When you’re a small SaaS company, it can be hard to stand out. With so many competitors, how do you position your SaaS against them?
The answer is: you have to be different.
You have to find a way to highlight what makes you unique. Let’s talk about how to do that.
1. Create a unique selling proposition
A unique selling proposition (USP) is a statement that answers the question, “Why should I choose your product over your competitor’s product?” It’s a succinct way to communicate what makes your SaaS unique and valuable to your target audience.
Your USP should be clear, specific, and focused on the most important benefit of your SaaS. It should also be easy to understand and remember.
To create an effective USP, start by identifying the main pain points your target audience is experiencing. Then, think about how your SaaS can solve those problems in a way that no other product can. Finally, distill your answer down to a single sentence that communicates the most important benefit of your SaaS.
2. Know your ideal customer
In order to position your SaaS, you need to know who your competitors are. In order to know who your competitors are, you need to know who your ideal customer is.
Your ideal customer is the person or business that has the highest need for your product or service, the most to gain, and is the most likely to buy. They are also the people who are most likely to be using your competitors’ products. Softwares like Clay can help you do auto-ICP filtering thanks to AI.
In order to position your SaaS effectively, you need to get inside the head of your ideal customer and understand what they are looking for in a product like yours.
3. Understand the competition
You can’t position yourself against your competitors if you don’t know who they are or what they’re up to.
Understanding the competition is an important part of any marketing strategy, but it’s especially crucial when you’re trying to position your SaaS against them.
Start by creating a list of your top competitors. Then, take a look at their websites, social media profiles, and any other online content they’ve created. This will give you a good idea of what they’re saying about themselves, and how they’re positioning themselves in the market.
You should also take a look at their customer reviews and testimonials. This will give you an idea of how their customers perceive them, and what they’re doing right (or wrong).
Finally, take a look at their pricing. This will give you an idea of how you stack up against them, and whether or not you need to make any adjustments.
4. Create a SWOT analysis
A SWOT analysis is a great way to evaluate your own business. But, it can also be used to evaluate your competitors. This can help you see where they may be falling short and where you can improve your own business.
To create a SWOT analysis of your competitors, list out their strengths, weaknesses, opportunities, and threats. Then, compare these to your own business. This will help you identify areas where you can position your business against your competitors.
For example, if your competitor has a weakness in their customer service, you can make it a strength in your own business. Or, if there is a threat to your competitor’s business, you can find a way to make it a strength in your own.
5. Use the right pricing strategy
Pricing is one of the most important factors that customers consider when evaluating SaaS solutions, so it’s crucial to get your pricing strategy right. There are many different pricing models you can use for your SaaS, including freemium, free trial, pay-as-you-go, tiered, and usage-based pricing.
The pricing model you choose should be based on your target market and your customers’ preferences. For example, if your SaaS is targeted at small businesses, a tiered pricing model that offers different levels of service at different price points may be the best option. If your SaaS is targeted at enterprise customers, a usage-based pricing model may be more appropriate.
It’s also important to consider your competitors’ pricing when setting your own pricing. If your SaaS is priced too high, you may lose customers to competitors. If it’s priced too low, you may leave money on the table.
6. Create a compelling brand story
Your brand story is your SaaS business’ personality. It’s what makes your business unique and helps you stand out from the competition.
A brand story is a narrative that encompasses the history of your business, its mission and values, and the problems it seeks to solve. It’s the foundation of your brand and should be communicated across all of your marketing channels.
When creating a brand story, think about the following questions:
• What inspired you to start your business?
• What problem are you trying to solve with your product?
• What are the core values of your business?
• What is your mission as a business?
Your brand story should be authentic and compelling. It should connect with your target audience and make them want to learn more about your business and what you have to offer.
7. Be the thought leader in your niche
When you think of a leader, you think of someone who’s out in front, not following behind. The same is true for companies. If you want to be seen as the leader in your niche, you need to be the one setting the trends, not following them.
This means you need to be the one creating the content that others in your industry are reading and sharing. You need to be the one speaking at industry conferences and webinars. And you need to be the one who’s quoted in the media or emails.
Being the thought leader in your niche doesn’t happen overnight, but it’s something you can work toward. Start by creating a content marketing plan that positions your SaaS as the expert in your industry.
8. Use social proof
Social proof is a powerful tool that can help you build trust with potential customers and position your SaaS against competitors.
Social proof can come in many forms, including customer testimonials, case studies, and online reviews. You can also use social proof from industry experts and influencers to help position your SaaS.
The key is to make sure that the social proof you use is relevant to your target audience and that it is authentic. If potential customers feel like you are using fake data or irrelevant social proof, it can actually hurt your business.
9. Focus on customer satisfaction
The best way to show potential customers you have a great product is to let your current customers do the talking. In fact, 92% of people trust a recommendation from a peer, and 70% trust a recommendation from someone they don’t even know.
Customer testimonials, reviews, and case studies are great ways to build trust with potential customers. You can also create customer success stories and share them on your website and social media profiles.
Focusing on customer satisfaction can help you stand out from your competitors and attract new customers. After all, the more satisfied your customers are, the more likely they are to recommend your product to others.
10. Leverage referral programs to amplify your growth
Referral programs are a powerful way to differentiate your SaaS and boost customer acquisition by turning your satisfied users into advocates. Using tools like ReferralCandy, you can automate and scale referral incentives, encouraging your existing customers to share your product with their networks.
Referral programs not only generate high-quality leads but also build trust more effectively than traditional ads because recommendations come from real users. When combined with your overall marketing and sales strategies, referrals help you create a sustainable competitive advantage.
By integrating referral programs into your positioning, you highlight your commitment to customer satisfaction and community building — qualities that resonate strongly with SaaS buyers. Plus, referrals often have higher lifetime value and lower acquisition costs, making them a smart differentiator in a crowded market.
Conclusion
Positioning your SaaS business against competitors is important to ensure you can continue to grow and succeed. By focusing on your unique features and benefits, you can differentiate yourself and attract new customers.
