The right message is everything. Even if your product perfectly solves people's problems, if your product positioning doesn't reflect that, your product could fall flat. That’s where a strong product positioning strategy comes in. It’s the foundation for making your product stand out, connect with the target audience, and drive conversion.
So, let's dive into building product positioning strategy that works. We'll cover the basics, share some best practices, as well as mistakes to avoid. Whether you’re a product marketer, product manager, or head of product, this guide will help you take your product to the next level.
What Is a Product Positioning Strategy?
First, the basics. A product positioning strategy is a plan that determines how your product is positioned in the market. It’s how you tell your target customers what your product is, who it’s for, and why it’s better than anything your competitors offer.
Think of it like this: When someone hears about your product, what’s the first thing you want them to think? The answer to that question is your product positioning.
A good product positioning strategy:
- Clearly communicates your product’s value.
- Aligns with your target market’s needs and goals.
- Shapes the perception of your brand in the minds of your target customers.
Let's take Userflow for example. We position our product as a tool that makes user onboarding simple and seamless. That is the core customer need and value that we want to communicate to our target customers.
Why Does Product Positioning Matter?
You could have the best product in the world. You could have the most stunning marketing strategy. But without a clear positioning strategy, your target market won’t see why they should care. In fact, your target customers won't even be aware of your product no matter how precisely your product addresses customer needs. Strong positioning ensures your efforts communicate value and align with your audience’s expectations.
Here’s more on why it matters:
- Connect with your target audience: Positioning helps you reach the right people and show them how your product fits their customer needs.
- Stand out from competitors: A clear strategy highlights what makes your product unique.
- Build trust and loyalty: When people see that your product delivers on its promises, they’re more likely to stick around.
Product Positioning vs. Brand Positioning vs. Market Positioning
There are multiple types of positioning. Understanding the differences and relationships between product positioning, brand positioning, and market positioning is crucial for crafting an effective marketing strategy for your product. Here's a breakdown of each concept:
Product Positioning
Product positioning focuses on how a specific product is perceived in the market relative to competitors. It answers questions like:
- What unique problem does the product solve?
- How does it fulfill customer needs better than alternatives?
- What specific features or benefits make it stand out?
For example, if your product offers the fastest onboarding experience in the SaaS industry, that specific benefit defines your product positioning.
Brand Positioning
Brand positioning refers to how your entire brand is perceived in the minds of consumers. It encompasses the values, personality, and emotional connection associated with your brand. While product positioning is specific to an individual offering, brand positioning is more holistic, shaping how all products under the brand are viewed. This is commonly summed up in a brand positioning statement, otherwise known as a tagline.
For example:
- Apple positions its brand as innovative and premium, influencing how customers perceive products like the iPhone and MacBook.
- Slack’s brand positioning as a simple, efficient communication tool impacts how users view all its features.
A strong brand positioning creates a framework within which individual product positioning strategies can thrive.
Market Positioning
Market positioning looks at your company's overall placement within the broader market or industry. It focuses on understanding where your brand and products fit among competitors and customer preferences. It often involves segmenting the market to identify the most lucrative or underserved opportunities.
Market positioning involves questions such as:
- Are you targeting premium customers or a value-conscious segment?
- Are you positioned as a leader, challenger, or niche player in your industry?
For example:
- Tesla’s market positioning strategy targets the luxury electric vehicle segment, differentiating itself from traditional automotive manufacturers.
- Walmart’s market positioning focuses on low-cost goods for price-sensitive customers.
How They Work Together
One thing to remember is that these different types of positioning are not isolated concepts. They must work in harmony in order for your product positioning efforts to have the maximum effect.
- Product Positioning communicates the value of individual offerings to your target audience, driving customer interest and purchase decisions.
- Brand Positioning shapes customer expectations and emotional connections across all products.
- Market Positioning determines where the brand and its products fit among competitors.
Aligning all three ensures consistency in messaging, improves customer trust, and strengthens your competitive advantage. For example, Userflow positions itself within the SaaS onboarding market as the go-to tool for creating seamless, intuitive user experiences. This product positioning aligns with its brand positioning on simplicity and customer success, while its market positioning targets SaaS companies looking for rapid onboarding solutions.
Core Elements of a Winning Product Positioning Strategy
Now, let's go into what it really takes to build a product positioning strategy that stands out from the rest. Here are the must-have elements:
1. Understand Your Target Market
You can’t position your product if you don’t know who you’re talking to. Start by researching your target audience:
- What are their goals?
- What challenges are they facing?
- How can your product help them?
Creating buyer personas can help. These are fictional profiles of your ideal customers. For example, you might have a persona for “Sarah,” a product manager who values efficiency and wants tools that save her time, or "Alex," a marketing leader focused on competitive advantage and customer retention.
2. Define a Unique Value Proposition
Your value proposition is the promise you make to your audience. It’s what sets your product apart and shows why it’s worth choosing.
Focus on benefits, not just features. For example:
- Feature: “Step-by-step onboarding guides.”
- Benefit: “Get new users comfortable with your product in minutes, not hours.”
A strong value proposition is the backbone of your brand positioning. It helps your product stand out by clearly communicating its benefits.
3. Analyze Competitors
To stand out, you need to know what you’re up against. Look at your competitors and ask:
- What do they do well?
- Where are they falling short?
- What gaps can your product fill?
For example, if a competitor’s onboarding process is overly complex, you can position your product as the simpler, more user-friendly alternative. Use tools like a positioning map to visualize how your product compares to the competition.
4. Craft Clear Product Messaging
Product messaging, or a positioning statement, is how you communicate your positioning to your target audience. It should:
- Be simple and easy to understand.
- Highlight the benefits of your product.
- Stay consistent across all channels, from your website to your email campaigns.
5. Leverage Different Types of Positioning
Different types of positioning can help refine your approach. Here are three that you should focus on:
- Functional Positioning: Highlighting practical benefits like speed or efficiency.
- Emotional Positioning: Connecting with your audience’s feelings or aspirations.
- Value-Based Positioning: Emphasizing cost-effectiveness or high return on investment.
Choosing the right type of positioning ensures your product resonates with your target market.
Steps to Create an Effective Product Positioning Strategy
Now that you know what the building blocks are, let's talk about how to put it all together.
Step 1: Gather Data
Start by collecting insights about your audience and competitors. Use surveys, interviews, and analytics tools to learn:
- What problems your audience is trying to solve.
- How they currently address those problems.
- What they value most in a solution.
This market research ensures your strategy is based on real data, helping you align your approach with customer needs.
Step 2: Define Your Target Audience
Use the data you’ve gathered to identify who your product serves best. Then, segment your target audience into groups with similar needs or behaviors. For example, you might focus on:
- Product managers seeking efficient tools.
- Marketers aiming to improve customer retention.
- Teams needing faster onboarding solutions.
When you understand your target audience, you can craft a positioning statement that speaks directly to their needs.
Step 3: Identify Your Key Differentiators
What makes your product better or different? Focus on aspects that solve your audience’s pain points or offer unique benefits. For example:
- Faster setup time.
- More intuitive interface.
- Better customer support.
Highlighting these differentiators strengthens your positioning and creates a competitive advantage.
Step 4: Create a Positioning Statement
Your positioning statement should summarize your strategy in one or two sentences. It should include:
- Who your product is for.
- What problem it solves.
- How it stands out.
Example: “Userflow helps SaaS companies create seamless onboarding experiences, ensuring users see value quickly and stick around longer.” This brand positioning statement acts as a guide for all your messaging efforts.
Step 5: Test and Refine
Positioning isn’t set in stone. Test your messaging with your target customers and make adjustments based on their feedback. Use A/B testing or perceptual maps to see what resonates.
Refining your strategy ensures it evolves alongside your market’s needs and competitive landscape.
Common Mistakes to Avoid on Product Positioning
History is littered with products that crashed due to mistakes with how they positioned themselves among competitors. Even a product superpower like Microsoft had Zune (anybody remember that?). So here are common mistakes you should keep in mind to avoid going into the graveyard of products.
1. Being Too Broad in Your Messaging
You can't make everyone happy, but yet so many people try. This often results in generic messaging that doesn’t resonate with any specific audience. Focus on your core target market and craft messages that address their unique needs and pain points.
2. Ignoring the Competition
Always keep your eye on your competitors. Without understanding what others are doing, you might miss opportunities to differentiate your product. Competitor analysis helps identify gaps in the market that you can fill. You don't want to be Blackberry on the eve of the smartphone.
3. Inconsistent Messaging
Messaging has to be like a well-sharpened knife. It needs to be able to cut through your competitors and make a clear positioning statement. Mixed messages across different channels confuse your audience and weaken your brand perception. Ensure that your positioning statement is clearly and consistently reflected in all marketing efforts, from ads to product pages.
4. Overloading with Features
Most users are looking to a product for one thing they want, which means highlighting too many features can not only overwhelm your audience, but also dilute the perceived value of the product. Instead, focus on key benefits and the value your product provides. Simplify your messaging to make it clear and impactful.
5. Neglecting Customer Feedback
Your customers are the best source of insight into whether your positioning strategy is effective. Ignoring their feedback can lead to missed opportunities for improvement. Regularly gather and act on user feedback to refine your approach.
6. Not Evolving with the Market
The market is extremely dynamic, and customer needs change over time. Sticking to an outdated positioning strategy can make your product irrelevant. Continuously evaluate and adapt your strategy to stay competitive.
7. Underestimating Emotional Connection
Positioning isn’t just about rational benefits. Ignoring the emotional aspect of branding can weaken your connection with your audience. Consider how your product aligns with their aspirations, values, or lifestyle.
By avoiding these pitfalls, you can create a product positioning strategy that effectively communicates your value, resonates with your audience, and keeps you ahead of the competition.
Crush Your Product Positioning Strategy
With a product positioning strategy that deeply understands your target audience, presents a clear unique value proposition, and stays ahead of market changes, you can ensure that your product will resonate in a competitive landscape. The right positioning strategy doesn’t just set you apart—it unlocks long-term growth by establishing a loyal base of customers who perceive you as an essential product.
In order to test out various different messaging and see what clicks with your target audience, you need a tool that allows you to make easy changes to your product's communication. That's where Userflow can really help you out. With an easy-to-use builder that can create onboarding flows in minutes, you can try out different messaging and quickly see what sticks.
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