A new report with Lenati is intended to help C-level decision makers at businesses, vendors, and retailers understand the tech-buyer journey.
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Adobe worked with consulting firm Lenati to conduct a survey of corporate buyers and consumer technology and found a generation shift in purchasing decisions.
According to the report, buyers of B2B technology under the age of 35 are a growing part of the modern tech purchasing community, which interviewed business professionals and consumers in two age cohorts: under the age of 35 and 35.
SEE: Digital transformation: a guide for IT professionals (free PDF)
“It is no longer safe to assume that the decision maker is the older employee,” said Jill Steinhour, director of high-tech and B2B strategy at Adobe. In fact, she said, 73% of the millennials are now part of B2B purchasing commissions.
In addition, research from Adobe shows that 40% of the cohort under 35 take the final decisions on device purchases, IT infrastructure and application software, Steinhour said.
Steinhour said the report’s aim is to “provide qualitative insights into what technical buyers actually want, in addition to quantitative data that can be used for marketing purposes, so that sellers and retailers can benefit from not only understanding what customers want from their product , but also how they want to use it outside of sales. ”
She said the study aims to provide timely insights for decision-makers at C level at companies, technology suppliers, and tech retailers.
The survey consisted of two online surveys of business professionals and consumers in August 2019. A total of 201 enterprise and 300 consumer surveys were completed with a randomly selected selection of American technology buyers.
“Generational Insights on B2B and B2C Technology Purchasing”, written by Julie Wotruba, a director at Lenati, and Rebecca Lucash, a consultant at Lenati, with analysis and support from Adobe, was shared with TechRepublic this week.
The goal, the authors said, was to understand specific technology needs and delivery, important considerations when considering technology initiatives and offers, and differences by age cohort, as well as the top companies and brands that buyers choose.
Steinhour said the report “provides a unique lens for enterprise and consumer purchasing drivers; in addition to the generation difference, there is a common basis for making an investment: the need to acquire advanced technology and trust its reliability”.
The insights can be useful for suppliers and managers at C level who budget for 2020, especially with potentially tighter budgets.
David Payne, an economist for Kiplinger, predicts a growth in capital spending of 1% in 2020.
Consumers who have held up the economy are likely to cool their purchases after a robust fourth quarter, according to the Conference Board, which predicts annual consumer spending growth of 2.6%.
“It is certainly at the right time, given that budgets and purchasing decisions are now being made for 2020,” Steinhour said.
Image: Adobe
Best takeaways from the Adobe / Lenati report
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Buyers of enterprise technology are getting younger and increasingly emphasizing the importance of tech-forward.
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Younger buyers have a different attitude towards technology – they are early adopters because they are more confident.
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Technology must work well for everyone, everywhere. These features are ‘table stakes’ for both older and younger buyers, but younger buyers have additional considerations. (Table bets provide a basic understanding of what the buyer wants and needs, Steinhour said.)
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As millennials take over the leadership of companies, innovation itself becomes a table. Deliver innovation to capture the buyers of tomorrow.
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Younger consumers want technology that is predictive, enables social sharing and is designed intuitively. Keep these dimensions in mind when evaluating product folders.
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While technological products and services commoditize, differentiate with exceptional service.
Buyers of consumer technology offer perspectives
“Subscription services are one of the fastest growing procurement trends and it has a decisive impact on the way we consume new products,” Steinhour said.
The trends are mainly driven by millennials and Generation Z, who consume more often on their mobile devices than older consumers, she said.
The research showed that 83% pay for subscription content or software, compared to 65% of older consumers. “As this digitally indigenous generation continues to gain more and more purchasing power, expect the subscription economy to continue to grow.”
The growing interest in DaaS (device-as-a-service) is an early signal that a tech-forward agenda is becoming a priority for the younger business buyer, the report shows.
Of the respondents, 45% under the age of 35 say they are considering adding DaaS to their company’s roster the following year because it allows them to play a pioneering role, says Steinhour.
“Another factor in accepting DaaS is related to how this generation views their personal and professional atmosphere more holistically,” she added.
Access to the latest technology is required for their purchases of personal technology, and services such as Netflix have, according to the report, promoted a propensity for subscription models. “Millennials expect choice and flexibility when it comes to procurement technology, so B2B suppliers must adapt to this changing demand,” Steinhour said.
The report shows that smartphones have become an inseparable part of daily routines. Personal and professional life has come together on devices, with 83% of respondents under 35 (and 70% over 35) reporting using their personal devices for work.
Furthermore, the work they do goes beyond e-mail: 63% of younger users (and 50% older) say they perform complex work activities, such as generating content and editing on their phones.
“The result is that mobility will increasingly stimulate consumer buying decisions,” Steinhour said.
The report concludes with four important insights:
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Technology is essential, but it must be reliable, safe, high-quality, reasonably priced, mobile and user-friendly.
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Innovation is the key to the future of business and a necessity for young buyers.
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Younger consumers have extra needs with social sharing, predictive options and design as extra levers.
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End-to-end experience is a point of differentiation: “At present, technological features related to customer experiences with a company are some of the worst performing aspects of the market,” the report said.
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