A♣️ The IBM secret: Build relationships for sales success

I've been in business a while, far too long some of you might say. And yes I might even agree with you. But it has given me a lot of experience, and there are some experiences I had early in my career, which are still highly relevant today. In today's market, businesses are constantly vying for customers. To stand out and secure long-term contracts. So it's imperative to develop a robust sales strategy that goes beyond traditional tactics.

Personal context

Having spent years navigating the competitive landscape of the technology industry, I've witnessed firsthand the power of strategic sales techniques. One approach that has consistently proven effective, particularly in the face of fierce competition, is the strategy employed by IBM during its heyday.

Problem or challenge

Many businesses struggle to differentiate themselves from competitors. This can lead to lost sales, decreased market share, and hindered growth.

Complexities

Overcoming this challenge can be difficult for a whole range of  reasons. Businesses may prioritise short-term gains over long-term relationships, leading them to neglect relationship-building efforts. Sales teams might lack the interpersonal skills necessary to cultivate strong connections with potential clients. Furthermore, the fear of competition can hinder businesses from highlighting their competitors' weaknesses, as they may worry about negative repercussions.

Solution

IBM, a once-dominant force in the tech industry, was renowned for its ability to sell expensive mainframe computers. While their success wasn't solely attributed to price or technology, their exceptional sales process played a pivotal role.

One key strategy employed by IBM salespeople was to build deep relationships with senior executives at client organisations. They would cultivate these relationships through personal interactions, such as lunches and dinners. This ensured they were well-known at board level when contracts came up for renewal.

To undermine competitors, IBM salespeople used a subtle tactic known as FUD or maybe 'damning with faint praise.'  They would highlight competitors' strengths while subtly implying potential drawbacks. For example, when discussing HP, they might praise its technical innovation but hint at the risks associated with cutting-edge technology.

Similarly, for ICL, they might emphasise its government backing while suggesting potential instability. By sowing seeds of fear, uncertainty, and doubt, IBM effectively positioned itself as the safer, more reliable choice.

To emulate IBM's success, consider the following strategies:

1. Cultivate high-level relationships: Invest time and resources in building relationships with key decision-makers within your target organisations. Engage in networking, attend industry events, and seek opportunities for face-to-face interactions.

2. Understand your competitors: Thoroughly research your competitors' strengths and weaknesses. Identify areas where you can differentiate yourself and highlight their potential shortcomings.

3. Sowing seeds of doubt: While avoiding direct attacks, subtly create in your clients’ mind doubts over the risks inherent in your competitors' offerings.

Whilst it’s important to always use positive language and avoid direct criticism, see if you can find a way to highlight potential risks, uncertainties, or limitations that may be associated with their products or services. 

Perhaps mention the mirror image positive version of the risk.  They are really innovative (implying risky). 

Or mention your own strength that you know they can’t match.  Whilst we don’t necessarily have all the latest bells and whistles our system does the job safely.  It is proven to be reliable by the five hundred installations we have already completed. 

Benefits

By implementing this strategy, you can:

• Build stronger customer relationships: Deep, long-lasting relationships can lead to increased customer loyalty and repeat business.

• Gain a competitive edge: Differentiating yourself from competitors can help you secure more deals and increase market share.

• Reduce customer churn: Satisfied customers are less likely to switch to competitors.

Why it works

This strategy works because it leverages the power of relationships and builds upon the idea that whilst everyone talks about price, features and benefits, in reality decisions are often driven by a fear of failure. Sowing doubt about competitors can create uncertainty and make your own offerings more attractive. Whether that is a commercial or a personal fear building strong connections with decision-makers and understanding their psychological drivers enables you to influence their purchasing decisions. 

Measurement

To measure the effectiveness of this approach, track metrics such as:

• Customer acquisition rate: Monitor the number of new customers acquired.

• Customer retention rate: Track the percentage of customers who remain loyal to your business.

• Average deal size: Analyse the average value of closed deals.

• Sales cycle length: Measure the time it takes to close sales.

Conclusion

By adopting IBM's proven sales strategy, you can elevate your business's performance and achieve long-term success. Remember, building relationships and sowing doubt are powerful tools that can help you outshine your competitors and secure valuable contracts.