Ever wonder how top B2B SaaS companies carve out their niche and achieve remarkable growth in a crowded market? It’s not just about a great product; it’s about mastering data-driven strategic positioning.
Inovia recently hosted a workshop on Strategic Positioning for Growth with Ellie Victor and Nick Copping, Co-CEOs of ZOOM Marketing, Silicon Valley’s first and longest-lasting positioning agency. The session provided invaluable insights for Inovia portfolio companies aiming to enhance their ecosystem presence and differentiate with real impact.
While all companies, especially those leveraging AI, face the common challenge of distinguishing themselves in a noisy world, strategic positioning can become a powerful growth lever, leading to reduced marketing and advertising costs with clearer messaging for prospects.
IT ALL STARTS WITH OWNING A HILL
To kick off the session, Ellie elaborated on the core concept of marketing as ‘owning a hill,’ which means leading or owning a specific category in the market, allowing a company to set the terms for success. As the leader, you define what’s important within your category, including key features, outcomes, and the business model, to become the standard that customers must consider. Beyond just naming the category, it is also key to define their ‘point that matters,’ i.e. the single reason you will win on that specific hill. This crucial exercise requires both creativity and internal buy-in from the leadership team before proceeding.
Here are three key takeaways from the session that can help your B2B SaaS company define their “hill” and “point that matters”:
1. DON’T FEAR THE “PIGEONHOLE”: EMBRACE IT AS A LAUNCHPAD
The common fear among B2B SaaS leaders is that choosing a specific category will pigeonhole them, limiting future growth. However, Ellie emphasizes that this is a myth.
• The Myth: Once a category is chosen, the market will always pigeonhole a company there, preventing expansion. This notion can create internal friction within leadership teams, where fear of being “stuck” can lead to hesitation in defining a clear market position.
• The Reality: Positioning should be viewed as a launchpad, not a trap. History is replete with examples of tech giants that started in a niche and expanded dramatically: Amazon began by selling books and now launches rockets, Apple evolved from computers, Google from a search engine, Nvidia from gaming software, and Salesforce from CRM. Most recently, ZOOM Marketing client, Snowflake initially defined its hill as “data warehouse built for the cloud,” then as it grew, transformed to “the data cloud,” and then to “the data & AI cloud.”
• Startup Insight: For startups, choosing a narrow initial “hill” is even more crucial. It allows them to build credibility and establish ownership of a specific space before expanding. Owning a hill means setting the terms for success, defining key features, outcomes, and even business models within that category, making your company the standard that customers must consider.
2. DITCH THE “SUGAR HIGH”: FOCUS ON BOLD ACTIONS, NOT JUST BOLD WORDS
It’s tempting to craft marketing messages with “super cool” bold words during internal brainstorms, especially when energy is high. However, these “sugar high” messages often crash upon hitting the customer, eroding trust and being ignored.
• The Myth: Bold marketing necessitates bold words, using superlatives like “world’s fastest,” “smartest,” “easiest,” or “first”. While these sound impressive internally, they often fail to resonate with customers who are inundated with thousands of ads daily and approach new information with skepticism.
• The Reality: Bold marketing is about bold actions. When customers perceive a message as “marketing buzzwords,” it signifies a missed opportunity to build trust. Instead, focus on promises that are radically different and easily testable by your customer. A few examples shared include:
- A customer service client, Neuron7, operating in an industry where 75% first call resolution is considered good, boldly promised 90% first call resolution accuracy; this resonated powerfully because it was a specific, testable claim with a clear action and result.
- TIVO’s original, highly successful positioning was “watch TV on your schedule” – a testable promise that didn’t rely on numbers but offered a tangible benefit.
- A strong promise can also stem from a company’s roots, such as accounting SaaS solution client FloQast’s “built by accountants for accountants,” which resonated deeply with their target audience by acknowledging their pain.
• Start-up Insight: Your message should focus on actions your company takes for the customer or results they can achieve that are so compelling they can’t stop thinking about testing them. It should be easy for customers to measure the promised outcome themselves.
3. TALK AI WITHOUT THE FLUFF: FOCUS ON OUTCOMES, HUMANS, AND GOVERNANCE
With AI dominating discussions, simply stating your product is “AI-powered” or “AI-driven” is no longer enough. Buyers expect AI; it’s table stakes.
• The Myth: Buyers are impressed by AI for AI’s sake. Since COVID, over 90% of ZOOM’s work has involved AI strategies for both established brands and startups.
• The Reality: Buyers are no longer wowed by AI for its own sake; they expect it. Their primary interests revolve around three key aspects:
- The concrete outcomes AI delivers: focus on the results AI enables
- The human’s role in the AI process: focus on how humans still shine.
- How governance is handled: This is a significant concern for buyers and is increasingly scrutinized by investors. Ensuring clarity and transparency about model provenance, data sources, training, and the final decision-making power (human vs. AI) can be a strong differentiator.
• Startup Insights: Your story should redefine the customer’s role in the AI-enhanced landscape, reassuring them and highlighting their continued importance. Be transparent about what your algorithms can do and how your approach may differ from that of competitors. A good test is to remove “AI” from your message; if it’s still compelling, you’re on the right track. Focus on the specific value, outcomes, and the interplay between AI and human expertise.
Strategic positioning is a powerful lever that can directly influence your pipeline, market positioning, and overall perception. We’re committed to supporting our portfolio companies in their journey to defining and refining strategic positioning. For those interested in a deeper dive, please reach out to learn about ZOOM’s offer to Inovia portfolio companies.