What is SaaS Positioning?

Have you ever wondered why, in today’s world, there is saturation in almost any field you pick? If you go by the rules of Saas management experts, they will say to follow the blue-ocean strategy or create a product/service on a problem that is real and widespread.�

But on deeper inspection, you come to the conclusion that there are already multiple products built on that one specific problem, and now it’s difficult to stand out from the rest.

Here comes SaaS positioning to the rescue. With this powerful technique, you can reach the desired place for your company, and this article has all you need to embark on your journey to position your brand in the best way possible.

SaaS Positioning: Introduction

SaaS positioning is an interesting process of telling a story about a special computer service to potential users. It is more than just explaining what the service does. It involves demonstrating how it can actually benefit people. This is a crucial aspect as it sets the service apart from other similar ones and promotes growth.

To achieve this, a company needs to have a deep understanding of its target audience, their problems, and desires. This knowledge will enable the company to focus on how the service solves these problems and makes things better for the users. 

As Jeff Bezos said, “Your brand is what other people say about you when you’re not in the room.” likewise, you must focus on what the masses actually need and get them before anyone else to steer your way up ahead of all the competition around. 

Advantages Of SaaS Positioning

1. Boosting customer loyalty and keeping them coming back for more– Using effective positioning, you can set your customers for greater retention and overall boost customer retention rate and help you create a loyal consumer base for your product.

2. Fast-Track Your Sales Success– Having a clear and well-defined positioning strategy can be a game-changer for your business. By helping your sales team identify and prioritize the right leads it can significantly reduce the length of your sales cycle and ultimately improve your overall sales performance.

3. Raising the product value– With organized SaaS positioning, you can elevate your product’s value in the eyes of customers by demonstrating how your product can solve their problems efficiently. This will raise the value of the product and, in a bigger picture, increase your profit margins.

4. Getting ahead of the rat race-. SaaS positioning is all about communicating the unique value and benefits of your product to your target audience in a way that stands out from your competitors. By focusing on what your users need, highlighting key features, and creating a lasting story, you’ll be able to capture their attention, build trust, and position your brand as a leader in your market. This will ultimately lead to sustained growth and increased market prominence.

5. Optimal Adaptability– SaaS positioning offers the ability to quickly and easily adapt to evolving market trends and customer demands. This ensures that your brand stays relevant and competitive over time, allowing you to maintain a strong foothold in your industry.

April Dunford Model

April Dunford, a renowned positioning expert, has developed a comprehensive model that can take your positioning game to a whole new level. By considering each of these factors, you can create a compelling positioning strategy that resonates with your target audience and differentiates your product from the competition. So, take the time to understand your market and leverage these insights to create a compelling positioning strategy that drives your SaaS product’s growth. Here are the 5 main points from the model:

1. Competitive Alternatives: To create a successful positioning strategy, it’s important to consider your competitors’ strengths and weaknesses. By understanding the competitive alternatives in the market, you can position your product in a way that highlights your unique value proposition and sets you apart.

2. Unique Offerings: Another crucial element of a successful positioning strategy is to understand your product’s unique offerings. This includes the collection of features, capabilities, and benefits that only your product can provide. By knowing your unique offerings, you can create a positioning strategy that showcases your strengths and helps you stand out.

3. Target Audience Persona:To develop a positioning strategy that resonates with your target audience, it’s necessary to create a detailed description of your ideal customer, or the “target audience persona.” This involves understanding your target audience’s needs, goals, challenges, and pain points. By doing so, you can create a positioning strategy that speaks directly to them and addresses their unique requirements.

4. Value Offerings:The overall value that your product delivers to your customers is an essential element of a successful positioning strategy. By taking account of the key benefits and outcomes that your target audience is looking for, you can create a positioning strategy that communicates the value of your product clearly and effectively.

5. Market Category: Finally, it’s important to understand the broader market context in which your product operates, or the “market category.” By understanding the market categories your product fits into, you can create a positioning strategy that places your product in the eyes of the masses and communicates your unique value to the audience on a larger level.

Different types of SaaS Positioning

1. Target Audience-Based Positioning:

This positioning strategy involves tailoring your product to the specific needs of a particular group. For example, you can create software that directly addresses the challenges faced by small businesses. This approach ensures that your product is a perfect fit for their unique requirements, making their lives easier.

2. Price-Based Positioning:

Price-based positioning focuses on highlighting affordability and value. This approach appeals to budget-conscious consumers by providing a wallet-friendly option without compromising on quality. This positioning strategy makes your product accessible to a broader audience.

3. Quality-Based Positioning:

Quality-based positioning is all about emphasizing excellence and superior features. By highlighting top-notch craftsmanship and attention to detail, your product positions itself as a premium choice. This approach attracts customers who prioritize quality over cost. Moreover, you bulletproof yourself from all competition, focusing on improving quality and cutting costs.

4. Differentiation-Based Positioning:

Differentiation-based positioning showcases what makes your product stand out from the competition. This could be innovative features, a distinctive design, or a unique approach. By setting your product apart from similar offerings, you give customers a compelling reason to choose your product. 

5. Convenience-Based Positioning:

Convenience-based positioning strives to make things appear to be with ease and simplicity. This could be a user-friendly interface, hassle-free installation, or seamless integration with other tools. This positioning strategy appeals to busy consumers who value efficiency and convenience. As we all know, simplicity is the highest of any luxury.

6. Customer Service-Based Positioning:

Customer service-based positioning focuses on prioritizing superb support and customer engagement. By offering exceptional customer service, you can create a positive experience that builds trust and loyalty way faster than others. 

This approach positions your product as a partner invested in customer success, enhancing your brand’s reputation. This way, you can play a long-term game, as trust is the secret recipe behind timeless brands.

SaaS Positioning 101: Step-by-step guide to master this skill

Step 1:  Identify their desires, fears, frustrations, wants, and aspirations

When it comes to SaaS positioning, it’s important to identify the desires, fears, frustrations, wants, and aspirations of your target market. For instance, your target market might desire a software solution that can help them automate and streamline their business processes, or they might want a solution that can help them save time and money. 

By understanding these factors, you can position your SaaS offering in a way that addresses your target market’s needs and concerns, making it more appealing and relevant to them.

Step 2: Make reasonable promises

To create an effective positioning strategy for your SaaS product, the first step is to conduct thorough customer research. You can use survey tools like Google Forms, Typeform, and SurveyMonkey to gather data about your target audience, their needs, and pain points. Additionally, you can schedule interviews with your existing customers to collect feedback on your product and understand their experience with it. 

Once you have done your intensive research about your target audience’s desires, wants, and aspirations, make a plan to identify the best possible way to provide solutions to the problems. Then, after speculation, garner trust from your customers by promising them the highest quality work and complete assurance to deliver a product which day always wanted.

Step 3: The Black-Swan Strategy

In this stage, you need to emphasize the things that differentiate your product from the competition. You need to show the audience how you get your results differently. You can stand out from the grey by bringing in constant innovation and asking the consumers what more they want. 

If this step is taken seriously, it has the power to change the whole course of your business with rapid development in the financial sphere. Being the black swan in the lake full of white ones can be a total game-changer for you.

Step 4: The Grand Finale!

Now is the time to finish the sentence “This is why we…”. In doing so, you should specify the desired image you want to create for your product and emphasize the key distinguishing points. 

Finally, complete your positioning statement that sums up the perspective of your brand, which you want others to perceive. This will be your final step in the process of SaaS Positioning and will get you to stellar heights with optimal application.

For a deeper dive into SaaS Positioning

Some books to help you master the positioning game 

1. Obviously Awesome! (April Dunford)

In this title, the SaaS Positioning Guru herself lets you know the secrets of consumer minds and provides deeper insights into the topic with many golden nuggets and many chapters that just literally got saved from being claimed as a piece of forbidden knowledge.

2. Crossing the Chasm (Geoffrey A. Moore)

This text highlights the value of a classic book that explores marketing strategies, including positioning. Although not exclusively about SaaS, it can be particularly useful for SaaS businesses seeking to scale their operations. The book provides insights and guidance on how to market your products or services and achieve long-term success effectively.

3. Positioning: The Battle for Your Mind  (Al Ries and Jack Trout)

This book is a well-known marketing resource that teaches important ideas about “positioning.” These ideas can be helpful for businesses that provide software services and are competing in crowded markets. 

By reading this book, you can learn how to understand your target audience better and give them what they need to be happy. It also explains how to use persuasive tactics to influence the audience’s behaviour effectively.

FAQ’s

1. Do you need to hire a professional for SaaS positioning?

The answers can be both Yes and No, if you are great at finding patterns, can explain the idea well, and can solve problems quickly, then you are good to go on your own.

And, if you fall short of time and have multiple dimensions to look upon, consider hiring an expert.

2. Is SaaS Positioning really hard?

Absolutely not! All you need to do is start asking random people the same question to various people so that you can figure out the flaws in the system and then solve it with efficiency and scalability, and Voila! You have a nig name in the market already.

3. Can I self-learn this skill?

Yes! With the books mentioned earlier, appropriate articles on the web and some worthy podcasts, you can gain tremendous knowledge about this field, which will boost your business and attract a lot of targeted audience.

4. How do we constantly evolve with SaaS positioning?

This is such a topic which you can’t master within a day, rather, continuous practice and daily learning will help you get a tight grip on this life-saving skill. This is one of the most practical skill to gain.