Positioning — How to modify your category with differentiating modifiers

Let's get specific about the "what you do" and "why you" components of your product positioning.?In particular, let's talk about categories and differentiating category modifiers.

As a reminder, your positioning should answer 4 key questions for your prospects:

1. What you do = Your category
2. Who you serve = Your target customers (ICPs/personas)
3. How you help = Your primary business impact/benefit
4. Why you = Your differentiation vs. other vendors in your category

Let's focus on (1) and (4).

The template: Base category + Differentiating modifiers

I believe any position (excluding primary benefit) can be broken out as follows. Not every position needs every component.

• [ superlative ] [ category modifier ] + [ base category ] + [ audience modifier ]

Examples

• The best NoSQL database << Eg MongoDB
• The best cloud-native UX design platform << Eg Figma
• The first intelligent product adoption platform
• The best business texting solution for HubSpot users
• The best CRM for investment bankers << Classic April Dunford example
• The best HRMS for mid-size customers
• The best 2D CAD software for landscape designers

Let’s drill into each component.

Superlatives

All positioning statements include a superlative. Everyone wants the best. Either the best at any price or the best at a reasonable price. The best, of course, means the best for delivering the primary business outcome they’re seeking when selecting a product in your category.

Of course, it’s not enough to claim to be the best. You’ll need to prove it with a combination of feature-impact-benefit statements (part of your product messaging) and customer proof (testimonials, case studies, etc.)

Base categories

Let's assume you are co-opting an existing category rather than creating a new category. Unless you have deep pockets and endless patience, I advise my consulting clients to co-opt an existing category. Obviously, your chosen category should be very close to what you actually do.

Benefits of using an existing category

Using an existing category provides 3 key benefits when sharing your positioning with prospects:

1. Clarity — Prospects will immediately understand what you do (absent your differentiation), how you can help them, and where you fit into their business, workflows, and tech stack. A great base category is one that is used by industry analyst firms (Gartner, Forrester, etc.) and software product review sites like G2 and Capterra. These are the most widely adopted and understood. Here’s a comprehensive list of established software categories for you to consider.
2. Demand — Prospects are already researching your category on Google and elsewhere. There is search traffic you can tap into with paid search campaigns. There is existing demand (problem and category awareness) for you to tap into with email and paid social campaigns.
3. Budget — Companies already have allocated budget set aside for your category

Differentiating modifiers

Once you have chosen your base category, you have 2 major options for adding differentiating modifiers:

1. A category modifier lets you own a product niche within your category

Example: The best NoSQL database << Eg MongoDB

1. An audience modifier lets you own a customer segment within your category. A customer segment could be based on a system of record (eg HubSpot users) or an industry (eg investment bankers) or even company size (SMBs, Enterprise, etc.).

Example: The best CRM for investment bankers << Classic April Dunford example

Nothing stops you from using both a category modifier and an audience modifier.

Example: The best 2D CAD software for landscape designers

What do you do after you’ve nailed your product position?

Four things:

1. Add your audience and primary business benefits to create a positioning statement.

Example: We provide the best NoSQL database for developers who demand the highest performance and scalability for applications that manage text, video, and audio.

1. Expand on your position in your product messaging. List the top product features that allow you to deliver on your position better than anyone else. Tie each feature to the business impact you promise in your position.
2. Provide customer proof points to back up your best claim. You need testimonials and case studies where customers enthusiastically support your position as the best x for y.
3. Translate dry positioning statements and product messaging into memorable and engaging copy that delivers your story in ways that compel your target customers to research and buy your product. Think of copy as the bridge between your product story and your tactical execution programs, such as demand generation and sale enablement.

That's it. I hope that helps you get more specific with the category and differentiating modifier(s) in your product positioning.