Turn Risk Into Trust: The Strategy That Saved IBM (and Can Save Your Business)
In the 1970s, IBM faced intense competition. The once-unstoppable giant in business computers was suddenly under attack from companies like RCA, Xerox, and Digital Equipment Corporation, all boasting faster machines, bigger memories, and louder ads.
IBMâs iconic System/360 seriesâonce the iPhone of the â60sâwas falling behind. Customers were growing hungry for better, faster, and newer computers, leaving IBMâs sales team in panic mode.
How could they stay on top?
Instead of chasing competitors with specs and features, IBM played a different gameâand it worked brilliantly.
The Strategy That Saved IBM đ
IBMâs sales team leaned on one advantage: trust.
Hereâs the pitch they delivered to buyers:
IBM is the largest computer manufacturer.
Most businesses already use IBMâyou're not alone.
If something goes wrong with IBM, nobody will blame you. But choosing a competitor? Thatâs risky.
The result? Buyers stopped comparing specs. They realized that even if another computer seemed better on paper, the personal risk of choosing a smaller, less proven brand just wasnât worth it.
And thus, the famous phrase was born: "Nobody ever got fired for buying an IBM."
This unofficial slogan became one of the most powerful marketing ideas of all time. Buyers didnât just want the bestâthey wanted peace of mind. IBM later reinforced this with an ad:
"What most people want from a computer company is a good nightâs sleep."
Why Customers Choose the âSafe Optionâ đźđš
This story highlights a common challenge: Even if your product or service is better or cheaper, customers often choose the safe option.
Why?
Risk aversion. B2B buyers, especially in high-stakes environments, make decisions emotionally. They want to minimize personal and professional risks.
Defensive decision-making. Economist Herbert A. Simon called this behavior satisficing. Buyers look for options that are âgood enoughâ and carry the least risk.
Large enterprises or risk-averse industries are particularly prone to this behavior.
So, what if youâre competing against an industry giant? What if you are the challenger?
How Challengers Can Win: 3 Proven Strategies đĄ
1. Counter-Position Against the Leader
Every strength has a weakness.
McKinsey? Brilliant but inexperienced consultants.
Starbucks? Great locations but average coffee.
Find the market leaderâs Achillesâ heel. Then position your brand as the bold alternative. Make them the villain in your story, and become the obvious choice for customers seeking something different.
2. Divide and Conquer
If the broad market is too tough to dominate, narrow your focus.
Donât aim to be the best sales training provider in the world.
Aim to be the best sales trainer for B2B software teams.
By specializing, you become the go-to expert in a niche.
Fewer competitors.
Tailored solutions.
Immediate trust from your target audience.
3. Reduce the Risk
If customers fear choosing a challenger, make it easy for them to say âyes.â
Offer guarantees (and make them bold).
Highlight past success stories.
Be upfront about how youâll handle potential risks.
For example:
Money-back guarantees.
24/7 customer support.
Proof that youâve solved similar problems for other clients.
Buyers care about reducing uncertainty. The more you mitigate their fears, the more likely theyâll choose you.
The Takeaway đ
IBMâs success wasnât just about having the best product. It was about offering buyers something even more valuable: peace of mind.
If youâre competing against a market leader today, donât just try to outdo them on features. Instead:
Position yourself as the bold alternative.
Specialize in a niche where you can dominate.
Build trust by reducing perceived risks.
In a world full of choices, sometimes the least risky option wins.
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