Sales trigger events—such as new funding rounds, executive hires, mergers and acquisitions, and contract awards—present vital opportunities for vendors to engage prospective clients. These events often signal a moment of change, where companies may have new needs, reevaluate existing vendor relationships, or seek innovative solutions to support growth or integration.
However, it’s not just about identifying these events; it’s about being the first to reach out. Research shows that the first vendor to make contact after a trigger event is often chosen, as decision-makers are more likely to engage with solutions that immediately address their changing circumstances.
New Funding: Prime Opportunity for Growth
When companies receive new funding, it typically leads to rapid growth, expansion into new markets, or scaling of existing operations. Studies have shown that newly funded companies are more likely to invest in new products and services to support this growth.
For instance, it has been found that companies increase their vendor-related expenditures significantly—up to 40% more—within the first six months following a funding event. This makes the immediate post-funding period a crucial time for vendors to make contact, as companies are actively seeking solutions to support their growth initiatives.
Executive Hires: Fresh Leadership, Fresh Opportunities
New executive hires offer another key sales opportunity, especially in leadership roles like CEO, CFO, or CMO. Newly appointed executives often come into a company with the goal of making an impact, which may include reevaluating current vendor partnerships or seeking out new technologies to enhance company performance.
It’s been observed that companies are 60% more likely to switch vendors or adopt new services within the first six months of an executive hire. Therefore, reaching out early in a new executive's tenure is critical, as they are more likely to be open to change during this period.
Mergers and Acquisitions: Integration Drives New Needs
Mergers and acquisitions lead to significant organizational restructuring and often create demand for new services, technologies, or systems to support integration efforts. Vendors who engage companies early in the M&A process can position themselves as key partners in helping to smooth the transition.
The first six months post-merger or acquisition is typically when the most significant changes are made, making it a critical time for vendors to present their solutions.
Contract Awards: Increased Budgets, Immediate Needs
Contract awards, especially those related to government or large enterprise deals, signal that a company will be increasing its operational capacity, likely needing new tools, services, or infrastructure.
The period immediately following the announcement of a contract award is when companies are most likely to spend on new vendors to fulfill the requirements of their new contract.
Vendors who engage companies at this time are well-positioned to capture new business as companies move to meet the demands of their new contracts.
In summary, sales trigger events provide vendors with a limited but highly valuable window of opportunity to engage with companies when they are most receptive to new solutions. By acting quickly—ideally being the first to contact companies after such events—vendors can significantly increase their chances of winning business, as early engagement often shapes purchasing decisions during these pivotal periods.
Moreover, research from Harvard University supports the idea that being the first vendor to engage with a company after a sales trigger event increases the likelihood of winning the deal. The study found that buyers overwhelmingly favor the first salesperson they meet when evaluating new vendors, as these initial interactions shape their perception of solutions and alternatives.
The bottom line is that connecting after these trigger events and ahead of direct competitors whenever possible is a research-proven strategy for increasing individual sales and company revenues.
