IBM Sales Centre Visit: My Experience

Introduction

The means by which companies sell their solutions to clients is constantly changing due to advancements in technology and means by which clients search for products and services. In this academic essay, I will detail my experience of visiting a sales centre in the technological powerhouse of IBM, and how they are embracing the digital age in connecting and selling to their customers.

1. Reasons you chose this Company

The world we live in today is becoming more connected than ever before. As a result, people are expecting to be able to purchase quicker and faster. This has paved the way for digital sales to take over. IBM operates under a B2B landscape, which has been transformed through digital innovation. (Rowley & et al, 2019).

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Today, 67% of the buyer's journey is now experienced digitally. (Tremblay, 2017).

Electronic data interchange (EDI), among other technologies, has propelled the B2B landscape beyond traditional boundaries. (Gervert & et al, n.d.).

As a result from this digital wave, field sales have slowed down dramatically. Field sales drive up costs and trade is limited to people within the same geological area. Digital sales allow for large amounts of volume and money to be moved quicker than field sales ever could. Studies have confirmed this. Martin reported 46% of participants agreed there is an ongoing shift from field sales to digital sales. (Martin, 2013).

Photo taken from inside IBM’s campus. It is the largest Digital Sales Centre Worldwide.

I have a genuine interest in technology and the latest trends in the business world. For this reason, I wanted to have a valuable experience in this environment. IBM is one of the world’s leading technological companies. They are leading the field in artificial intelligence, something that interests me also.

As my cousin works there, I was referred to a manager in which I had contacted to set up the shadow day. The definition of a referral is the ‘act of telling someone about the positive features of a person or a business, or the person who is being referred’. (Your Dictionary, 2018)

2. Background on the company

1. History

IBM - International Business Machines, is a multinational consulting company and technology. IBM is now one of the world's leading technology organizations with its origins in the United States. (Success story, n.d.).

The company was set up in 1911, formally known as CTR (Computer Tabulating Recording Company). It got its initial name form the merging of three separate companies; Tabulating Machine company, Computing Scale company, and International Time Recording company. In 1924, Thomas J. Watson changed the name of CTR and formally founded IBM (Bellis, 2019)

From the start, IBM has defined itself not through the sale of products ranging from commercial scales to punch-card tabulators, but through its research and development. (Bellis, 2019)

2. [IBM Today

IBM is the 8th most valuable company in the world, with a net worth of $170.90 Billion. In 2018, they generated $79.14 billion in revenue alone. (IBM, 2018). The company has an outstanding global presence, operating in over 170 countries. (Bnamericas, 2019)

They currently have 350600 employees, nicknamed ‘IBMers’. (Statista, 2018). In Ireland, they employ more than 3,000 people across a wide range of businesses and locations. (Top 1000, 2019)

In 2018, they won multiple awards, including winner for artificial intelligence for business with over 20000 engagements across 20 industries. They also were number in terms of hybrid cloud. 47 from the Fortune 50 rely on IBM’s cloud services, which generated $19 billion for the company. (IBM, 2018).

3. Differentiator

Since 1924, IBM has prided itself on being the one of the most reliable and trustworthy technological companies in the world. There business has always revolved around their mission statement of leading ‘in the creation, development, and manufacture of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. (Lombardo, 2018).

4. IBM - “Think of us a Volvo”

When I asked what made IBM different on my shadow day, I was asked to compare the company to Volvo. The company is not all bells and whistles. It is not the flashiest item you will ever by nor will it provide you the same excitement as a Ferrari. However, the Volvo is respected globally. The brand is trustworthy and has a deep history with its customers. They are experienced and have a rich history of being a market leader in their respected field. IBM is the Volvo of the technological world.

3. What is their Sales process

‘The Sales process is a series of ordered and value-added steps towards a predetermined goal which is a sale’. (Eriksson, 2013).

A good sales process focuses not on just generating and closing deals, but ensuring that the client experience is as good as it can be, increasing the chances of future sales. This is extremely important, with Cespedes stated that less than 10% of companies effectively execute their strategic process. (Cespedes 2014).

IBM pays attention to all stages of the sales process, from prospecting, closing a deal, and nurturing client relationships for future sales. There salesforce is divided into three roles:

1. Business Development Representatives (BDRs) - Prospecting
2. Digital Sellers and Brand Specialists - Closing Deals
3. Client Success Managers (CSM) and Client Executives - Nurturing client relationships.

On my shadow day, I was introduced to synergy of these three roles and how they complement each other, with the ultimate goal of increasing sales.

1. Business Development Representatives (BDRs) - Prospecting

The first step in IBM’s sales process begins with their BDRs. Their role in the process is to develop and qualify leads and pass them to the digital sellers and brand specialists in stage two. In sales, this is referred to as prospecting. Rippe and Campbell define prospecting as ‘the salesperson searches for and identifies potential buyers who have the need, willingness, ability, and authority to buy the salesperson’s offering’. (Rippe and Campbell, 2017).

BDRs focus mainly on inbound leads but also assist with outbound sales campaigns. They are connected to online chats and can answer any queries visitors to their website may have. BDRs also get notified when visitors view certain IBM solutions or white papers on the IBM site. The BDRs reach out and qualify that there is an interest from a lead on a certain solution. Once this is confirmed, they conduct a warm handover to a Brand Specialist who progresses the sale. These two approaches are examined in detail below.

The first method used by BDRs is by where a lead downloads a ’white paper’ from IBM’s website. This is an information sheet detailing a specific product or service provided by IBM. A lead is required to fill in personal details in order to download a ‘white paper’. This download sends an alert to IBM’s database, which in turn gets passed on to the most suitable BDR for that specific lead. This is referred to as an ‘alert’ by the BDRs. On my shadow day, it was explained to me that IBM receives thousands of these ‘alerts’ daily. This creates opportunities and qualified leads which are then passed onto the Brand Specialists/ Digital Sellers in stage two of the sales process.

The second method by which BDR develop leads is through IBM’s online chat forum. These forums allow the lead to gather information on a particular product or service from a BDR. As these conversations are short and informal, a relaxed atmosphere is created, allowing for an organic relationship to build. Similar to the ‘white paper’ download, the leads are provided information about their quiry and are encouraged to investigate further.

However, each one of these leads must be qualified into a prospect before they are passed onto the second stage of IBM’s sales process. This is where I was introduced to ‘BANT’.

‘BANT is a sales qualification framework used to identify and pursue the most qualified prospects based on their Budget, Authority, Need, and Time Frame.’ (Kooij, P4, 2017) (Leadliasion, 2019) The four key areas of BANT explained

This qualification technique was conceived by IBM and is used throughout the business world today. (Kooij, 2017). According to IBM, the lead is considered ‘validated’ if they meet three out of the four BANT requirements. (IBM, 2019).

Depending on the circumstances, the salesman or salesperson can decide how strict they follow this technique.

Once a BDR has qualified a lead into a prospect, the they will pass this prospect onto the Digital sellers/ Brand specialists in the second stage of the sales process.

2. Digital Sellers and Brand Specialists - Closing Deals

Once the qualified lead has been ‘BANT Qualified’, it is then the responsibility of the Brand Specialist to progress the deal. The Brand Specialist familiarizes himself with the client, client industry, history with IBM and what was discussed with the BDR. You can see an example of the preparation a Brand Specialist uses in appendix 1.

The Brand Specialist role is to provide the prospect with an estimate, draw up a specific contract, and, ultimately, close a deal. On my shadow day, I learned how important building credibility with clients is. This is achieved by researching the prospect's background, industry and having a thorough understanding of IBM’s solutions. The approach taken by the Brand Specialist is influenced by the size and history of the prospect provided by the BDR.

For small to medium-sized companies, the seller will go straight to the decision-makers. These are roles like the chief finance officer (CFO) and chief marketing office (CMO). It is highly common that decision-makers have ‘gate keepers’ preventing unsolicited communication from sellers. A ‘gate keeper’ is ‘a person who controls access to something or someone. (Your Dictionary, n.d.). Sellers use certain tricks when calling clients to get past gatekeepers, such as implying urgency, using technical language to overwhelm and convince.

For larger clients, the approach is different. The salesperson begins by investigating the history that IBM holds with that prospect. They ask fellow colleagues for information about the prospect and how they have handled them in the past. Background checks on the company are also carried out. This provides the salesperson with valuable information in which they can use to develop a relationship with the prospect. From this, the salesperson can assess which areas of the prospects business need the work of IBM.

In some cases, the prospect can act as a mean of communication to the upper levels of that company. Therefore, it is vital that Brand Specialists develop a relationship with these prospects. On my shadow day, it was explained that Brand Specialists would add the prospect on LinkedIn and begin communicating about the information provided by the BDR. Over time, the relationship would build and trust is born. As a result of this, Brand Specialists can then move up the levels within the business, contact and building relationships over a period of time. During each of these relationships, IBM close deals, generating business ties and revenue.

However, no matter how large or small the prospect is, the method used by salespeople to close the deal is the prospect's Compelling Reason to Act’ (CRA). This is where the salesperson ‘creates a value proposition that motivates their client to take action now. (Alvilhiera, 2017).

Clarifying this early on is extremely important for IBM. If the prospect has no reason to act now, they won't. This is the reason B2B sales-people lose well-qualified leads. (Apollo, 2019).

Following the closure of the deal, the process is handed over to the final part of the sales process: client success managers (CSMs) and client executives (CEs) - nurturing client relationships.

3. Client Success Managers and Client Executives - Nurturing client relationships

The third stage of IBM’s selling process is the follow-up. The role of the follow-up is ‘ensure customer satisfaction and continuity of business relations’. (Eriksson, J., P4, 2013). Consumers who are dissatisfied with a service will tell many of their acquaintances. (Susskind, 2002).

Kotler and Armstrong describe the importance of this for a business, as it reduces buyer concern which may have (risen) from the sales. The salesperson's interest with the buyer is further cemented during the follow-up also. (Kotler and Armstrong, 2013).

IBM divide their follow-up into two areas: Client Success Managers (CSMs) and Client Executives (CEs).

For small to medium-sized clients, IBM issue CSM’s to follow up. These are one-person teams which have multiple clients in which they are responsible for. Their role is to act as a point of contact for the client while continuously trying to improve the relationship.

As the relationship builds and progresses, CSM’s are also encouraged to offer their clients upgrades on products and services. This allows IBM to generate further revenue streams, while also building relationships with their customers.

The other follow used by IBM is for their larger clients. These are the key accounts for IBM, otherwise known as ‘Key Account Management’.

‘KAM is about identifying the most vital customers (key accounts) and work towards them with more attention and close collaboration compared to the other customers possessed by a company. It is implemented in order to create strong relationships with key customers in a long-term perspective’. (Andersson and Johansson, P9, 2015).

Here, CEs are issued to one individual client. Due to the importance of these key accounts, CEs can have a team between one hundred to one thousand for the ongoing follow-up. These executives are assigned to IBM’s largest clients, with examples including Vodafone and Lloyds Bank. (Ahmed, 2018). As these companies generate huge amounts of revenue, it is crucial IBM has an extensive team behind these follow-up. Similar to the CSMs, CEs try develop and strengthen the relationships with their clients.

4. Future plans for the company

The future of IBM is exciting. IBM president and CEO Ginni Rometty explained the next phases for the company will focus on their cloud services and artificial intelligence (AI). Romney outlined how that AI has driven the cloud and that we are ‘all standing at the beginning of (a new) chapter of this digital reinvention’. (Tech Central, P6, 2019). Romney has expressed how IBM will develop AI in three ways; core AI, trusted AI and scalable AI. (Tech Central, 2019). These will allow IBM to scale up AI platforms and be leaders for the future.

Focusing on their cloud services, in October 2018, IBM acquired Red Hat, a US company focused on open-source software and technology, in a deal worth $34 billion. (Sherman and Kolodny, 2018). Open source was the biggest theme for technology companies in 2018. With Red Hat CEO Jim Whitehurst joining IBM's senior management team and reporting to CEO Ginni Rometty, the open-source, enterprise software maker will become a unit of IBM's Hybrid Cloud division. (Kennedy, 2018). This acquisition ties directly into IBM’s vision for their four key strategic imperatives: cloud, social, mobile and analytics. (Sherman and Kolodny, 2018).

IBM and Red Hat said the deal would allow companies to do even more cloud work, keeping their apps and data portable and secure, regardless of which cloud or hybrid technology they adopt. (Kennedy, 2018)

5. Key Takeaways

1. Shadow Day

My three key takeaways from the shadow day experience were:

1. I gained an experience of what working in market-leading company was like. Everyone made me feel welcome and like I belonged there. I was introduced to one of the leading managers, Jeffrey Moran, at the beginning of my day. Jeffrey took time out of his busy schedule to personally give me a tour of the different buildings within IBM. Although I am only a college student, he still showed an immense amount of respect toward me. Jacques Heffernan sat down and held two-hour interview in which I gained information about the business practices and his personal background. The atmosphere surrounding the campus was all towards one goal: being the best. From this, it gave me a direction in which I can work my career path too.
2. I acquired new skills that I can use in my professional career. Prior to the shadow day, I had to send emails and contact different levels of the company in order to grant me access to the campus for the day. On the day itself , I noticed there was a high level of professionalism which I have never experienced before. Everyone I was introduced to shook hands with me, while also maintaining eye contact, among other things. This added to my overall experience of IBM. I can take these details along with me and acquire them for my future professional career.
3. The performance of the company is second to none. Their attention to detail was transparent in every aspect of the company. Everyone on the campus has a vital role in working towards their targets. This ranges from the cleaners all the way to the CEO. They all want to meet their targets while maintaining a sense of pride. Everyone is shown equal respect and given the same opportunities, regardless of their background. This morale richness is something I can strive towards.

2. Module

My two key takeaways from the sales module were:

1. The sales module has inspired me to set goals and targets for both my personal and professional life. Kieran always explained that we are all a ‘driver of one’. We should all strive to be the best we can be, even if it means choosing the road less travelled. We are all in charge of our own paths in life. This is one of many valuable lessons I gained from the module. I also enhanced many skills that varied from working in a group to thinking under pressure on my own. In particular, the video that was required for our group assignment provided me with leadership skills. I took responsibility for any of the queries myself or my team members had as I was the point of contact with the lecturer. Although this created pressure, I handled myself in a collective manner and felt as though I strived as the leader of the group. I can call on this experience in future projects.
2. The lectures that I attended were both insightful and involving. The lecturer, Kieran, has a sense of pride about the topic. Kieran was able to call upon many anecdotes from his experiences surrounding sales in both his professional and personal career. I truly enjoyed listening to these experiences as they made the module enjoyable, unlike some of my other modules. From this, it has given me extra motivation to find a career that I am as passionate about as Kieran is about sales.

6. Summary of experience

Overall, my experience of IBM was extremely valuable. The world we live in today has so much to thank IBM for. The digital world is accelerating at a pace few thought possible years ago. IBM is at the forefront of this.

I was able to put the skills and theories learned from the classroom into practice. Organizing the day itself provided me with a sense of accomplishment. It allowed me to showcase my professionalism to managers in an area I have great admiration and respect for.

I gained an invaluable experience of what it is like to work in a market-leading company. The atmosphere of the IBM is somewhere I want to be. The personal tour I received at the beginning of the day from Jeffrey and the two hour interview from Jacques were personal highlights. The scale of the operation is outstanding which showed throughout the shadow day. The employees are hard-working and extremely focused towards their individual and collective goals. Everyone is an example that hard work does pay off.

My shadow day experience was insightful, educational and has provided me a sense of direction in which I can drive my professional career towards.

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Appendix

1. Appendix 1 [https://lh6.googleusercontent.com/eWQUvEGQS_kodpmDGabe7_FdvHYAmkz2A4Mst57tRWGTkV5HkqeoOUUpSsqGTObVbdqGDZ3LV3otv_C6PZprGoeyOV4j47W-jkxFlIXwzvyikHrvQzsg3E62XrzB1e3ZVj2tTvBo]
2. Appendix 2 Visitors pass I was given for my time on the IBM campus. This gave me access to numerous areas of the different buildings.