We all have a general idea of positioning, but are we fully aware of how to do it properly? That's a different story. As a founder or marketer, you're often so close to your product that it's hard to see it like the market does. You know its strengths inside out, but what if the outside world sees something entirely different?
With just a few taps on my smartphone, I can access over 2 million apps. Dive into Amazon, and you're looking at nearly 580 million products. We're bombarded with ads, logos, and messages everywhere we turn - far more than we could have imagined during the days of cassette tapes and Walkmans. Clear positioning was a must back then; today, it's critical. Without it, you're setting yourself up to struggle.
So, what happens when your positioning isn't working? The signs are usually there if you know where to look. Maybe your current customers love what you offer, but new prospects seem confused.
Perhaps you spend too much time explaining what you do instead of closing deals. Or maybe your leads misunderstand your value and move on. When you're not clear about your positioning, your market will make assumptions for you—and those assumptions might misrepresent your strengths, dilute your value, or bury your product in noise.
When someone encounters a new product, they start piecing together a story about it. Who's it for? Why does it matter? What does it do? Your messaging, pricing, features, branding, and even your partnerships contribute to that context. And if you're not deliberately setting the stage, the market will do it for you.
The sheer number of competing products is staggering. With so much noise, it's easy for your offering to be misunderstood, overlooked, or worse, dismissed as unremarkable. And while we all know that context matters, many assume it’s obvious. Spoiler: it's not.
It's easy to fall into the trap of thinking, "Our product is what it is. Its value speaks for itself." However, the journey from concept to customer rarely follows a straight line. Without clear, deliberate positioning, your product risks getting lost in the shuffle or framed in ways that don't do it justice.
And positioning isn't just about the headline on your website or the pitch you deliver in meetings. It's the foundation of how you show up in the market. It shapes how you talk to customers, price your offering, and even prioritize features.
If you're facing challenges like:
- New prospects don't understand what you're offering.
- Sales cycles feel unnecessarily long, with low, close rates.
- Customers leave too soon or request "off-the-wall” features.
- People constantly push back on pricing, saying it's too high.
Then, it's time to examine your positioning more closely. By revisiting the process, you can turn these obstacles into opportunities and set the stage for success.
In this article, I want to share a practical exercise that you can run with your team—a two-hour brainstorming session or workshop. It's designed to help you refine your positioning in a collaborative, creative, and, most importantly, productive way.
This isn't about getting everything perfect right away. The goal is to be honest, open, and willing to explore as many ideas as possible. Start with the core questions I'll outline, but don't be surprised if the discussion evolves. These sessions often take on a life of their own, with new and unexpected insights emerging as you dive deeper.
It might help to choose a facilitator, someone who can keep things on track, help untangle moments of overwhelm, and recognize when it's time for a pause. A good facilitator ensures that the energy stays focused and that the session moves forward, even when the team hits a tricky point or information overload.
From my experience, these sessions can lead to outcomes utterly different from where you started—and that's a good thing! I've even worked with a startup that, after a few such workshops, realized its product name no longer reflected its vision. What began as a positioning exercise turned into a complete rebrand, transforming how it presented itself to the world.
The Positioning Canvas
1. Problem Space - define the pain points your product addresses.
The Problem Space is where it all begins. This step ensures your messaging feels relevant and relatable to your customers. Without this foundation, it's easy to end up with vague statements that don't stick. But when you define the problem well, everything else becomes sharper and more impactful. Ask yourself:
What problem are we solving?
Be specific because broad descriptions like "inefficiency" or "poor performance" won't resonate. Instead, emphasize on real-world frustrations that your audience can immediately recognize. Try to describe the problem in the same way your customers would. Talk to them, review their feedback, and capture their language.
Example: Instead of saying, "We address inefficiencies," you might say, "We eliminate the hours teams spend manually organizing data for reports."
Who experiences this problem most deeply (target audience)?
To position your product effectively, you need to know exactly who you're solving this problem for. Pinpoint the people or businesses that feel this pain the most. This means narrowing down to a specific group or persona. Think about their roles, industries, and situations. The more specific you are, the better your messaging will connect.
Example: Rather than aiming at "all SaaS companies," focus on "growth-stage SaaS startups that need better reporting to support scaling their teams."
Why is this problem urgent to solve right now?
Timing matters. If your audience doesn't see this as a pressing issue, they're less likely to take action. Tie the problem to trends, challenges, or risks they face. Highlight the consequences of not addressing the issue. What opportunities might they miss? What risks could they face?
Example: “With customers increasingly demanding real-time insights, teams relying on outdated manual processes risk falling behind more agile competitors”.
Take a few minutes to jot down your answers to these questions. Keep it simple. This exercise isn't about getting everything perfect but about uncovering fresh insights. You might even find that this process sparks new ideas or highlights gaps that need attention.
2. Unique Value Proposition (UVP) - define what sets your SaaS solution apart.
Your UVP is what makes your product stand out. It's the answer to the question, "Why should someone choose this over everything else?" By defining what sets your solution apart, you'll be able to connect with your audience in a way that feels personal, relevant, and meaningful. Ask yourself:
What makes our solution one-of-a-kind?
What's unique about your product? What do you offer that no one else does? Focus on what makes your solution feel fresh. Instead of listing all your features, hone in on the one or two things that are genuinely different.
Example: "Our platform delivers instant insights using AI-powered analytics, designed for everyone—even users with no technical background."
How do we solve the problem better than competitors?
Think about what makes your approach unique or more effective. Maybe it's faster, easier to use, or offers something your competitors can't match. Be clear and specific. Instead of broad claims like "easiest to use," explain how your product makes life easier.
Example: "Unlike other tools, our dashboards are ready to use immediately—no manual setup required—so your team can hit the ground running."
What's the big promise we're making?
This is the ultimate "what's in it for me" moment. What transformation can your customers expect once they start using your product? Focus on the end results that matter most to them. Keep it simple and outcome-driven. Consider benefits your audience cares about, like saving time or improving results.
Example: "We’ll help you save hours every week, cut down on errors, and make smarter decisions with real-time data at your fingertips."
When done right, your UVP tells a story that starts with understanding your customers' challenges and ends with showing them a better future that only your product can provide.
3. Core Differentiators - list 3-5 key features or benefits that highlight your product’s strengths.
Your core differentiators are the highlights you want your customers to remember - what makes your product valuable and essential.
How to Define Your Core Differentiators
Focus on Features That Shine
Start by listing a few of your product's standout features or capabilities. These elements make it unique - things your audience will value and competitors might not offer. Ask yourself, "What's the one thing about our product that would make our customers say, 'Wow, I need this'?"
Example:
- Real-time dashboards
- AI-driven insights
- No-code setup
Connect Features to Benefits
Don't stop at features - take it one step further. Pair each feature with the specific benefit it provides to your customer. What problem does it solve, or what positive impact does it create? This step translates your product's capabilities into value for the user.
Example:
- Real-time dashboards → Faster decision-making
- AI-driven insights → Actionable data without manual work
- No-code setup → Easy implementation for teams.
Your core differentiators are your product's strongest selling points. They help customers quickly understand why your solution is worth their time and investment.
Here's an easy way to identify your differentiators:
- List your product’s top features—aim for five or fewer.
- Match each feature with a benefit that shows why it's valuable.
- Narrow it down to the most compelling pairings. These are your core differentiators.
Examples in Practice
Let's see how this works in action:
Feature: Real-time dashboards
Benefit: Faster decision-making
Why it matters: Customers can quickly respond to changes with up-to-date information.
Feature: AI-driven insights
Benefit: Actionable data without manual work
Why it matters: Your product saves time by automating complex analysis, making life easier for busy teams.
Feature: No-code setup
Benefit: Easy implementation for teams
Why it matters: Teams can start using your product immediately—no special skills are required.
4. Competitor Positioning - identify how you stand out in the competitive landscape.
This step helps you highlight your strengths and demonstrate how you solve your audience's problems better than the competition.
How to Approach Competitor Analysis
Identify Key Competitors
Think of competitors your audience would mention in the same conversation as your product. Start by listing the main alternatives your target audience might consider. These are the products or services they're already using or exploring as options.
Understand Their Weaknesses
Take a closer look at where these competitors struggle. Maybe their product is hard to use, too expensive, or lacks flexibility. Identifying these weaknesses allows you to show how your solution fills the gaps.
- Examples:
- Competitor A: Complex setup process
- Competitor B: High cost for small teams
- Competitor C: Limited customizability
Highlight Your Strengths
Connect every weakness you identify to a strength your product offers. This helps you communicate why your solution is a better fit. Focus on what makes your product easier, faster, or more effective for your target customers.
When potential customers compare options, they need to understand quickly why your product stands out. You make their decision easier by focusing on the areas where your competitors fall short and pairing that with your product's strengths. This isn't about speaking negatively about others - it's about helping your audience see why your product is the right choice for their needs.
5. Go-To-Market Messaging - create clear and actionable messaging for your audience.
Your messaging should cut straight to the chase - tell people what you're offering and why it matters to them, no fluff needed. Strong go-to-market messaging should communicate your product’s value and highlight how it addresses your audience's key pain points.
Key Components of Effective Go-To-Market Messaging
Elevator Pitch
An elevator pitch is a concise, clear statement that captures the essence of your product and its solution. It should be easy to understand, engaging, and tailored to your target audience. This pitch should convey how your product improves your customer's life in just a few sentences.
Example: We help SaaS startups save time and make smarter decisions with real-time, no-code analytics dashboards.
This pitch communicates the main benefits - saving time and making better decisions - while stating the product's key features (real-time, no-code dashboards). It's short, direct, and speaks to the target audience.
TaglineCreate a tagline that's like a tweet-sized promise to your customers - memorable, meaningful, and impossible to forget.
Example: Insights at the speed of your business.
This tagline is simple and easy to remember. It highlights the product's benefit - quick insights - and ties it to a key business goal: fast, informed decision-making. It's a promise that speaks directly to the urgency of business needs.
Value-Based Messaging Pillars
Think of messaging pillars as your product's greatest hits - they're the key benefits that make your customers' lives better. Each pillar tells a different part of your story, showing a specific way your product makes their lives easier or better.
Example:
- Get real-time insights effortlessly.
- Focus on decisions, not data wrangling.
- Affordable analytics for every team.
When you take the time to refine your messaging, you give your audience a reason to believe in your product, making it easier for them to trust your brand and take action.
6. Call-to-Action (CTA) - define next steps for potential customers.
A CTA is your opportunity to guide potential customers on the next steps. It's the step that helps move them from interest to taking action, whether signing up for a trial, booking a demo, or joining your newsletter.
Website CTA
When someone visits your website, they often look for a simple next step to get started with your product. A good website CTA makes it easy for them to take that step, whether signing up for a trial or learning more. It's all about removing friction and making the action clear and straightforward.
Example:
Start your free trial today.
This CTA offers no barriers to entry - prospects can try your product at no cost, helping them experience its value firsthand. It's straightforward and focused on the immediate next step.
Demo CTA
Let potential customers take your product for a test drive! Make your demo invitation feel like an exciting opportunity, not a sales pitch.
Example:Book a live demo with our experts.Make it personal - let prospects know they can talk to real experts who understand their world. It feels more like getting advice from a trusted guide than going through a standard sales process.
Newsletter CTA
For people who aren't yet ready to commit to a trial or demo but still want to stay connected, a newsletter CTA offers a way to keep them engaged. It's about providing valuable, helpful content that builds trust and keeps your brand top of mind.
Example:Sign up for actionable analytics tips.
Start by sharing practical tips your prospects can put to work today - it's an easy way to show you're here to help. Then, match your call-to-action to where your audience is - whether they're browsing or ready to get serious. It's like being a good host who knows exactly when to offer coffee, give the full house tour, or share the Wi-Fi password.
The Positioning Canvas in Action: Grain, the AI Notetaker
Let's take Grain, an AI-powered meeting recorder and notetaking tool, and break down their positioning using the canvas.
Problem Space
Unique Value Proposition
Core Differentiators
Competitor Positioning
Go-To-Market Messaging
Call-to-Action (CTA)
Consider this positioning work your strategic blueprint - it doesn't need to be perfectly worded yet. Hand these insights to your copywriter, and they'll transform them into messaging that captures your brand's personality.
Here's a peek at how Grain's positioning came together after following these steps:
On a Final Note
This isn't just a one-and-done exercise - your marketing compass points true north for every piece of content you create. From landing pages to sales pitches, it helps your team speak the same language.
I've laid out a simple framework here that'll help you polish your message, highlight what makes you special, and show why you're the best choice for your customers.
So block off a couple of hours with your team, grab a coffee, and work through these exercises together. It's amazing what fresh perspectives and collaborative thinking can uncover.
