Why SaaS Companies Fail: The Features vs. Benefits Messaging Trap
A88Lab. SaaS Agency
The #1 Demand Generation Agency for B2B Tech and SaaS Brands. We help generate demand instead of chasing it.
Think about your last few marketing campaigns. Consider the emails you sent to potential customers, the social media posts you made to promote your new product or service, and the blog posts you published. How much of this promotional content is focused on your product's features, and how much on your product’s benefits??
Imagine you're looking for a new productivity tool. You receive two emails: one listing features like 'real-time data syncing' and 'integration with multiple apps,' and the other highlighting 'never miss a deadline again' and 'boost team productivity.'
Which one makes you more interested?
Each product in the SaaS industry comes with its own set of features and benefits. Some are unique, some overlap with your own, and some require effort to highlight. The features and the benefits of your product are the ones that differentiate your product from its alternatives and help build a sustainable competitive advantage for your company.
Features focus on the product, while benefits focus on the customer. The differences may seem subtle, but whether you choose to prioritize product features or prioritize product benefits in your marketing messages can make a significant difference in how your brand is perceived.?
In this article, we’ll clarify the fundamental differences between features and benefits and discuss how to use this knowledge to illustrate why your product is superior to others.
What Is The Difference Between A Benefit And A Feature?
When we talk about product features, we talk about the functionality offered by a software program helping users resolve their problems. Simply, a feature is something that your product has or is. It is something that has to be planned, built, and executed.
On the other side, the benefit is the outcome or the results users will (hopefully) experience by using your product or service, which is the primary reason why a prospective customer becomes an actual customer.
The main problem with product features is that they are not persuasive. They are more about the product itself than about the customers. Before you talk about the features and how great your product is you need to make your customers care in the first place. If you leave your prospects to figure out by themself how the product is relevant to them and how it can help them, you won’t get the results you are hoping for.
When you only mention your product’s features, it can come across as self-centered, much like someone at a party who only talks about themselves. You need to show how your product is relevant to customers and how it can make their lives better. This is where benefits play an important role. Unlike features, benefits are all about the customer and how your product can help them.
What About Advantages?
Advantages are like benefits but with a comparative twist. They highlight the unique benefits your product offers that a competing solution doesn’t. Benefits are naturally compelling, tapping into the emotional needs of your audience and creating a desire for your product, while features simply describe what your product does without any persuasive angle.
Advantages often include features. For example, "Our software architecture is 170% faster than the nearest competitor." This shows how a feature sets your product apart. However, the most impactful advantages are those that emphasize customer benefits, which are what users gain from choosing your product over others. An example might be, "Complete your tasks 170% faster than with other tools." These types of advantages resonate more deeply with customers because they focus on their experience.
How To Turn Any Features into Benefits?
If you don’t know how to shift from talking about your features to talking about your benefits, there is no need to panic. You can easily achieve this using several practices. Let’s take a look at them:
1. The 3-Word Formula to Instantly Turn Any Feature into a Benefit
There’s a quick and effective trick to convert any feature into a benefit using just three words: “So you can…” These words force you to consider what the feature enables the customer to achieve, helping you clearly articulate its value. For example, “Our product is twice as fast as our competitor’s… so you never have to worry about missing a deadline again.” This simple phrase can make any feature more compelling.
2. Create Curiosity by Saying Less
Beyond “So you can…”, you can also drop the feature entirely after stating the benefit. This approach leaves the prospect intrigued and curious about how the product delivers the benefit. For instance, instead of saying, “Our product is twice as fast as our competitor’s… so you never have to worry about missing a deadline again,” you could simplify it to, “Never worry about missing a deadline again.” This piques curiosity and drives interest in the underlying feature.
3. Ask Two Key Questions to Enhance Your Messaging
To make your messaging more effective, ask yourself two questions:
4. Use the “5 Whys” to Uncover Core Benefits
The “5 Whys” technique involves repeatedly asking “Why” to drill down to the root cause or underlying benefit of a feature. For example, if Microsoft Teams integrates with PowerPoint Live and Microsoft Whiteboard, ask why that matters: “So you can hold more impactful meetings… so you can save time and increase alignment… so you can work more efficiently as a team… so you can have a greater impact on the business… so you can achieve more with less effort.” This method helps you uncover the deep, universal desires that your product fulfills.
5. Avoid the Common Trap of Misidentifying Your Audience
Always consider who you’re speaking to. The biggest mistake marketers make is assuming they’re always addressing a business owner. While senior staff may care about company revenue, the average employee is often more concerned with reducing stress, getting more done with less effort, and achieving personal goals. Tailor your benefits to match the specific desires of your audience, whether it’s a business owner focused on growth or an employee seeking a better work-life balance.
Here are some additional tips you want to consider:
Companies often feel the need to present every feature of their product, but customers don't necessarily equate more features with more value. Overloading a customer with details can make them feel misunderstood and devalue key points that actually matter to them. Focusing on fewer relevant benefits allows for a deeper, more meaningful conversation. You should only share details that directly help the customer achieve their goals or solve their pain points, skipping irrelevant information for a more personalized and effective pitch.
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How To Crafting Messaging That Converts?
By now, you should understand what a feature is, what a benefit is, why benefits are more important than features, and how you convert features into benefits. So, how do you combine all of this together and craft a message that converts?
When crafting messaging that truly converts, start by effectively mapping out your key features and their corresponding benefits. Start by identifying the core features of your product, those aspects that differentiate it from competitors. Once you've listed these features, employ techniques like the Feature-Benefit Matrix to systematically connect each feature with its associated benefits. These matrices will help you maintain consistent, relevant, and user-friendly messaging. Typically laid out as grids, they include a column for features, several for benefits, and additional columns for specific messaging data points or calls-to-action.
If you’ve never seen one, this might sound a bit confusing, so here’s an example:
In the left-hand column, you list the various features of your product (e.g., Features 1-5). The next three columns, labeled “Benefit A,” “Benefit B,” and “Benefit C,” allow you to specify three distinct benefits for each feature. Finally, the right-hand column provides space for corresponding calls to action.
Using this format, you can easily pinpoint the unique benefits each feature offers, making it easier to map out your overall messaging. This approach ensures that marketing and other teams, like product, are aligned in what’s being communicated to end-users.
For instance, if your product has a real-time collaboration feature, the benefit might be improved team productivity and reduced project delays. Prioritize features based on the impact of their benefits on your target audience. Features that deliver the most significant benefits should be highlighted prominently in your messaging.
If you want your messaging to convert, you need to make it customer-centric. Creating customer-centric messaging involves deeply understanding your target audience's pain points and desires. To do this, engage in customer research, surveys, and interviews to uncover the problems your customers are striving to solve. Use the benefits of your product to address these pain points directly. For example, if your audience if your audience struggles with time management, emphasize how your product's time-saving features can help with this issue rather than just listing the features themselves.
Balancing features and benefits in your messaging is key to engaging your audience effectively. While benefits often capture emotional interest, features provide the technical details that validate your claims. The best messages are the ones that integrate both of these elements. For example, instead of simply stating, "Our software has a robust analytics engine," you might say, "Our analytics engine helps you uncover actionable insights so you can make data-driven decisions that boost your ROI." Effective messaging not only highlights features but also demonstrates how these features translate into real-world benefits, making your product more compelling and relatable to potential customers.
Tieing Benefits to the Buyer’s Journey
When it comes to crafting your messaging that will resonate with the buyer’s journey, you need to adjust your focus on features and benefits depending on the stage a prospect is in. Each phase demands a different approach to how you communicate value, guiding the prospect from initial awareness to final decision.
Awareness Stage?
At this early stage, the prospect is becoming aware of a problem or challenge but may not fully understand it yet. Your messaging should focus on high-level benefits that immediately capture attention and address broad pain points rather than diving into specifics about your product’s features.?
For example, instead of saying, “Our platform integrates with multiple tools,” focus on the core benefits, like “Streamline your workflow and regain hours in your day.” Prospects at this stage are more likely to engage with messages that speak directly to the outcomes they desire, such as increased efficiency, reduced stress, or improved team collaboration. Keep the messaging simple and emotionally driven to hook their interest and pull them further into the funnel.
Consideration Stage?
Once prospects have identified their problem and are actively seeking solutions, your messaging should strike a balance between features and benefits. At this stage, they want to know not only what your product can do but how it solves their specific problem. This is where you can start tying key features to the benefits they deliver.?
For instance, instead of just saying, “Our product has real-time data syncing,” frame it as, “Our real-time data syncing feature ensures your team always works with the most up-to-date information, reducing errors and speeding up decision-making.” Here, prospects are comparing multiple options, so it’s important to connect each feature directly to a tangible benefit that addresses their specific needs, whether it's saving time, improving collaboration, or boosting productivity.
Decision Stage
In the final decision stage, prospects have narrowed down their options and are deciding which solution to purchase. At this point, they’re looking for more detailed information, and your messaging should highlight the competitive advantages of your product. This is where you can go deeper into how your product’s unique features provide significant benefits over competitors.?
For example, you might say, “Our platform offers integration with over 50 tools, allowing you to automate workflows and reduce manual effort by 50%, saving your team hours every week.” Focus on feature-driven benefits that are highly relevant to their decision criteria, such as cost savings, efficiency improvements, or competitive differentiation. Additionally, emphasize any exclusive benefits or advantages that make your product the best choice, like, “Our customer support is available 24/7, so you’re never left without help when you need it.”
How Other SaaS Brands Succeed With Benefits-focused Messaging?
One of the best ways to illustrate the power of benefits-focused messaging is by looking at how successful SaaS companies have made this shift and reaped the rewards.?
Let’s start with Slack, which managed to completely change the dynamics of workplace communication by highlighting the benefits of its product rather than just listing features. Early on, Slack’s messaging focused on the feature of “real-time messaging.” But as the company grew, they shifted to emphasizing how Slack helps teams stay aligned, collaborate effortlessly, and boost productivity. Their marketing shifted from talking about "channels" and "integrations" to framing their product as “Where work happens.” This change in focus helped Slack connect emotionally with teams struggling with communication overload and directly contributed to its rapid growth.
Similarly, Trello and Asana have mastered benefit-driven messaging. Trello initially focused on its features like boards, lists, and cards. However, they later emphasized the benefit of “organizing projects in a fun, flexible way,” appealing to teams who needed an intuitive, visual project management tool. Asana followed a similar path, moving from talking about its task management features to focusing on benefits like “achieve more together” and “reduce work about work,” which resonated deeply with teams aiming to improve their collaboration and productivity.
These examples show that by focusing on the real-world benefits users care about—such as saving time, reducing stress, or improving collaboration—companies can create messaging that’s more relatable and persuasive. Highlighting benefits over features can build stronger emotional connections with customers, leading to increased conversions, engagement, and loyalty.
Conclusion?
When it comes to creating messages that convert, it's all about understanding the difference between features and benefits. Features are the building blocks of your product, explaining what it does, while benefits show how it makes your customers' lives better. The best marketing messages don't just talk about features; they focus on the real-world perks your product offers. By turning features into benefits and showing how they meet customer needs or desires, you create a story that speaks directly to your audience. This not only makes your message more relatable but also more convincing.
To make sure your messages are both effective and engaging, try using tools like the Feature-Benefit Matrix and always tweak your content based on feedback and performance data. Remember, the goal is to strike a balance between technical details and emotional appeal, creating a message that not only informs but also inspires action.
By highlighting benefits over just features, you'll align your marketing efforts with what truly matters to your customers, leading to better engagement and higher conversion rates. Keep your messages customer-focused, and let the benefits of your product shine through.