Positioning is dead, long live narrative
Before I launched Spiel, my Narrative Design agency, I noticed a trend in B2B SaaS circles. People were starting to talk less about product positioning and more about strategic narrative.
This intrigued me, because it was something that I'd started promoting in the agency circles I was part of back then.
For me, positioning had become a bit outdated. This was for many reasons which I'll go into later. But I saw an opportunity for agencies to use narrative to differentiate themselves and resonate with their target clients.
And I knew that this was also the case for B2B SaaS. So Spiel was born out of this realisation.
So before I explore why positioning (in its current incarnation) is dead and narrative is taking its place, let me just clarify what each means.
What is positioning?
There are many definitions of positioning floating about. In fact, this is one of the main reasons for its death. The most basic, fundamental definition of positioning is that it's about defining your product's place in the market.
The simplest expression of this is: "The [product type] for [customer type]". For example, "The CRM for accountants".
But there are those who say that positioning is also about owning a place in buyers' minds. And that's where things become a bit more complex. Because what does that actually mean? How do you go about doing it?
You might, for instance, decide to add a third variable to the mix: the unique selling point.
Your product's positioning might then be boiled down to: "The [product type] for [customer type] that has a [USP]." For example, "The CRM for accountants that uses AI to help you maintain relationships."
This positions your product in a certain category, aimed at a specific market, with a unique reason to be chosen.
Okay, so then where does narrative come in?
Obviously everyone knows what a narrative is in the broadest sense of the word. It's the story, or the plot of the story. When you tell a friend about that new Ryan Gosling movie you saw, you might tell them a bit of the narrative so they better understand what the movie's about.
A narrative can take many forms but the easiest way to see it is as a journey that your target customers are on. They're the hero of the story but something is stopping them. Your product is the guide that helps them overcome that obstacle and succeed.
Everyone will have their own take on the structure of a product narrative. If you subscribe to this newsletter you'll be sent a link to download my very own framework, but I'll summarise it below:
Show the status quo - What's the current situation your user is stuck in?
Ramp up the stakes - What's the worst that could happen if they remain stuck?
Introduce the way forward - How does your product help them escape the status quo?
Explain the plan - How does your product actually work?
Provide the happy ending - What does your user's life look like if they succeed?
What do positioning and narrative have in common?
Narrative Design actually has its roots in positioning. In fact, I'd explain it as being a new evolution of positioning. So while they are different, they do share some similarities.
For starters, both have the same underlying aim. It's all about finding and owning a space in a market. Because that's how your product becomes the only possible option. Which means you're in control. Which means growth.
The three cornerstones of positioning that I explained earlier are also present in the narrative. In fact, without them you'll struggle to come up with a convincing narrative in the first place. So a lot of the work I do before designing the narrative is actually more traditional positioning work around categories and markets.
But that's where the similarities end. So it's time to explain why narrative is a bigger and bolder version of positioning...
Why narrative is replacing positioning
There are three main reasons I believe that narrative is a stronger strategy than positioning when it comes to owning a space in the market and in people's minds. In other words, narrative is better at what positioning is supposed to do than positioning is itself.
Those reasons are:
1: Resonance
2: Ownership
3: Guidance
Let's take each in turn.
1: Resonance
Since the dawn of humanity people have sat around campfires (hence the name of this newsletter) and told stories. Sure, the campfire might have been replaced with the latest storytelling methods but the nature of storytelling has never left us.
We understand the world through stories that we tell each other and that we tell ourselves. Because we resonate with them. And when you get your product's narrative right, your target customers put themselves in that narrative. Which means they're more engaged, better understand your product, and are closer to choosing you.
The alternative is to just focus on positioning. It's dry and unemotional. And while it might sound logical in a branding textbook, it doesn't actually reflect how people think and buy.
2: Ownership
I already mentioned that the aim of positioning is to own a space in the market. So if you decide that your product is a CRM for accountants then you've positioned your product. But how much do you really own that space in the market? B2B SaaS categories can be extremely saturated. Chances are there are other CRM options for accountants out there. So your positioning hasn't helped.
Most advice is to niche down further and become the CRM for solopreneur accountants in New Zealand. But the tighter you go the smaller your market becomes.
Instead, a narrative adds on to that initial positioning and distances you from others in the same category and market. It gives you an actual space you can own. If a rival product copies your positioning, that's just natural competition and nobody bats an eyelid. But if a rival product copies your narrative, then they'll just be seen as a cheap imitation.
3: Guidance
Your positioning can't just exist as one internal statement. It needs to be communicated externally for it to succeed. The difficulty is taking that one-liner and turning it into a GTM strategy. Okay, so you have a CRM for accountants? How do you market that? What is your content going to say? You'll likely end up doing the same marketing, the same content, the same campaigns as others in your space.
But if you have a narrative, you also have a point of view. And this point of view becomes your guiding light when it comes to marketing your product. You can put out content and campaigns that align with that POV. And your competitors can't without simply copying you and reinforcing you as the market leaders.
A strong narrative isn't just a nice strategy exercise, it's the foundation of your entire marketing strategy.
Sending positioning off into the sunset
For all those reasons above, it's time to stop relying on positioning alone and to start designing narratives that help you resonate with your target customers.
And if you're still not convinced feel free to send a strongly worded email telling me why I'm wrong. Don't hold back. I'm ready for you...
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