Redefining B2B SaaS Success: The End-User Imperative in the Age of AI
Why ignoring end-user needs in AI-powered SaaS could cost enterprises their competitive edge—and how aligning procurement with user experience unlocks sustainable growth
“I genuinely don’t get why the company insists on using XYZ—it’s so clunky! And I heard it’s expensive too!” This sentiment is all too common among users of traditional B2B SaaS products.
But does this mean procurement teams are dropping the ball? Hardly. The procurement process in medium and large enterprises is notoriously rigorous, involving extensive evaluations and vendor comparisons. So why do employees still end up stuck with products they dislike?
Source: OMERS Venture
Opinions are my own.
The Procurement-User Disconnect: A Structural Flaw
To understand this gap, we need to dissect how enterprises purchase software and how vendors pitch their solutions. (This discussion centers on medium and large enterprises, as smaller firms typically adopt more flexible procurement processes.)
How Procurement Prioritizes—And Why It Misses the Mark
Enterprise procurement involves multiple stakeholders, such as department / function head, legal, IT, procurement, finance. Department / function head takes the lead in initiating the process. For example, training solutions fall under the training department head; HR systems are typically overseen by HR leadership.
These decision-makers often hold senior positions, managing budgets and KPIs linked to procurement performance. Success can mean promotions; failure invites scrutiny. Procurement teams craft comprehensive RFPs (Requests for Proposal), prioritizing:
Security and compliance
Integration with existing tools
Competitive pricing
Return on Investment (ROI)
Essential core functionalities
Vendors respond by crafting pitches that tick these boxes.
But here’s the catch: end-user feedback rarely factors into this equation.
Why End-User Needs Get Lost in Translation
Procurement leads may understand workflows at a macro level, but they’re not in the trenches:
They don’t know how employees complete tasks daily.
They’re unaware of user pain points with current solutions.
They might lack clarity on features that would genuinely boost productivity.
This disconnect compromises user experience and undermines product value.
Users want tools that are:
Intuitive and easy to learn
Thoughtfully designed
Fast and accurate
Seamlessly aligned with daily workflows
These seemingly straightforward needs are surprisingly tough for procurement teams to articulate. A sleek interface that impresses decision-makers might frustrate users.
Meanwhile, vendors targeting large enterprises deploy formidable go-to-market (GTM) teams. Sales reps—driven by commission—do whatever it takes to close deals. Yet, because decision-makers rarely demand user-centric features, these crucial aspects remain overlooked.
The outcome?
Procurement leads are confident in their choices. Sales teams celebrate wins. Users, however, are left grappling with tools they resent.
Why AI B2B SaaS Can’t Afford This Gap
While traditional SaaS products survived despite user dissatisfaction, AI-powered solutions face higher stakes. The same procurement-user disconnect could prove fatal:
Substantial Economic Losses: Employees may reject AI tools that are difficult to use, resulting in missed opportunities for cost savings and productivity improvements that AI could offer.
Intensified Post-Sale Challenges: Vendors risk not only customer churn and deteriorating long-term relationships but also increased pressure to justify ROI in a more performance-driven market.
Why Can’t AI Products Rely on the Old Playbook?
You might wonder: Traditional B2B SaaS products often achieved IPOs despite mediocre user experiences. Why can’t AI products do the same?
1. Increased Attention to ROI in the Market
In 2024, reports from A16Z, Deloitte, and others revealed that enterprises have become more conscious buyers, with ROI emerging as the top priority. During product bidding phases, enterprises now frequently run pilot programs and A/B testing to directly measure product effectiveness. Purchasing decisions are then made based on clear, data-backed outcomes.
Additionally, AI vendors are adopting outcome-based pricing models, meaning they only get paid when their AI solutions help clients achieve specific results. This pricing shift significantly raises the stakes for AI vendors to ensure user adoption and satisfaction.
2. AI Demands Active User Engagement
Unlike traditional B2B SaaS products, many AI solutions are typically embedded in users' daily workflows, serving as tools to enhance efficiency or automate tasks. In this process, humans and AI collaborate to complete a series of tasks.
Here lies the key insight: designing a product that requires a high level of user engagement demands that product designers have a deep understanding of end-users' workflows, habits, pain points within these processes, and the underlying causes of those pain points.
Only by leveraging this knowledge can designers determine whether the AI product can effectively address these challenges. If end-users cannot seamlessly adopt the AI solution, its full potential value remains untapped.
3. ROI Hinges on Adoption Rates
The ROI of AI products largely depends on the depth and frequency of user engagement. For example, even if an enterprise purchases an AI coding assistant or knowledge retrieval system, the expected ROI will be significantly reduced if end-users are unwilling to use the product due to high adoption barriers or poor user experience.
4. Agile Feedback Loops Are Critical
AI products thrive on rapid iteration, improving through continuous user feedback. Unlike traditional SaaS, where stability matters most, AI demands flexibility and responsiveness to evolving user needs.
Bridging the Gap: How Enterprises and Vendors Can Win Together
For Enterprises:
Uncover User Needs: Use surveys, interviews, and focus groups to get firsthand insights.
Embed User Feedback in RFPs: Align procurement goals with user expectations.
Set Clear Pilot Metrics: Define measurable adoption and performance goals before full deployment.
Bring Users to the Table: Involve end-users in vendor discussions to surface real needs.
Create Feedback Loops: Maintain regular user feedback cycles and share insights with vendors.
For AI Vendors:
Design for Real Users: Go beyond decision-makers—prioritize user experiences and preferences.
Understand User Workflows: Engage users regularly to identify friction points and opportunities.
Adopt Agile Mindsets: Be ready to pivot product design based on user feedback.
Reframe Sales Approaches: Sales teams should advocate for user involvement during procurement and collaborate with product teams early.
Closing the Gap for Long-Term Success
Ignoring user needs in traditional SaaS cost companies user satisfaction. In the AI era, it could cost them the entire deal.
For AI B2B SaaS to unlock true enterprise value, procurement processes must evolve. Enterprises need to champion user needs from day one. Vendors must rethink sales strategies, centering user adoption as a core metric of success.
The future belongs to AI products that not only meet business objectives but also win the hearts of the people who use them every day.