In B2B SaaS, brand positioning has become increasingly important.
Clear and differentiated brand positioning makes a huge difference in how prospects perceive a company's product and how customers feel about their purchases and a company’s brand.
Positioning is critical for CFOs looking to make strategic and informed business decisions and smart investments.
They need to appreciate the role of positioning in helping a company’s brand and products stand out in competitive markets and how some of the impacts are quantifiable. At the same time, some are anecdotal but still important.
In this blog post, we will discuss why brand positioning matters to B2B SaaS companies and how it can help shorten sales cycles, engage prospects and differentiate a company's product from the competition.
Shorter Sales Cycles
Anything that adds grit to the sales process is negative in a fast-moving, ultra-competitive landscape. Companies simply can’t afford to put themselves at a disadvantage; otherwise, prospects will have a reason to put them aside and explore other competitive options. And even if a company attracts a customer’s attention, they make sure their narrative makes an impression.
Clear positioning makes it easier for prospects to understand the value quickly, benefits, and ROI of a company's product or service. It is a powerful and necessary reality.
As important, positioning can make it easier for salespeople to move prospects through the sales funnel and close deals faster.
Without clear and differentiated positioning, prospects may struggle to understand why they should choose your product company.
As a result, salespeople may have to spend more time educating prospects on how the product or service works.
CFOs understand that time is money, and by shortening the sales cycle, a company’s salespeople can close deals faster and drive more revenue. It’s business and sales 101.
Positioning matters to B2B companies because it can help salespeople tell more impactful stories to engage prospects.
Powerful narratives highlight how a company's product has helped other businesses succeed, overcome specific challenges and problems and achieve measurable results.
They can help prospects envision the experience that a product delivers and how they could use it to do their jobs or live better. By using stories that resonate, salespeople can show prospects how a product can align with a prospect's needs.
As important, clear and compelling brand positioning can help salespeople connect emotionally with prospects, making building trust and rapport easier. It can lead to more meaningful conversations and better relationships.
Truth be told, many purchase decisions are propelled by emotions rather than logic. Sales are easier and faster if a prospect feels emotionally connected to a product.
Differentiate from competitors
Another benefit of positioning (and one that is absolutely necessary!) is it helps a company and its brand products stand out from the competition.
In a market teeming with competitors, it can be difficult for prospects to differentiate between products with the same prices, benefits and features.
It’s like looking at 50 different ice cream flavours with chocolate as the primary ingredient. Of course, they’re all delicious, but making a decision is really, really hard!
With clear positioning, however, a company can illustrate how its product is different, unique, or better than the competition.
It is important to note that the difference a company highlights doesn’t necessarily need to be significant or dramatic. As long as a company stands apart, that is enough to rally around from a marketing and sales perspective.
Being different allows salespeople to address prospects' objections or concerns and show how the product delivers unique value to their business.
It helps build trust and credibility with prospects and makes it easier for salespeople to close deals.
How to determine positioning ROI
After clear positioning is developed, tested and pollinated, a company can start to quantify its impact are ROI. Here are five ways this can happen:
- It is business 101, but sales growth is the ultimate KPI.
- Customer acquisition cost (CAC). By tracking the cost of acquiring new customers before and after implementing a new positioning strategy, you can calculate the ROI based on the reduction in CAC.
- Customer retention rate (CRR): Strong brand positioning can improve customer loyalty and retention. You can calculate ROI by measuring the difference in retention rates before and after implementing a new positioning strategy.
- By measuring the increase in brand awareness from a new positioning strategy, ROI is calculated by comparing the cost of the strategy with the increased revenue from new customers.
- To demonstrate the value of positioning in a tangible and quantifiable way, case studies, customer testimonials, and industry benchmarks can illustrate how strong positioning has resulted in increased revenue, improved customer loyalty, and reduced customer acquisition costs for similar companies.
By understanding the importance of clear and compelling positioning, businesses can help drive leads and sales for their company. A well-positioned brand can shorten sales cycles, engage prospects, and differentiate a company's product or service.
Brand positioning needs to be a priority for B2B companies because it delivers a rock-solid ROI and drives leads and sales.