The IBM 701 wasn’t just the first mainframe it was the sale that secured IBM’s reputation as a leader in computing for decades. This monumental deal in 1952 with the U.S. Defense Department was not just about delivering a cutting-edge product, it was about solving a massive problem for a critical customer and laying the groundwork for an industry-shaping legacy. Today, we’ll explore the strategies behind this historic sale and what you can learn from it to drive transformative wins for your own businesses.
Focus on Solving Big Problems, Not Just Selling Products
We have covered this before in previous posts, make sure you are solving a problem for your customers. The IBM 701 was not marketed as just a machine with impressive features, it was positioned as the solution to a pressing problem: national defense. By framing the product as a way to address Cold War era challenges, IBM aligned its innovation with the U.S. government’s priorities.
Things to consider:
Identify a key customer problem and position your product as the definitive solution.
Become an evangelist for the problem. Focus on talking about the problem at least twice as much as you talk about your features.
Start with a well-defined niche where your product can make a significant impact.
Identify your minimum viable audience and between where those people are. How can you get in front of them weekly, daily, or monthly. Whatever the right cadence is.
Build trust by demonstrating how your solution directly addresses the customer’s pain points.
Again, evangelize the problem. Then get customers to speak to the solutions you brought to them.
Just like IBM, do not sell features sell the vision of a problem free future. That future is achieved through the use of your product or service. Then of course you have to deliver.
Build Strategic Relationships That Lead to Sales Wins
While I do focus a lot of the customer service side of sales here and not so much on the relationship building side of sales. It is important to build relationships with key customers. Consider that IBM understood that selling a cutting-edge product like the 701 required not just technical excellence but strong relationships. By targeting the U.S. Defense Department, IBM secured a highly influential customer and opened the door to future government and commercial contracts.
Things to Consider:
Focus on landing one or two major clients early who can validate your product in the market.
Ask these customers for a lot of feedback, both on the product as well as the process of working with your company.
Develop deep relationships with stakeholders who can influence others in the industry.
This keeps you plugged into the future challenges that will come in this industry.
Use case studies or testimonials from early adopters to build credibility and attract new customers.
Nothing sells better than a satisfied customer talking about how much easier their life is after your product.
Your first big sale is not just revenue it is proof of your product’s value and a foundation for your reputation. It also confirms that others see your problem as worth solving.
Turn Early Wins into Long-Term Advantage
When you start to get momentum ride that momentum to longer term success. The IBM 701 was not just a sale it was the start of IBM’s dominance in the computing industry. By leveraging the success of the 701, IBM became synonymous with reliability, innovation, and leadership in computing, ensuring long-term growth and loyalty from customers.
Things to consider:
Treat your first sales as opportunities to refine your product, improve your processes, and gather feedback.
You will need to change something so go into the first sales knowing that you need feedback and you need to adjust. Yes, you want to get your product into the world, but know it will shift.
Build systems and processes that allow you to scale once you’ve secured early wins.
Repetitive tasks are a great place to start building processes. Look for ways to automate and outsource these tasks. That way you can focus on winning the next sell and building better products and services.
Use your first customers as evangelists to drive word-of-mouth marketing and future opportunities.
Every sale is a stepping stone to bigger opportunities focus on the long-term value of each win. Also ensure that you have an after action review from each win and the loses so you can adjust and prepare for the next win.
Action Step:
Schedule 30 minutes this week to reflect on your next sales opportunity. Ask yourself the following questions:
What is the key problem you are solving?
Who are the customers or industries that would benefit the most?
How can you turn this sale into a long-term advantage for your business?
Write down three specific actions you can take this week to position your product as the solution to a critical customer problem.
Additional Reading:
1. “The History of IBM and the Birth of Mainframe Computing” – Smithsonian Magazine
2. “The Power of Landing Key Clients Early” – Harvard Business Review
3. “How Strategic Relationships Drive Sales” – Forbes