Positioning: A Competitive Breakthrough
SaaS companies are no longer unique and most of these companies have lots of SaaS competitors with similar services, This makes it difficult to break out and get attention.
Getting attention is similar to the problem in the ‘70s and ‘80s when getting through the media noise almost impossible. Marketing ROIs were getting expensive. Then, JackTrout wrote a book about “Positioning.” The idea of positioning is to find and take a unique position in the customer’s mind. For example, there were many car rental companies at that time, all fighting each other. Hertz was the acknowledged leader. Avis realized that service was an essential outcome people wanted, so they positioned themselves as being #2, so “We Try Harder,” which propelled them into number 2 and above the crowd.
Many SaaS companies are facing that same competitive environment today. Therefore it’s time to take a look at your competitive position.
In an article by Yasmine de Aranda, from Martet8, she stated you have to ask the key question, “Why should a prospect choose you over the competitors”? You need a compelling reason for them to buy from you. Remember, they don’t care about your awesome company until they care about what you can do for them.
The following are some questions you need to create your positioning statement.
1 What data collection and monitoring procedures have you designed to help you get and analyze customer information? Don’t rely on your instincts to generalizations. You will need this data to help you test, adjust and validate your assumptions as you create your positioning statement.
2 Get a detailed understanding of your customers and the outcomes they want. What different outcomes do they want? Have they tried alternative solutions? What concerns do they have? With this kind of data, you can begin to profile the customers you want.
3 Look at your competitors through your customer’s eyes. Look at both competitors and indirect competitors. Look at their positioning and strategy. What outcomes, if any, are they touting?
4 Measure your positioning strategy by sales results. For example, the number of leads per month, the number of qualified leads per month, the time to close, churn rate changes, the average cost to acquire customers and average lifetime value.
Don’t just write down the answers. Ask your customers for the answers. The right position will get you increased responses and conversions, a shorter buying cycle, higher retention, and scalability.