Sales Win: Lessons from Saudi Aramco’s $25.6 Billion IPO
How Aramco’s Record-Breaking IPO Showed the Power of Strategic PositioninG
Title:
The Largest Sale in History: Lessons from Saudi Aramco’s $25.6 Billion IPO
Subtitle:
How Aramco’s Record-Breaking IPO Showed the Power of Strategic Positioning
In 2019, Saudi Aramco’s $25.6 billion IPO became the largest in history, redefining what it means to execute a strategic sale. While it was not a traditional sales deal, this milestone was a masterclass in positioning, timing, and leveraging market demand. As the world’s most profitable company, Aramco capitalized on its global significance, transforming oil’s role in the global economy into a financial triumph. Today, we will explore the strategies that made this IPO so successful and how you can apply these lessons to your own sales goals.
The Power of Strategic Positioning
Position your offering as essential, not optional. Aramco approached this IPO by emphasizing its status as the world’s most profitable company and the backbone of the global energy supply. By doing this Aramco positioned itself as a must-have investment.
Consider This:
Frame your product or service as indispensable to your target audience’s needs.
Define the problem that you are solving and evangelize it.
Highlight how your offering supports long-term growth or stability.
Highlight the wins you have helped create with your product or service.
Build a narrative around why your product or service stands out in the market.
Again define the problem and emphasis why it needs to be solved.
How will your customers life be better when they solve the problem?
What will be true about their business once this problem is solved?
Timing Is Everything
Maximize value by launching at the right moment. Aramco’s IPO was carefully timed to align with favorable market conditions, government goals (Saudi Vision 2030), and investor demand for stable, high-return assets. Of course you do not have a crystal ball, but you do not want to be selling domains in 2001, or mortgage CDOs in 2009. That means that you have to have an eye on the market. Find mentors to help you know when the market is going up and plan your sell or launch on the upswing and not the downswing.
Consider the Following:
Assess market conditions before launching a product or sale.
Use market research to understand the demand.
Yes, this may cost you some money up front, but consider the cost if you launch a product that no one wants.
Ask you current customers to help you get the word out. While facebook ads can be great, word of mouth is even better.
Also, ask your customers for feedback on the product. How could it be better?
Understand external factors, such as economic trends or customer needs, that may affect demand.
Find a mentor, someone that has been there and done that before. Sure maybe you are a competitor for them, but maybe you are not. You would be surprised at the information that people will share if only you ask.
Be patient—sometimes the best results come from waiting for the right time.
If the signal is there to wait, do not push a head, wait. You are excited to start I know. You also have your life waiting for this success, I know that too. But be patient when you need to be. The time will come to sprint and to sprint hard.
Leveraging Credibility and Influence
Build trust and authority to attract high-value customers. For Aramco this meant decades of proven success and dominance in the oil industry gave them unparalleled credibility. Investors knew they were buying into a global leader. It also helped when you can basically turn the tap and get more oil. Nevertheless, find ways to build your influence. Give information away for free that helps people. Do research to support your approach. Find customers that will help you write case studies or research papers. Put time in upfront to build that credibility and it will pay dividends when you go to market.
Consider the following:
Use case studies, testimonials, or data to prove your product’s reliability.
When you do not have any customers data is key.
When you do have customers case studies are key.
Align with respected partners or organizations to enhance your reputation.
Do not be afraid to ask those that have credibility to recommend you. Whether that be a customer or someone parallel to your work. You never know until you ask.
Make credibility a central part of your pitch—people invest in what they trust.
If you are not the right solution today, tell your customer that. While it may hurt your short term revenue it will help your long term credibility and that is invaluable.
Also, if you make a mistake, or are going to miss a deadline be upfront about it. Come to the customer and be honest about the issue. Then let them know how you will fix it and make it right.
Action Step:
Spend 30 minutes reflecting on your current sales strategy:
How are you positioning your product or service as indispensable?
Are you leveraging your credibility and building trust with customers?
What steps can you take this week to generate excitement and demand for your offering?
Write down three specific actions to refine your approach and maximize your sales potential.
Additional Reading:
“The Story Behind Saudi Aramco’s IPO” – Financial Times
“How to Time Your Product Launch” – Harvard Business Review
“The Importance of Strategic Positioning in Sales” – Forbes
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