The CFO's Guide to Brand Positioning

Note: I'm launching a new, cohort-based brand positioning course on May 16 at noon EST.

Clear positioning is a no-brainer if you want to drive more leads and sales.

The course consists of five weekly, one-hour sessions. It's a do-as-you-learn course. At $299, it's a great deal, and I'll kick in a 20% discount using the code "20OFF".

More info here: maven.com/mark-evans/brand-positioning.

And now to the post:

In B2B SaaS, brand positioning has become more important than ever.

Amid challenging economic times, it’s hard for companies to attract prospects. The rising tide that lifted all ships a few years ago has disappeared.

As a result, companies are scrambling to drive growth. While tactical execution makes a difference, it’s brute force marketing.

But here’s the reality: a company’s marketing can spin its wheels, regardless of how much money is spent, if its positioning is unclear and undifferentiated.

However, clear positioning is a game-changer because it changes how prospects see a company's brand and products.? It allows a company to stand out and highlight how it is different, unique or better.

Position delivers rock-solid return on investment for CFOs looking to make strategic and smart investment decisions.?

It is one of the best investments a company can make because it delivers value and benefits across the organization, from marketing and sales to product development, HR, and capital raising.

In this post, I'll discuss why 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.

Engage Prospects

Positioning helps marketers and salespeople tell more impactful stories to attract and engage prospects.?

Powerful narratives highlight how a company's product has helped other businesses succeed, overcome challenges and problems and achieve tangible results.?

Positioning 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, marketers and salespeople can show how a product can align with a prospect's needs.

As important, clear and compelling positioning can help marketers and salespeople connect emotionally with prospects, building trust and rapport and can lead to more meaningful conversations and better relationships.?

Many purchase decisions are propelled by emotions rather than logic. For example, sales are easier and faster if a prospect feels connected to a product.

Shorten 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 quickly understand a product’s value, benefits, and ROI.?

As important, positioning makes 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.

Differentiate From the Competition

Another huge benefit of positioning (and one that is 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, a company can illustrate how its product is different, unique, or better.

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. If positioning is a key player in higher sales, CFOs are happy.
• Customer acquisition cost (CAC). ROI can be calculated based on the reduction in CAC by tracking the cost of acquiring new customers before and after implementing a new positioning strategy.
• Customer retention rate (CRR): Strong 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 the new positioning, ROI is calculated by comparing the cost of positioning 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 increased revenue, improved customer loyalty, and reduced customer acquisition costs for similar companies.?

At a time when marketing budgets are pulled back and every expenditure is carefully scrutinized, positioning is a smart investment because it benefits a business in different ways.?

If CFOs understand the value of positioning to attract and engage prospects and meet customers' needs, it is easier to approve investments that create a better, clearer and more compelling story.