Content is king
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If you’ve ever wondered why your SaaS product isn’t getting the traction you expected, the answer might be simpler than you think. It’s not always about features, pricing, or even the competition—it often comes down to positioning.
Positioning is the backbone of how your customers perceive your product. Nail it, and you’ll resonate with the right audience, reduce churn, and create a competitive edge. Get it wrong, and no matter how great your solution is, it’ll struggle to gain the attention and adoption it deserves.
In this blog, I’ll break down what SaaS positioning is, why it’s so critical, and how to create a framework that sets your business apart. Plus, I’ve included a free survey template with 20 questions I use when working with new B2B SaaS marketing teams to refine their positioning and messaging.
Positioning is often misunderstood as a one-and-done exercise or just a catchy tagline. But in reality, it’s a foundational strategy that shapes how your SaaS product is perceived, valued, and adopted in the market.
Let’s break it down further and explore what positioning means.
At its core, SaaS positioning is the strategic process of defining how your product is perceived in the market. You’re carving out a space in your audience’s mind and ensuring your solution is synonymous with solving a specific problem for a specific customer segment.
But here’s the thing: Positioning isn’t what you say it is—it’s what your customers believe it is. It’s the result of their experiences, your messaging, and the broader market narrative.
Think of it as your product’s place in the market and your customer’s mind. It answers the question:
“Why should this specific customer choose our SaaS product over any other?”
Let me clear up a common misconception: Positioning and value proposition are not the same things.
Your value proposition is about what your product does and the benefits it delivers. It’s often used in messaging and sales to convince prospects of your solution’s value.
Positioning, on the other hand, is much broader. It’s about your product’s role in the market, the unique space it occupies, and how it stacks up against competitors.
While your value proposition is tactical, positioning is strategic. One informs the other, but they serve different purposes.
Good positioning isn’t a luxury only big brands can afford—it’s a necessity from your startup stage. Here’s why:
Without strong positioning, even the best product can feel like just another option.
To build compelling SaaS positioning, you need a few key components:
If you can articulate these elements clearly, you’re already on your way to strong positioning.
Great SaaS positioning feels natural, almost as if it’s the only way to describe your product. But behind that simplicity lies a strategic approach that aligns every touchpoint—your messaging, visuals, product features, and customer interactions.
Exceptional SaaS positioning speaks directly to your target audience’s pain points and aspirations. It creates clarity in a crowded market, and makes it obvious why your product is the right choice. And most importantly, it’s not confined to your website copy—it’s embedded in your product design, pricing strategy, and even your sales conversations.
Positioning is never one-size-fits-all.
Your strategy must reflect your product’s unique value, your ICP’s needs, and the your competitive landscape. Let’s break down the most common SaaS positioning strategies and when to use them:
This strategy puts your customer’s pain points and goals at the center of your narrative. It’s about the transformation your product enables.
For example, if your SaaS offers streamlined payroll management, the messaging might focus on saving HR teams time and reducing errors. Customer-centric positioning resonates deeply because it speaks directly to the challenges your audience cares most about.
In crowded markets, it can be effective to define your value by contrasting it with a competitor’s weaknesses.
For instance, you might position your product as a more user-friendly or affordable alternative to the market leader. This approach works best when it has notable gaps or when you can carve out a distinct and relatable identity that sets you apart.
Category leadership is about either creating a new niche or becoming the definitive choice in an emerging market. If your product tackles a problem no one else has addressed, you have the opportunity to define the rules of the game.
Alternatively, if you’re entering a niche, positioning yourself as the expert or innovator in that space builds credibility and trust.
Highlighting specific features or capabilities can be a strong approach when your product has clear, measurable advantages.
This is particularly effective for highly technical audiences or when you’re solving a very niche problem. However, feature-based positioning can fall flat if those features don’t directly tie to a significant customer benefit.
The best positioning strategy depends on where you are in your growth journey, your ICP’s priorities, and the competition.
A startup entering a saturated market might lean on customer-centric or competitor-based positioning to stand out. An established SaaS company breaking into a new vertical could benefit from category leadership.
Regardless of the approach, your positioning must always be rooted in authenticity and aligned with your broader business goals.
Spotting a positioning problem isn’t always straightforward, but it becomes evident when your growth efforts don’t deliver the results you expect. If your marketing feels scattered or your sales cycles drag on endlessly, it’s often a symptom of unclear or ineffective positioning.
Here are some telltale signs you might have a SaaS positioning issue:
If any of this sounds familiar, it’s time to reevaluate your positioning.
A well-crafted positioning framework is your SaaS company’s North Star. It guides every marketing campaign, sales pitch, and product development decision. It also creates alignment across teams and ensures your messaging resonates with your target audience.
But building this framework requires a deep understanding of your market, customers, and competitive landscape.
Here’s how to build a powerful SaaS positioning framework:
1. Start with your Ideal Customer Profile (ICP).
Who are you trying to reach? Your ICP isn’t just a demographic sketch—it’s a detailed profile that includes industry, company size, key decision-makers, and, most importantly, the specific challenges your audience faces. A precise ICP allows you to create messaging that hits the mark every time.
2. Define your product’s primary benefit.
What is the most significant value your product delivers? This should be a single, clear statement that captures why your solution matters to your customers. For example, are you saving them time, reducing costs, or improving efficiency? The answer becomes the foundation of your messaging.
3. Highlight your differentiators.
What sets your product apart from competitors? This could be a unique feature, your go-to-market approach, or even your customer experience. Remember, your differentiators must be meaningful to your audience—not just a list of features they won’t care about.
4. Pinpoint the pain points you solve.
Dive deep into your customers’ challenges and articulate how your product alleviates them. Your framework should clearly answer, “What’s in it for me?” from the customer’s perspective. The more specific you are, the stronger your positioning will be.
Once these elements are in place, validate your framework through customer feedback and competitive analysis. Ensure it’s clear, consistent, and actionable across all touchpoints—from your website copy to your sales decks.
Ready to take the next step? Use our SaaS Positioning Survey Template to put these principles into action and build a framework tailored to your business needs.
This is a survey example that I often use when I start work with a new B2B SaaS Marketing team. It quickly helps get started with positioning, messaging and content marketing opportunities.
Feel free to make a copy and update it for your own usage.
Your team’s answers to these questions will help drive company strategy and marketing messaging. View and make a copy by filling in the below form:
At Kalungi, we specialize in helping B2B SaaS companies like yours unlock their growth potential through clear, compelling, and effective positioning. Whether you’re refining your message, entering new markets, or facing tough competition, our team is here to guide you every step of the way.
Book a free discovery call today and see how we can help you scale smarter and faster.
Stijn is Kalungi's co-founder and board member. He is a serial SaaS marketing executive and has over 30 years of experience working in software marketing. He is co-author of the T2D3 book and masterclass that helps startups drive exponential growth.
Content is King. Every Startup Executive should be a Publisher. Write. Revise. Edit. Publish. Learn.
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