Do B2B SaaS Businesses Have a Messaging or Positioning Problem?

Clear messaging and strong positioning are crucial for B2B success, especially for SaaS businesses. These two elements form the foundation of how your brand is perceived and how effectively it communicates its value to potential customers. However, these concepts are often confused, leading to significant challenges in connecting with your audience and differentiating your offerings in a crowded market.

Messaging focuses on the specific words and language you use to communicate your value proposition, benefits, and key points to your audience. It is the voice of your brand, crafted to resonate with your target customers and convey your unique value in a compelling and understandable way.

On the other hand, positioning is about where your brand stands in the market relative to your competitors. It defines the niche you occupy, the problems you solve, and how you are perceived in terms of value, quality, and relevance.

The confusion between messaging and positioning can lead to misalignment in your marketing and sales efforts, making it difficult for customers to understand why they should choose your solution over others. To avoid this, it is essential to distinguish between the two and ensure they are both strategically aligned with your overall business goals.

So, how do you determine whether your company has a messaging problem or a positioning problem? And how do you address each?

First, evaluate your messaging by examining how well it communicates your value proposition. Are your key messages clear, concise, and compelling? Do they resonate with your target audience and address their pain points? If your messaging is vague, inconsistent, or fails to engage your audience, you likely have a messaging problem.

Identifying a messaging problem

When messaging becomes a problem, your audience might struggle to understand what your company offers and how it can benefit them. This often results in inconsistent communication across different channels, where the core message varies or becomes diluted.

You might notice low engagement rates with your marketing materials or receive feedback that your messaging is confusing or overly complex. A clear sign of a messaging problem is when potential customers frequently ask basic questions about your product or service that should be apparent from your communications. Consistent, targeted, and benefit-focused messaging is crucial for effectively conveying your value proposition.

Let’s look at Slack as an example. Early in its development, Slack struggled with messaging. Initially marketed as a “team communication tool,” users found it difficult to understand its value. After refining its messaging to focus on “making work simpler, more pleasant, and more productive,” Slack saw a significant increase in user adoption and engagement.

As you can see, it’s not what it is, it’s how you say it, which can be tricky for some SaaS businesses. For example, I worked with a SaaS client in the past whose initial messaging was too technical and failed to connect with their target audience. By conducting a messaging audit and focusing on the benefits rather than the features, my team helped them craft a clearer, more compelling message that resonated with their audience, leading to increased engagement and conversions.  

Solutions for messaging problems

If you have identified a messaging problem, here’s what you can do to get it right:

• Conduct a messaging audit to identify inconsistencies and areas of confusion.
• Refine your messaging to be clear, concise, and focused on the benefits to the user.
• Tailor your message to your target audience by gathering feedback and understanding their pain points and needs.
• Ensure your messaging is aligned with your brand’s voice and tone.

Identifying a positioning problem

Positioning problems occur when your brand or product lacks a clear and unique place in the market, making it difficult for customers to understand why they should choose you over competitors. Effective positioning is about establishing a distinctive identity and value proposition that resonates with your target audience.

Without strong positioning, your product may be perceived as a "me too" offering, blending in with numerous similar options. Identifying and addressing positioning issues is crucial to differentiate your brand and create a compelling market presence.

Let’s look at Apple vs. Microsoft as an example. In the early 2000s, Apple redefined its positioning with the “Think Different” campaign, setting itself apart as a brand for creative individuals. This clear and unique positioning helped Apple differentiate from Microsoft and capture the market’s imagination.

Solutions for positioning problems

If you have identified a positioning problem, here are a few things you can do to make sure you get it right:

• Conduct a competitive analysis to understand your market and identify gaps.
• Redefine and clarify your brand’s positioning by focusing on your unique strengths.
• Align your positioning with market needs and trends to ensure relevance.
• Consistently communicate your positioning through all marketing and sales efforts.

By clearly distinguishing between messaging and positioning and addressing each strategically, you can enhance your brand’s communication effectiveness, build stronger connections with your audience, and achieve greater success in the competitive SaaS market.

How to diagnose your problem

Before you go into solutions, make sure to first identify and diagnose your problem. Messaging and positioning take a lot of hard work and dedication. It’s important to take the time to get it right and ensure you understand exactly how to approach the changes you need to make.

Here’s a glimpse into how to identify your problem:

Here are some questions to ask yourself:

• Is your target audience clear on what your product does?
• Do you receive feedback that your messaging is confusing or inconsistent?
• Are you able to clearly articulate what makes your product different from competitors?
• Do your customers understand why they should choose your product over others?

Tip: Gather feedback from customers and stakeholders to gain insights into where the issues may lie.

When messaging and positioning overlap

Messaging and positioning are deeply interconnected. For example, your positioning sets the foundation for your messaging, and your messaging communicates your positioning. Ensuring both are aligned creates a cohesive brand strategy.

We had a client where both messaging and positioning needed to be addressed simultaneously. Initially positioned as a “comprehensive business solution,” their messaging failed to communicate specific benefits. We helped them reposition as the “ultimate tool for nonprofits” and crafted messaging around this theme. The alignment of messaging and positioning resulted in a stronger market presence and increased user engagement.

Messaging and positioning are crucial for your success

Clear messaging and strong positioning are essential for any B2B SaaS company aiming to succeed in today’s competitive market. It’s important to regularly review and adjust both as needed to ensure they remain effective.

If you’re struggling to diagnose whether you have a messaging or positioning problem, our team at PipelineRoad is here to help. Reach out for a consultation or explore more resources on our blog.