How to nail your product positioning | April Dunford (Obviously Awesome)

Understanding B2B Tech Positioning

The Challenge of Evaluating B2B Websites

• Many people seek feedback on their homepage, but the evaluator's perspective may not be relevant unless they are part of the target audience.

• It's crucial for a website to resonate with its intended buyers rather than being understandable to outsiders; if potential customers recognize value, that's what matters.

Importance of Product Positioning

• April Dunford is highlighted as an expert in product positioning, having authored "Obviously Awesome," which is regarded as essential reading in the industry.

• Dunford has extensive experience working with over 200 companies and leading teams at seven successful B2B startups, making her insights particularly valuable.

Insights from Amplitude's Growth Strategy

Amplitude's Evolution

• Amplitude is known for product analytics but is expanding into experimentation and customer data platforms (CDP), reflecting a broader vision of supporting the entire product loop.

• The company focuses on helping customers analyze experiments and leverage segments for outreach, indicating a commitment to growth and learning.

Customer-Centric Approach

• Amplitude aims to meet customers where they are by launching starter templates and offering scholarships for startups, emphasizing support during critical growth phases.

Onboarding Challenges in B2B SaaS

CSV Import Issues

• An estimated 40% of B2B SaaS companies need to import CSV files from customers, with many failing at this task due to unexpected data formats.

• A single bad onboarding experience can lead about one-third of users to consider switching providers, highlighting the importance of flawless data onboarding.

Retention Through Effective Onboarding

• Improving onboarding processes significantly impacts sign-up conversion rates and long-term retention by facilitating quicker access to key product features or "aha moments."

April Dunford’s Journey in Marketing

Background and Early Career

• April shares her journey from studying engineering to becoming a vice president of marketing after successfully repositioning a struggling product early in her career.

Discovering the Importance of Positioning

• Her experiences led her to realize that effective positioning is foundational in marketing; when done correctly, it drives success across products.

Understanding Positioning in B2B Tech Companies

The Speaker's Background and Expertise

• The speaker specializes in positioning, particularly for B2B tech companies, emphasizing their ability to identify and rectify poor positioning during interviews.

• Transitioned to consulting about six years ago, focusing exclusively on tech startups post-Series A/B funding stages.

• Occasionally works with larger companies facing complex positioning challenges due to acquisitions or product integrations.

Experience with Diverse Companies

• Claims to have worked with around 200 companies, suggesting extensive experience in B2B tech positioning.

• Highlights the excitement of exploring new markets through positioning work, sharing experiences from various industries.

Notable Projects and Insights

• Currently collaborating with Epic Games on a groundbreaking product called Twinmotion, showcasing the thrill of learning about unfamiliar technologies.

• Has a background in databases and data analytics but also engages with innovative projects that challenge personal perspectives, such as Blue Light Analytics focused on dental technology.

Understanding Positioning Problems

• Discusses the difficulty of identifying weak positioning without clear metrics; it can affect marketing response rates and sales pipeline efficiency.

• Weak positioning leads to confusion among potential customers, impacting initial sales calls where clarity is crucial for understanding the product offering.

Signs of Poor Positioning

• Suggests that new marketing leaders should engage directly with sales teams to gauge customer understanding during calls.

Understanding Positioning in Marketing

The Importance of Positioning

• Many people misunderstand the value of positioning, often equating it to simple tasks like using a spreadsheet. This indicates weak positioning when potential customers fail to grasp its significance.

• Positioning is a crucial yet often misunderstood concept in marketing, despite being discussed since the 1980s. Different marketing professionals may have varying definitions of it.

Defining Positioning

• Positioning defines how a product uniquely delivers value that a specific group of companies cares about. It includes understanding alternatives, differentiation, and target audience.

• Effective positioning encompasses identifying market categories and defining what makes your product stand out from competitors.

Alignment Across Teams

• Strong positioning should involve all relevant teams—founders, product managers, marketers, salespeople—to ensure alignment on messaging and strategy.

• Misalignment within teams can lead to weak positioning; different departments may interpret the product's value differently, leading to inconsistent messaging.

Collaborative Efforts for Effective Positioning

• To achieve effective positioning, collaboration across various departments is essential. A unified approach ensures everyone understands and communicates the same message.

• Involving key stakeholders such as marketing, sales, customer success, and executives during the positioning exercise fosters agreement and alignment.

Common Challenges in Positioning

• Often misalignment is more problematic than incorrect positioning itself; parts of the company may understand it correctly while others do not.

• Founders frequently face challenges when new team members (like VPs of marketing or sales) do not share their understanding of the market or product position.

Recognizing Successful Positioning

• When effective positioning is achieved, it feels intuitive; stakeholders resonate with the pitch as if it's an obvious solution that meets their needs.

Understanding Effective Positioning in B2B Tech

The Evolution of Postman's Positioning

• The speaker highlights Postman as a favorite company, known for its API platform that simplifies building and using APIs.

• Initially, Postman's self-description was not as clear; their current positioning reflects significant evolution over the past three years.

• Positioning is dynamic and must adapt to changes in products and market conditions; what was once good positioning can become ineffective.

Importance of Regularly Evaluating Positioning

• Regular check-ins on positioning are valuable; it’s essential to assess if the current messaging could be improved or refined.

• Good positioning statements often come from understanding the target audience rather than just internal opinions about the product.

Understanding Your Audience

• For B2B tech companies, it's crucial that messaging resonates with actual buyers rather than being easily understood by outsiders (e.g., grandmothers).

• A successful pitch should excite qualified prospects regardless of whether non-target audiences understand it.

Critique of Conventional Pitch Judging

• The speaker criticizes events like "pitch the grannies," arguing they are poor judges for customer-facing pitches unless targeting that demographic specifically.

Steps to Effective Product Positioning

• Founders and PMs should start by identifying their differentiated value—what unique benefits they offer compared to competitors.

• Gathering opinions from within teams can lead to subjective views; instead, focus on understanding competitive alternatives in the market.

Understanding B2B Positioning Strategies

The Importance of Competitive Positioning

• Companies often create a shortlist of alternatives when considering purchases, necessitating a strong competitive positioning to win deals.

• In B2B sales, approximately 40% of deals are lost to "no decision," which typically means losing out to the status quo or simpler solutions like spreadsheets and pen-and-paper methods.

• It's crucial to not only compete against the status quo but also against other shortlisted alternatives in order to secure a deal.

Differentiating Capabilities

• Identifying unique capabilities that competitors lack is essential for effective positioning; this includes features, pricing, professional services, and product capabilities.

• Mapping these capabilities to customer value helps clarify why customers should care about specific features and what benefits they provide.

Value Themes and Target Customers

• By translating features into value themes, businesses can identify two or three key value buckets that resonate with customers more effectively than generic offerings.

• Understanding the characteristics of target accounts that prioritize certain values leads to defining ideal customer profiles or best-fit customers.

Market Category Contextualization

• Positioning should begin with understanding the unique value offered rather than starting with market categories; this ensures relevance and clarity in messaging.

• The best market category serves as a context where the unique value proposition becomes apparent to potential customers.

Summary of Positioning Steps

• The process begins by identifying competitive alternatives followed by listing differentiated capabilities that set your offering apart from others.

• Next, translate those capabilities into clear customer value themes before determining characteristics of target accounts that align with those values.

Understanding Help Scout's Positioning

Target Audience and Market Position

• Help Scout primarily serves small to medium-sized businesses and direct-to-consumer e-commerce companies, often replacing basic email systems or shared inboxes.

• The platform differentiates itself by offering features that enhance customer service, including a unique shared inbox designed to prevent missed communications and conflicts.

• Unlike competitors like Zendesk, Help Scout assigns customers to specific representatives rather than ticket numbers, fostering a more personal service experience.

Customer Service Philosophy

• Help Scout emphasizes delivering exceptional customer service as a means of building deeper relationships with clients rather than pushing them towards low-cost channels.

• Businesses that prioritize customer loyalty—such as direct-to-consumer brands—are seen as ideal fits for Help Scout’s services compared to companies focused on cost reduction.

Crafting the Sales Narrative

• The next step involves creating a compelling sales narrative that aligns with the understanding of target customers and their needs.

• Modern e-commerce firms view customer success as a growth driver; statistics are used to support this perspective in sales discussions.

Competitive Differentiation

• Help Scout positions itself against alternatives that treat customers merely as numbers, highlighting its commitment to personalized service.

• The narrative contrasts traditional cost-centered approaches with Help Scout's focus on relationship-building through superior customer service.

Collaborative Development of Messaging

• A collaborative workshop is conducted involving various teams (sales, marketing, product development, etc.) to align on positioning and messaging strategies.

• This process includes identifying competition, defining unique value propositions, and determining target markets for effective outreach.

Finalizing the Sales Pitch

• After establishing positioning, it’s crucial for all team members to be able to articulate the story effectively; this ensures consistency across departments.

Understanding Differentiation in B2B Sales

The Importance of Differentiators

• Companies must identify their differentiators to stand out, but there are instances where this focus may not be essential.

• The B2B buying process often starts with a realization of inefficiency, prompting decision-makers to seek new tools like CRM systems.

The Role of the Sales Operations Team

• A sales leader delegates the task of finding a CRM to someone in the office, often leading to panic and uncertainty about available options.

• The search for information can be overwhelming due to the vast number of companies and products listed on platforms like G2 Crowd.

Justifying Choices in CRM Selection

• Decision-makers need to justify their choices to superiors; they cannot simply choose randomly or based on personal preference.

• Effective sales calls should help customers understand how different CRMs fit various needs, guiding them toward informed decisions.

Consequences of Poor Decision-Making

• If customers feel overwhelmed and unable to justify their choice, they may revert to using outdated methods (e.g., spreadsheets), resulting in no decision being made.

• It's crucial for sales teams to assist customers in articulating why they've chosen a particular solution over others.

Articulating Value Propositions

• Simply stating that one product is "better" than another is insufficient; clear articulation of what makes it better is necessary.

• Differentiate by highlighting unique features: simplicity versus complexity or customization versus ease-of-use depending on customer needs.

Positioning vs. Messaging: Key Differences

Understanding Positioning

• Positioning serves as a foundational element that informs messaging; it defines competitive advantages and market standing.

Defining Messaging

• Messaging typically refers to surface-level text (like homepage content), which requires an understanding of target audience and value propositions before it can be effectively crafted.

Distinction Between Positioning and Branding

• Positioning differs from branding; effective branding relies on clear positioning regarding target buyers and differentiation from competitors.

Flow Downstream from Positioning

• Once positioning is established, all marketing efforts should align with this foundation for consistency across communications.

Understanding Positioning in Tech Startups

The Importance of Clear Positioning

• Many new tech companies fail to articulate the value of their innovations, leading to confusion about their target market and application.

• Magic Leap's initial launch showcased impressive technology but lacked clarity on its practical use, raising questions about its market relevance.

• Over time, Magic Leap refined its positioning towards B2B applications, demonstrating a shift from consumer-focused marketing to specific industry solutions.

Case Studies: Magic Leap and Google Glass

• Similar issues were observed with Google Glass; while it generated excitement, the lack of clear use cases hindered widespread adoption initially.

• Both products eventually found niche markets in B2B contexts after recognizing specific applications that provided real value.

The Segway Example: Hype vs. Reality

• The Segway's launch was marked by significant hype around revolutionary transport but ultimately failed due to unclear positioning and user guidance.

• The founder's reluctance to define the product led consumers to speculate wildly about its purpose, resulting in confusion over where and how it should be used.

Lessons Learned from Failed Launches

• Early users faced challenges navigating public spaces with the Segway because there was no consensus on whether it belonged on roads or sidewalks.

• Despite having advanced technology, poor positioning contributed to the Segway’s commercial failure; understanding customer needs is crucial for success.

When Should Companies Seek External Help?

• Companies may benefit from external expertise in positioning when internal attempts have failed or when there's a need for alignment among opinionated team members.

Expert Positioning Strategies

Importance of Expert Involvement

• The speaker emphasizes the significance of bringing in an expert to ensure high-quality outcomes, avoiding the need for multiple revisions.

• Larger companies often seek experts as a "security blanket," feeling more confident in their projects with professional guidance.

Process Duration and Methodology

• The typical process involves a week-long sprint, including preparatory work and follow-up sessions, although some companies manage it in just a few days.

• The time required can vary based on team alignment and agreement; consensus is crucial before concluding the exercise.

Target Audience for Positioning Exercises

• The speaker works primarily with companies generating around $5 million to $10 million in revenue, which are beyond seed stage but not yet large enterprises.

• Early-stage companies may not be ready for intensive positioning exercises due to insufficient data or customer feedback.

Developing a Positioning Thesis

• Companies should create a positioning thesis that outlines competition, differentiation, value delivery, and target market expectations.

• This thesis serves as an internal alignment tool but is often based on assumptions that require validation through market interaction.

Flexibility in Early Positioning

• The speaker suggests keeping positioning flexible during early product stages to adapt based on market feedback rather than rigidly adhering to initial assumptions.

• An analogy is made comparing product launch strategies to fishing nets designed for specific fish types; flexibility allows discovery of unexpected markets.

Transition from Loose to Tight Positioning

• Recognizing when to tighten positioning involves observing patterns among customers rather than isolated successes across diverse segments.

Understanding Marketing Automation and Segmentation

Insights on Marketing Automation Tools

• The speaker reflects on the commonality of marketing automation tools, noting that many have similar sales team structures.

• Recognizing patterns in successful pitches allows marketers to focus their efforts effectively, leading to better outcomes when specific conditions are met.

Importance of Audience Engagement

• The speaker shares excitement about being recognized in a meetup for an upcoming podcast, highlighting the value of community engagement.

• A discussion arises regarding how startups should approach marketing strategies, emphasizing the need for tailored insights.

Differentiating Segmentation and Personas

• The conversation shifts to clarify the difference between market segmentation and buyer personas, pointing out confusion among marketers.

• The speaker critiques marketing education's consumer-oriented focus, which can lead to misunderstandings about these concepts.

Market Segmentation Explained

• Market segmentation involves dividing a market based on various criteria; for example, targeting toothpaste at specific demographics like young men.

• Personas represent detailed profiles of buyers that capture their motivations and characteristics beyond mere demographics.

B2B Market Dynamics

• In B2B contexts, segmentation often relies on firmographics such as company size and revenue rather than individual characteristics.

• Effective segmentation can be highly actionable; identifying companies with specific needs allows targeted marketing efforts.

Role of Personas in B2B Sales Processes

• Understanding company characteristics is crucial for developing go-to-market strategies that resonate with target audiences.

Understanding the Role of Personas in Marketing

The Complexity of Decision-Making in Purchases

• In purchasing decisions, multiple stakeholders are involved, including departments like purchasing and legal, as well as security personnel. This can lead to a group of five to seven people influencing the deal.

Misguided Persona Development

• Marketing teams often create detailed personas for each stakeholder, such as "Eric the IT person" or "Janet the sales rep," which may oversimplify their roles and preferences.

The Importance of the Champion Persona

• The actual decision-making process is driven by a key individual—referred to as the "champion"—who navigates through research and vendor interactions before involving others.

• This champion's role is crucial because they must gain consensus among all stakeholders, including their boss who ultimately approves financial expenditures.

Positioning Strategies for Success

• Effective marketing positioning must resonate with this champion; failing to do so means not even making it onto a shortlist for consideration.

• Marketers should focus on empowering this champion persona with tools and information that enable them to advocate effectively for their product across various departments.

Critique of Traditional Persona Approaches

• Creating numerous superficial personas is deemed ineffective; instead, marketers should prioritize understanding and supporting the champion persona since they play a pivotal role in driving deals forward.

• The discussion emphasizes that if marketing fails to connect with this champion persona, all other efforts become irrelevant.

Engagement and Interaction on Social Media

Finding Resources and Contact Information

• April Dunford’s book titled Obviously Awesome is available online along with an audiobook version. Her website is aprildenford.com where she can be contacted.

Value of Twitter Interactions

• April appreciates engaging discussions on Twitter that help clarify her thoughts. She values constructive criticism over mere agreement from followers.

Encouraging Thoughtful Dialogue

• Unlike LinkedIn, Twitter allows for more candid feedback on ideas, which helps refine thinking processes. April encourages followers to challenge her ideas constructively.

Building a Community of Thinkers

• April enjoys having an engaged audience on Twitter who are interested in deeper discussions rather than just affirmations about her views.

Conclusion: Learning from Discussions

Final Thoughts