Capterra's 2025 Tech Trends Report: 4 Tips to help Canadian businesses shortlist the right products to avoid software purchase regret

Canadian businesses are gearing up for 2025 with a focus on adopting the right technology for their upcoming needs. As companies zero in on tools that can help them in their operations, many will need to overcome the threat of purchase regret by ensuring they take the right steps from the start of their purchase journey. This article explains how.

As Canadian businesses continue to invest in technology, many are realizing the challenges of selecting the right software. A considerable 56% of Canadian businesses have regretted at least one technology purchase made in the past 18 months, reflecting a broader issue with the software buying process. 

Even when a company identifies that, for example, it wants to deploy BI software to leverage data insights, or integrate multiple applications into one business suite, the journey to selecting the ideal software for their organization may have obstacles. With the rapid pace of technological advancement, and increasing pressure to innovate, it’s easy for businesses to rush into decisions that result in misalignment with their goals, unexpected costs, or poor vendor performance.

Capterra surveyed 350 Canadian professionals who are involved in the decision-making process when purchasing new business software within their company. The objective of this study is to gather insights on key buying trends in the software market, explore some of the mistakes businesses make in their software buying journey, and offer five practical tips on how to avoid common pitfalls*.

#1 Evaluate the total cost of ownership and customer support before making purchases 

To err is human, but prudence also lies in identifying the reasons why a choice may not have met expectations. An eye-opening finding from our survey is the prevalence of regret tied to both product-related and vendor-related factors. Canadian businesses that regret a recent software purchase report that the most common product-related causes of dissatisfaction are related to the software being more expensive than expected (36%), difficulties with training and onboarding (34%), and poor technical support (31%). On the vendor side, the leading issues were unmanaged expectations (41%), problematic hand-offs (38%), and vendors not living up to their promises (36%).

These findings suggest that many organizations struggle to thoroughly evaluate the total cost of ownership and set clear expectations with potential vendors. As a result, buyer’s remorse often stems from insufficient due diligence during the evaluation phase. Without a comprehensive review of both the product and the vendor, businesses risk investing in technology that underdelivers on value or is difficult to implement effectively.

#2 Merge the value of reputation and research to build a smarter vendor list

So you're starting to look for new software? Before conducting formal research like demos and calls with sales teams, it's normal to have an informal list of potential vendors in mind that you'd like to look into. When it comes to selecting this informal list of vendors, businesses typically start with a narrow list of candidates: 52% of Canadian organizations include only 1-3 vendors on their initial list, and 86% stick to 1-5. Moreover, most businesses (83%) end up purchasing software from a vendor that was on their initial list always or most of the time. This suggests that the initial impressions vendors give businesses can influence their final decisions. However, it may raise the issue of whether these final decisions are made without conducting deeper research.

When compiling an initial list of software vendors, businesses typically choose vendors based on reputation (55%), previous experience (47%), and peer recommendations (36%).

While these factors are useful starting points, they can often contribute to a narrow selection process. This approach may exclude emerging vendors with innovative solutions or overlook critical issues like integration challenges and customer support quality.

Furthermore, when conducting formal research to develop a shortlist, 43% of buyers rely heavily on customer reviews, 40% on Google searches, 39% on professional recommendations, and another 39% on product reviews and comparison websites. Interestingly, 23% of buyers use generative AI to inform their decision-making process.

While generative AI can help provide quick and synthesized information sourcing, as well as summarize key features and requirements and offer suggestions without commercial bias, it has its downsides when it comes to shortlisting software. These include:

• Limited real-time data stemmed from the fact that AI models are not updated constantly may result in inaccurate portrayals of pricing or features. 
• Lack of specialized expertise needed for specific, nuanced software evaluations.
• No hands-on testing to assess real-world performance or user experience of software products
• Potential biases influenced by the data the model was trained on
• Inability to cater to specific needs and integrations that AI models may not comprehend despite the prompts.

#3 Align software purchases with business goals to avoid future regret

One of the survey's most critical takeaways is that many businesses realize they didn’t clearly define their goals before making software purchases. In fact, 41% of respondents who regret a purchase from the last 18 months said they would clarify their goals and desired outcomes in future purchases to avoid regret. This may signal a disconnect between the software selected and the actual business problems it was meant to solve.

Without a clear understanding of how the software fits into the broader business strategy, companies risk investing in tools that don’t align with their operational needs or growth plans. This lack of clarity can result in underutilized software, delayed implementation, and ultimately, lower-than-expected returns on investment. Clear goal-setting ensures that technology investments directly support business objectives and provide measurable value over time.

#4 Seek strong vendor support and engagement during final decisions for a smoother onboarding

When it comes to finalizing a purchase, our respondents reveal that vendor customer support (62%) and product trials (61%) are the most influential factors. In fact, most businesses include only 1-3 vendors on their final list, facilitating the choice to opt for in-depth conversations, demos, or trials before making a decision.

However, while many companies place significant weight on product trials, it is also key to value the importance of vendor relationships post-purchase. Poor vendor support, particularly during onboarding or when issues arise, can quickly turn a promising product into a frustrating and costly investment.

Software regrets are rooted in the planning stage and thoughtful, goal-driven approaches can prevent future mistakes 

The data is clear: while Canadian businesses are increasingly investing in technology to fuel growth, many are facing significant challenges in their software-buying process. This makes it crucial to take a more thoughtful and strategic approach to software selection.

By avoiding common pitfalls—such as rushing decisions, relying too heavily on reputation, and failing to clarify goals—businesses can make smarter investments that provide real value over time. Tools like BI software can help organizations harness data insights, while comprehensive business suites, like integrated software platforms, can help streamline operations. 

Taking the time to vet vendors, perform thorough research, and align software choices with long-term business objectives is essential to avoiding future regret and ensuring that technology supports rather than hinders business growth. To try to prevent future regret, develop a clear and methodical software purchasing process that includes comprehensive research, cross-functional stakeholder engagement, and well-defined goals.

Regularly reassess vendor relationships and software performance to ensure that your technology investments continue to align with your evolving business needs. Consider exploring detailed reviews, such as those provided by software comparison tools, which offer insights into pricing, functionality, and user experience. Investing time and resources in the buying process will pay off in the form of better software choices, fewer regrets, and a stronger foundation for growth.