delivering value at every stage, and you’ll not only make the shortlist—you’ll own it.
Checkout how quickly you can address these challenges, to evolve and accelerate your move from product-led to value-centric – – https://geniusdrive.com/wp-content/uploads/2024/11/Kickstart_Program_Flyer_11_27_24.pdf
Sources:
- SaaStr Article – https://www.saastr.com/saas-buyer-data-with-ai-from-g2/
- G2 Buyer Behavior Report – https://research.g2.com/2024-buyer-behavior-report
