The importance of product positioning, and how to get it right

Edited excerpt from Price is what you pay, value is what you get by Inside Intercom:

Understanding why your customers buy your product is the key to positioning it properly.

Real example: A friend was having no luck pitching a product as “all your online files in one place“. That sounded good but simply didn’t solve a problem people related to. She heard lots of answers like “This sounds great! I’ll give it a try in a couple of weeks”.

After digging deeper, she found a real pain point that her potential customers experienced quite often. She re-framed the product as “When your favourite app gets bought and shut down, we’ll have your back“. That resonated with her market. Not a single line of code changed, but all of a sudden this product was a painkiller. And people started buying.

Key idea: Understand that it costs more than just money to use your product. So when you’re asking your users to do something, frame it in terms of their needs and desires, not your features and bullet points.

Tip: Customers who have bought your product recently will describe it far better than you can. As Peter Drucker said: “The customer rarely buys what the company thinks it sells him”.

Notes:
(1) Cf. What problem are you solving?
(2) Belle Beth Cooper frames this as “features vs. benefits”. See Make me better and I’ll buy your product.
(3) “Customers who have bought your product recently will describe it far better than you can.” Cf. Sean Ellis’ “rigorous process for identifying the most passionate users and then getting their unstructured feedback about how they were getting value”, in How to identify your product’s “must have” experience.

One thought on “The importance of product positioning, and how to get it right

  1. Pingback: How to name your product and create its tag line | A Founder's Notebook

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