Whether you have an early-stage company or are currently scaling up, nailing your positioning is key to success. In the crowded world of SaaS, standing out isn't just about having the best features or cutting-edge technology. It’s about how your target market perceives you compared to your competitors. This is where positioning comes in.
Effective SaaS B2B positioning helps potential customers understand what you offer, why it matters to them, and how it solves their problems. Let’s explore the importance of SaaS positioning, how to get it right, and the mistakes you should avoid.
If you aren’t sure exactly what positioning means in the context of SaaS marketing, don’t worry – you aren’t alone. The good news is that it isn’t a terribly complicated concept.
At its core, positioning refers to the unique place your SaaS brand occupies in the minds of your target audience. It’s how customers perceive you in relation to your competitors.
But positioning isn’t just a tagline or marketing message. Rather, it’s the strategic foundation that defines how your product is seen in the market. It might help to think of positioning as the answer to this fundamental question: “Why should your customers choose you?”
Many SaaS companies confuse positioning with their brand identity. While closely related, these two concepts serve different functions. A brand is your company’s identity — the tone, values, and aesthetics that reflect who you are. Positioning, on the other hand, is the perception your brand holds in the market relative to competitors.
For example, branding dictates how you present your company (your logo, messaging, and company values), while positioning defines how customers see you compared to other SaaS companies.
(Want to dive deeper into how positioning differs from your branding? You can pick up some great insight in our "Positioning vs. Messaging vs. Value Propositions: What's the Difference?" post.)
Without exaggerating, poor positioning can be catastrophic for SaaS businesses. If potential customers can’t understand what makes your product unique or valuable, they’re unlikely to become actual customers. That’s less than ideal.
Worse still, unclear positioning can lead to misalignment within your organization. Your sales, marketing, and product teams might struggle to communicate a consistent message, thereby leading to inefficiency and wasted effort across the board.
There are six common positioning strategies that SaaS companies use to differentiate themselves:
Choosing the right strategy depends on your product, market, and customer base. And while it may be tempting to try utilizing all at the same time, doing so sacrifices clarity and simplicity. And speaking of…
Complexity confuses, simplicity sells. Effective SaaS positioning should be clear, concise, and easily understood by your target audience. Period.
Keep in mind that overcomplicating your message makes it harder for prospects to grasp your value. When positioning is simple, it’s easier for your team to communicate and for customers to remember.
Take a step back and ask: Could your company’s positioning be summarized in a single sentence? If not, it might be time to simplify.
At the heart of strong positioning is a deep understanding of your customers. What do they need most? What are their biggest pain points? The better you know your target market, the more accurately you can position your SaaS product to meet their needs.
This insight should guide every aspect of your positioning, from crafting your messaging to choosing which market segments to target. To take it a step further, your customers should be top-of-mind for all SaaS marketing initiatives.
SaaS positioning isn’t about shouting from the rooftops about your product — it’s about speaking to the needs of your target market.
Successful companies focus on the benefits they deliver to customers, rather than just promoting features. This shift in mindset can make a world of difference in how your product resonates with your audience.
Ask yourself: What problems do we solve for our customers? Why does our solution matter to them? This customer-first approach forms the foundation of successful positioning.
A strong positioning statement is an essential tool in any SaaS company's marketing arsenal. It should clearly communicate who your target audience is, what problem your product solves, and why you’re the best solution.
Here’s a simple framework to help guide you:
For example: For mid-sized tech companies struggling with project management, our software provides an easy-to-use, highly customizable platform that increases team productivity by 30%.
(If you’re interested in a positioning statement formula that can make this super easy for your brand, the "Positioning vs. Messaging vs. Value Propositions: What's the Difference?" post has one about a third of the way down.)
When it comes to positioning, understanding the difference between features, benefits, and values is essential. Features are what your product does. Benefits are how those features solve a problem. Values are why that matters to your customer. Focusing on benefits and values — rather than just features — creates a more compelling, customer-centric position.
For example, a feature might be an automated reporting tool. The benefit is that it saves users time, and the value is that it allows them to focus on more strategic work. Benefits and values are what your customers care most about. Features are secondary.
A unique selling proposition (USP) is a statement that basically explains why your particular product is better than the competition’s.
Your USP is an essential part of your positioning. It clearly communicates what makes your product unique and why customers should care. It’s the hook that grabs your audience’s attention and sets you apart from competitors. Make sure your USP is prominent in your brand messaging!
Wondering if your positioning needs help? Here are three red flags. 🚩🚩🚩
Good positioning is clear, concise, and customer-focused. It resonates with the target audience, addressing their needs directly and differentiating your product from the competition.
An oft-cited example of a SaaS company with strong positioning is Slack. Their clear messaging is focused on helping teams work together effortlessly. It’s simple, yet highly effective because the focus is on what the product does for their customers. Remember, your customers are always asking WIIFM (“What’s in it for me?”).
On the flip side, bad positioning is vague and self-centered, leaving customers confused about what the product offers or why it’s different. If a company is all about promoting its technical specs without explaining how those specs solve problems, that’s bad positioning.
One of the biggest mistakes SaaS companies make is trying to appeal to too broad an audience. That’s actually a “cardinal sin” in marketing. A popular saying in our field is, “When you market to everyone, you market to no one.”
In attempting to be everything to everyone, companies dilute their message, making it harder for any specific audience to relate. Poor positioning leaves potential customers confused about what you offer, or why they should even care.
Another common mistake is focusing too much on self-promotion — constantly emphasizing features without communicating how those features translate into benefits for customers. SaaS companies that concentrate solely on their product risk losing sight of the fact that customers care infinitely more about solving their own problems than hearing a long list of features, no matter how amazing those features might be.
When your positioning is clear, it should serve as the north star for your marketing, sales, and product development teams. Every piece of communication should align with your positioning statement, and you should regularly review and refine it to ensure it evolves with the market and your company.
Naturally, the way you position your SaaS company can evolve over time. In the early stages, your focus should be narrow. Target a specific niche where you can establish a strong foothold in the market.
As your company scales, your positioning may broaden to appeal to new customer segments or respond to market changes. However, you must ensure that your core positioning remains clear, regardless of scale. The importance of clarity simply cannot be overstated!
In a highly competitive SaaS market, positioning is everything. It shapes how customers perceive your brand and directly impacts your company’s success. By understanding your audience, focusing on their needs, and crafting a clear, compelling positioning statement, your SaaS company can gain the clarity needed to stand out.
And now that you’ve seen how important positioning is for your company, it’s time to take the next steps:
Refining your own positioning and updating your strategic marketing plan to reflect it.
Want additional guidance for either of those? 1 Bold Step is happy to help. We partner with businesses in a range of industries, including SaaS, to more effectively leverage marketing strategies for greater revenue generation. See what we have to offer for yourself with our strategic marketing plans.