Knowing who you serve, and how you serve them, may seem pretty elementary if you’re running a business. And yet, if I had a penny for every founder I’ve met who failed to articulate that concisely, I would perhaps no be rich. But I’d sure have a pretty big pile of pennies.
Because there is this one common mistake that everyone in business (myself included), is always tempted to make. We like to think we can help everyone.
And if we can’t help everyone, we still don’t want to close the door to anyone. Because that would be the same as closing the door to potential revenue, right?
Wrong!
Instead, by trying to attract everyone, you’ll end up attracting nobody. Because nobody will perceive your solution as the perfect fit for them.
And every prospect is looking for the perfect fit for them.
For them, specifically.
Which requires you to be just that. Specific.
Let’s say, for example, that a SaaS startup is looking for a copywriter.
Will they go for a copywriter that caters to all kinds of different niches and industries, and claims to be great at it? Or are they more likely to go with the copywriter who has specialized in helping SaaS companies grow, and who knows their particular challenges?
Chances are that the latter will seem more attractive. It will probably feel like the perfect fit for them.
And to be able to create that feeling with your target audience, that you’re the perfect fit for them, you need to get crystal clear on why and how that is so.
Enter your positioning statement.
That’s the place to get crystal clear on the what, the for whom and the how.
I’d go as far as saying that the presence or absence of a good positioning statement can make or break a business. Get this one right, and you’ll have a perfect northern star to guide you through all kinds of strategic decisions, about everything from product development to marketing and communication.
Value Proposition vs Positioning Statement
First, let’s have a look at how the positioning statements differ from your value proposition.
Because while most companies are pretty clear on their value proposition, not everyone is aware of the importance of a succinct positioning statement.
Hubspot provides a good definition of what the value proposition entails:
Your value proposition is your unique identifier. Without it, people don’t have a reason to work with you over somebody else.
In other words, it describes what sets your offer apart from that of your competitors. It gives a high-level, big picture overview of your product’s or service’s benefits. Developing the value proposition comes first.
A positioning statement, on the other hand, is more specific and focused. It builds on your value proposition, but it outlines more in detail how your service or product solves a problem for your persona. A well-written positioning statement should be at the center of any positioning and marketing strategy.
A template for writing your positioning statement
Keep in mind, and this is important, that your positioning statement is not a public-facing statement. It’s not a catchy tagline, nor something you put on your website. It’s an internal document that will be incredibly useful to keep everyone aligned and pulling in the same direction.
In his marketing classic Crossing the Chasm, Geoffrey Moore suggests a great template that will help you put your positioning statement together:
For (target customer)
who (statement of the need or opportunity),
(product name) is a (product category)
that (statement of key benefit — that is, compelling reason to buy).
Unlike (primary competitive alternative),
our product (statement of primary differentiation).
Does it sound complicated? It really isn’t. Let’s have a look at how this would play out in the real world.
Take Amazon, for example. If they were to use this template, the result would read something like:
For World Wide Web users
who enjoy books,
Amazon is a retail bookseller
that provides instant access to over 1.1 million books.
Unlike traditional book retailers,
Amazon provides a combination of extraordinary convenience, low prices and comprehensive selection.
This template is not written in stone. But I’ve found the structure and components to be useful regardless of product or service.
Of course, it also be phrased differently, while still containing the same elements. Here’s an example of what Walt Disney’s positioning statement might look like:
For the young and young-at-heart,
Walt Disney World is the theme park
that best delivers on an immersive and magical experience
because Walt Disney World, and only Walt Disney World, connects you to the characters and worlds you most desire.
A statement of differentiation
The positioning statement is a statement of differentiation. It is there to specify what not only what sets your product or service apart from your competitors, but also for whom it’s relevant.
It’s similar to what’s often called the unique selling proposition or the unique selling point (USP), but it includes a stronger focus on the persona involved. In my opinion, that makes it more powerful.
Because while salespeople tend to have a whole list of USPs that they pick and choose from depending on the customer in front of them, the positioning statement is more stable and static.
Your positioning statement is your company’s DNA distilled into words. And as such, it should be at the very core of all your messaging.