April Dunford on product positioning, segmentation, and optimizing your sales process

Jun 9, 2022 1h 10 insights Episode Page ↗
April Dunford, best-selling author of "Obviously Awesome" and a leading expert in B2B product positioning, shares her methodology for defining and implementing effective positioning. She discusses how to identify positioning problems, the critical steps to develop strong positioning, and common pitfalls for startups and established companies.
Actionable Insights

1. Holistic Positioning Alignment

Ensure perfect alignment on positioning across the entire company (marketing, product, sales, customer success, CEO). Gather all key stakeholders in a room to build and agree upon positioning, fostering a shared understanding and consistent execution.

2. Systematic Positioning Process

Follow a structured process to define positioning: 1) Identify competitive alternatives (status quo and short-list competitors). 2) List differentiated capabilities. 3) Translate capabilities into unique value themes. 4) Define best-fit target customers who care deeply about that value. 5) Determine the market category that makes your value obvious to those customers.

3. Prioritize the Champion Persona

Focus marketing and sales efforts primarily on the ‘champion’ persona within an account, as they are the gatekeeper and consensus-builder. Arm this champion with the narrative and justification needed to sell internally to other stakeholders (IT, purchasing, economic buyer), rather than creating numerous detailed personas for every individual involved in a B2B deal.

4. Recognize Positioning Problems

Listen for specific cues in sales calls that indicate weak positioning: customers asking to ‘back up and pitch again’ due to confusion, customers misidentifying your product (e.g., ‘you’re just like Salesforce’), or customers understanding what you do but not why they should pay for it (e.g., ‘I can do that in a spreadsheet’).

5. Translate Positioning to Sales Narrative

After defining your positioning, transform it into a compelling sales narrative or story. This narrative should resonate with qualified prospects and provide the sales team with a clear, consistent pitch (e.g., a deck, demo, script) that everyone in the company can tell.

6. Define Differentiated Value

Articulate why your product is the ‘best kind of solution’ for a particular type of customer, not just ‘better’ generally. Clearly explain the specific value you deliver that no other company can, helping customers justify their purchase decision against alternatives.

7. Early-Stage Loose Positioning

For super early-stage products, keep positioning a ’thesis’ and allow it to be a bit loose. This enables the market to pull you in unexpected directions, gathering data on who truly loves your product and why before tightening up your positioning and accelerating growth.

8. Tighten Positioning with Market Signal

Transition from loose to tight positioning once a clear pattern emerges regarding who loves your product and why. When you consistently win deals under specific conditions (e.g., customer segment, existing tech stack), you’re ready to ‘smash your foot on the gas’ and target that market aggressively.

9. Positioning Precedes Messaging & Branding

Understand that positioning is a fundamental input to messaging and branding, not interchangeable with them. You cannot effectively write marketing messages or define your brand’s stance until you clearly understand your target buyer and your differentiation against market alternatives.

10. Regular Positioning Check-ins

Periodically check in on your product’s positioning, as it is not static. Products evolve, and markets shift, so good positioning can become outdated, necessitating a review process to ensure it remains optimal and effective.