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How Enterprise Buyers Actually Buy B2B Software

Most vendors misunderstand the enterprise buying process. Here's how $50K-$500K ACV deals actually get made—and why most ABM programs miss the mark.

December 20, 2024
10 min read
By Justin Griffioen
Enterprise SalesBuyer PsychologySales Process
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The Reality Most Vendors Miss

Enterprise buyers don't buy like mid-market buyers. They don't respond to volume-based outreach, generic messaging, or campaign-focused execution. They buy through a structured, multi-stakeholder process that takes 6-18 months and requires deep account understanding.

Most ABM programs fail because they're built for mid-market buyers, not enterprise buyers. Understanding how enterprise buyers actually buy is the foundation of effective ABM.

The Enterprise Buying Process

1

Problem Recognition

Enterprise buyers don't start with vendor research—they start with internal problem recognition and stakeholder alignment.

Key Activities

  • Internal pain point identification
  • Stakeholder alignment and buy-in
  • Budget allocation and approval
  • Problem statement documentation

Timeline & Vendor Role

Timeline: 1-3 months
Vendor Role:

Not yet involved—buyers are solving internal problems first

2

Solution Research

Once the problem is defined, buyers research solutions—but through industry peers, case studies, and technical validation, not vendor websites.

Key Activities

  • Peer network research
  • Case study and proof point review
  • Technical capability assessment
  • Vendor longlist creation

Timeline & Vendor Role

Timeline: 2-4 months
Vendor Role:

Passive presence—case studies, technical content, industry presence

3

Vendor Evaluation

Buyers evaluate vendors through RFPs, demos, and technical validation—but only after internal alignment and solution research.

Key Activities

  • RFP development and distribution
  • Vendor demo and technical validation
  • Stakeholder presentation and buy-in
  • Reference checks and security review

Timeline & Vendor Role

Timeline: 3-6 months
Vendor Role:

Active engagement—RFP response, demos, technical validation

4

Procurement & Contracting

Final stage involves procurement, legal, security, and contract negotiation—often the longest part of the process.

Key Activities

  • Procurement process and vendor selection
  • Legal and security review
  • Contract negotiation and terms
  • Implementation planning and onboarding

Timeline & Vendor Role

Timeline: 2-4 months
Vendor Role:

Compliance and execution—meet procurement requirements, negotiate terms

Key Insights for Vendors

6-18 Month Cycles

Enterprise software purchases take 6-18 months from problem recognition to contract. Most vendors only engage in the final 3-6 months.

Multi-Stakeholder Decisions

Enterprise purchases involve 5-10 stakeholders across IT, business, procurement, and executive levels. All must be engaged.

RFP-Driven Process

Most enterprise purchases go through formal RFP processes. Vendors who track RFP cycles and engage early win more.

Risk Mitigation Focus

Enterprise buyers prioritize risk reduction over feature lists. Security, compliance, and reference validation matter most.

What Enterprise Buyers Actually Value

Strategic Value

  • Account-specific understanding
  • Business outcome alignment
  • Long-term partnership potential
  • Industry-specific expertise

Risk Reduction

  • Security and compliance validation
  • Reference checks and case studies
  • Implementation success track record
  • Support and service capabilities

Technical Validation

  • Integration capability proof
  • Scalability and performance
  • Technical architecture alignment
  • Customization and flexibility

Implications for ABM Strategy

Understanding how enterprise buyers actually buy changes everything about ABM:

❌ Traditional ABM Mistakes

  • • Focus on meeting count, not account development
  • • Engage only in final 3-6 months
  • • Single-threaded engagement
  • • Generic messaging and value props
  • • No RFP cycle tracking

✅ Enterprise ABM That Works

  • • Focus on pipeline coverage across 6-18 month cycles
  • • Engage early in problem recognition stage
  • • Multi-threaded engagement across stakeholders
  • • Account-specific messaging and research
  • • RFP cycle tracking and early engagement

Related Resources

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