Technology consolidation from mergers and acquisitions offers new opportunities for software vendors
Amid the post-Covid rebound and as economies continue to recover, mergers and acquisitions (M&A) are making a big comeback
According to the Office for National Statistics, dealmakers in the UK announced around £3bn of domestic M&A deals, £32.8bn of outbound M&As and £10.7bn of incoming mergers and acquisitions in the third quarter of 2021.
For technology vendors, there is significant potential to be found in introducing new solutions to companies consolidating their software stacks following a merger and acquisition. To take advantage of these opportunities, sales and marketing professionals must be armed with the right information. This information should identify the best way to reach potential buyers and software decision makers through different channels to support their lead generation efforts. Impactful and accurate data for lead generation is a critical component that B2B marketers need to have to maximize their company’s overall revenue growth.
Our recent survey of software makers in the UK revealed that almost 8 in 10 IT buyers are dissatisfied with their existing software services. However, only 2 out of 10 have changed supplier. It was also found that a timely call from a salesperson could be enough to influence their decision to switch suppliers.
From knowing your potential buyers in-depth to finding the best way to approach them, here’s some actionable insight to help B2B software vendors find opportunities in today’s booming M&A market.
Know your prospects
When a company goes through an M&A, there will inevitably be a consolidation of teams. As responsibilities change hands, software stacks will be reviewed with a strong possibility of moving to a new vendor. To this movement is added the “great resignation”. With so many people changing jobs, it’s frustrating to spend hours cold calling only to find that sales targets are no longer within the company or responsible for product purchases. To avoid this, it’s crucial to ensure that teams have access to high-quality, up-to-date data that reveals the right person to contact in each organization.
Beyond knowing who to contact, knowing when to contact them is another big issue for sales and marketing teams. While 70% of buyers review the tech stacks they’re responsible for at least quarterly, 52% of buyers’ purchase cycles last less than a month. However, this short window of opportunity may differ when a merger and acquisition has taken place. To maximize opportunities, sales and marketing professionals need the right contact details to open a dialogue with buyers when looking for a new supplier.
Additionally, according to our research, 37% of people prefer contact via email, while 33% prefer approaches via a social platform such as LinkedIn (luckily for salespeople, only 2% said they don’t want to hear about potential suppliers). This data highlights the need for marketing and sales teams to access all of this information, whether it’s a link to someone’s LinkedIn profile, email address or appropriate phone number. ‘a. Without it, teams will be crippled as they attempt to contact potential buyers on platforms they don’t prefer.
Timing is everything
For successful multi-channel attribution, highly accurate data intelligence is required. The right data solutions will help ensure marketers can reach the right people at the right time. Hundreds of
our survey participants validated the principle that “timing is everything”, particularly when 33% of buyers said that a call from a sales representative when they are in the market is enough to influence their decision to change software provider.
B2B companies that provide their sales and marketing professionals with information about who is in the market for their solutions and when will not only increase their organization’s potential to reach and convert buyers, but they will also optimize generation efforts. pipeline and maximize return on investment.
Be a trusted supplier
The fact that more than half of software buyers assess their technology stacks at least quarterly forces vendors to maintain high service standards.
For companies preparing for, going through, or exiting M&A activity, this includes how current and potential vendors handle privacy, security, and compliance. Organizations these days care a lot about how companies collect, deliver, and use data, and are understandably concerned and unhappy with how some sales teams approach it.
To identify leads in this evolving era of increased privacy and compliance, sales and marketing teams that use smart data models and analytics that adhere to strict compliance standards are highly desirable. Synthetic data that augments real data does not compromise personal or sensitive information and provides training data for AI models to accurately manage real-time behaviors, deliver personalized experiences at scale, and manage pipeline activities.
Using buyer intelligence in this way is crucial for B2B software vendors looking to rise above the noise of competitors. These software providers will build and maintain trust with their customers while improving the success of their demand-generating initiatives.
About the Author
Chris Whife is Global Managing Director at DemandScience. DemandScience is a global leader in buyer intelligence, accelerating demand generation for the world’s largest software, technology and B2B companies. Leveraging decades of experience in B2B market intelligence, analytics, content trends, and predictive intent, DemandScience delivers sound data and priority buyer insights that align sales professionals and marketing with more qualified audiences.
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