How to Position Your SaaS Product Against Competitors
- Narrative Ops
- Feb 7
- 14 min read
Updated: Feb 11
What You’ll Learn:
How to create competitive positioning that actually differentiates (not just “we’re better”)
The 4 competitive positioning strategies that work for B2B SaaS
How to identify and exploit competitive gaps
Real examples from companies that repositioned against competitors successfully
Step-by-step framework to build your competitive positioning
Introduction
“We’re like [Competitor], but better” is not competitive positioning.
It’s lazy positioning that makes you forgettable.
When you position yourself as “[Big Competitor] but with better UX” or “[Category Leader] for small businesses,” you’re doing two things wrong:
1. Anchoring to their frame - You’re letting competitors define the conversation
2. Making weak claims - “Better” or “easier” aren’t defensible differentiation
The companies with the strongest competitive positioning don’t position against competitors at all. They position against the real alternatives customers consider which might not be direct competitors.
Example: Slack didn’t position against HipChat or Microsoft Teams. They positioned against email. By changing the competitive frame, they created a category instead of joining one.
This guide shows you how to create competitive positioning that’s defensible, compelling, and drives real business results.
Note: This is part of our comprehensive Ultimate Guide to SaaS Positioning. For the complete positioning framework, see B2B SaaS Positioning Framework. For specific examples, see 12 SaaS Positioning Statement Examples.
The Problem with Traditional Competitive Positioning
What Most Companies Do
The formula: “We’re [Competitor Name], but [adjective]”
Examples:
“We’re Salesforce, but easier to use”
“We’re HubSpot, but more affordable”
“We’re Asana, but with better integrations”
Why this fails:
1. You’re in their frame
You’ve accepted their category definition and are fighting on their terms.
2. Claims are undefensible
“Easier,” “better,” “faster” are subjective. Competitors will claim the same thing.
3. You’re always #2
By positioning against the leader, you’re admitting they’re the standard. You’ll never be #1 in that frame.
4. Attracts price shoppers
When you position as “cheaper alternative,” you compete on price, not value.
The Real Competition Isn’t Always Competitors
Here’s what most companies miss: Buyers don’t just evaluate you against direct competitors.
They evaluate you against:
Status quo (what they do today)'
Adjacent categories (different solutions to similar problems)
DIY approaches (building it themselves)
Do nothing (living with the problem)
Example: Calendly
Most would position: “We’re better than [other scheduling tools]”
Calendly actually positioned: “Unlike email back-and-forth, we automate scheduling”
The difference: Email coordination is what people actually use. By positioning against the real alternative (behavior), not competitors (products), Calendly created a clearer value proposition.
The 4 Competitive Positioning Strategies
Instead of positioning as “better than Competitor X,” use one of these strategic approaches.
Strategy 1: Change the Category
What it is: Position in a different category than your competitors
When to use: Your product does something fundamentally different, even if it solves similar problems
How it works:
Don’t compete in their category
Create or claim a different category
Set new evaluation criteria
Example: Gong vs CRMs
Traditional positioning (weak): “We’re a better CRM with call recording”
Actual positioning (strong): “We’re a revenue intelligence platform, not a CRM. CRMs track what reps say happened. We capture what actually happened.”
What changed:
Category: Revenue Intelligence (new) vs CRM (existing)
Frame: Conversation analysis vs data entry
Evaluation criteria: Automatic capture vs manual logging
Result: Gong created a category instead of fighting in the CRM space.
Example: Notion vs Project Management Tools
Traditional positioning (weak): “We’re better project management with docs”
Actual positioning (strong): “We’re an all-in-one workspace. Unlike point solutions for docs, wikis, and projects that create silos, we unify everything.”
What changed:
Category: All-in-one workspace (new) vs competing in docs OR project management
Frame: Consolidation vs fragmentation
Evaluation criteria: Flexibility vs specialized features
Result: Notion positioned at the intersection of multiple categories.
How to execute Strategy 1:
Step 1: Identify what your product does that doesn’t fit existing categories
Step 2: Name the new category (or find an adjacent one)
Step 3: Explain the category in relation to familiar categories
“Like [familiar category], but [key difference]”
Example: “Revenue intelligence is like CRM, but for your actual conversations”
Step 4: Set new buying criteria that favor you
What should buyers evaluate?
What matters in this new category?
Warning: Only create new category if:
You can invest in category education
Your differentiation is substantial enough
You have 6-12 months for market education
Strategy 2: Change the Alternative
What it is: Position against what customers actually use, not just who competes with you
When to use: Your biggest competition is a behavior, status quo, or adjacent category, not a direct competitor
How it works:
Identify the real alternative customers consider
Position against that instead of competitors
Show why you’re better than status quo
Example: Slack vs Email
Traditional positioning (weak): “We’re better than HipChat and Microsoft Teams”
Actual positioning (strong): “Unlike email which is chaotic and siloed, we organize conversations by channel and integrate your entire stack”
What changed:
Alternative: Email (behavior) vs HipChat/Teams (products)
Frame: Communication organization vs feature comparison
Evaluation criteria: How to organize team communication vs which chat tool
Result: Slack changed the conversation from “which chat tool?” to “should we stop using email?”
Example: Superhuman vs Gmail
Traditional positioning (weak): “We’re a better email client than Outlook”
Actual positioning (strong): “For busy executives who waste hours in email. Unlike Gmail which is slow and cluttered, we’re the fastest email experience ever made.”
What changed:
Alternative: Gmail (what executives actually use) vs “email clients”
Frame: Speed and efficiency vs features
Evaluation criteria: Time saved vs feature count
Result: Superhuman charges $30/month vs free Gmail by positioning on speed, not features.
How to execute Strategy 2:
Step 1: Interview customers about their buying process
“What were you using before us?”
“What alternatives did you seriously consider?”
“What almost made you not buy?”
Step 2: Identify the most common alternative (not just competitors)
Step 3: Position against that alternative
Be specific: “Unlike [specific alternative]”
Not vague: “Unlike other solutions”
Step 4: Show your advantage over that alternative
What can you do that it can’t?
Why is your approach better?
Example: If 80% of customers were using spreadsheets, position against spreadsheets, not competing SaaS products.
Strategy 3: Vertical/Niche Specialization
What it is: Own a specific vertical or niche that competitors ignore or serve poorly
When to use: Your best customers cluster in one industry, company stage, or use case
How it works:
Choose a specific vertical/niche
Build exclusively for them
Out-specialize the generalists
Example: Veeva vs Salesforce
Traditional positioning (weak): “We’re a CRM with compliance features”
Actual positioning (strong): “The only CRM built exclusively for life sciences. Unlike generic CRMs, we’re purpose-built for pharma and biotech workflows.”
What changed:
Target: Life sciences (specific) vs all industries (generic)
Frame: Industry expertise vs general CRM features
Evaluation criteria: Life sciences-specific capabilities vs customization
Result: Veeva charges premium prices because they’re specialists, not generalists.
Example: Procore vs Generic Project Management
Traditional positioning (weak): “We’re project management for construction”
Actual positioning (strong): “The only construction management platform purpose-built for the construction industry. Unlike generic tools, we understand construction workflows.”
What changed:
Target: Construction (exclusive) vs all projects
Frame: Construction-specific vs customizable
Evaluation criteria: Built-in construction workflows vs flexibility
Result: Procore owns construction project management.
How to execute Strategy 3:
Step 1: Identify if 70%+ of your best customers are in one vertical
Step 2: Commit exclusively to that vertical
All features optimized for them
All marketing speaks to them
All case studies from that vertical
Step 3: Build vertical-specific capabilities
Integrations they need
Workflows they use
Language they speak
Step 4: Position as “built for [vertical]” not “works for [vertical]”
Warning: Don’t fake vertical focus. If you’re not committed, don’t claim it.
Strategy 4: Audience/Use Case Specialization
What it is: Serve a specific audience or use case better than anyone else
When to use: You serve an underserved audience that big competitors ignore
How it works:
Identify underserved audience
Build specifically for them
Position as “for [audience]” not “for everyone”
Example: Webflow vs Traditional Website Builders
Traditional positioning (weak): “We’re a better website builder”
Actual positioning (strong): “For designers who want to build production websites without code. Unlike builders that limit you to templates, we give designers full creative control.”
What changed:
Audience: Designers (specific) vs everyone who needs websites
Frame: Designer empowerment vs ease of use
Evaluation criteria: Creative control vs template selection
Result: Webflow charges premium prices to designers who value creative control.
Example: Linear vs JIRA
Traditional positioning (weak): “We’re a simpler issue tracker”
Actual positioning (strong): “For high-performance teams who value speed. Unlike tools built for enterprise bureaucracy, we’re opinionated and optimized for velocity.”
What changed:
Audience: High-performance teams vs all software teams
Frame: Speed and opinions vs flexibility and customization
Evaluation criteria: Workflow velocity vs customization options
Result: Linear attracts teams that value speed over flexibility.
How to execute Strategy 4:
Step 1: Identify an underserved audience
Who do competitors ignore?
Who has unique needs?
Who values different things?
Step 2: Build specifically for them
Optimize for their workflow
Use their language
Solve their specific problems
Step 3: Position explicitly for that audience
Make it clear who it’s for
Repel the wrong audience
Attract the right audience
Example: “For designers, not developers” immediately clarifies who Webflow is for.
How to Choose Your Competitive Positioning Strategy
You don’t pick randomly. Your strategy should emerge from your unique attributes and customer data.
The Decision Framework
Ask these questions:
Question 1: Do we do something fundamentally different from competitors? - YES → Consider Strategy 1 (Change the Category) - NO → Continue to Question 2
Question 2: What’s the most common alternative customers consider? - Status quo or behavior → Strategy 2 (Change the Alternative) - Direct competitor → Continue to Question 3
Question 3: Are 70%+ of our best customers in one vertical? - YES → Consider Strategy 3 (Vertical Specialization) - NO → Continue to Question 4
Question 4: Do we serve an underserved audience exceptionally well? - YES → Consider Strategy 4 (Audience Specialization) - NO → Go back to Question 1, dig deeper
Decision Matrix
Your Situation | Best Strategy | Example |
Novel approach/methodology | Change the Category | Gong (revenue intelligence) |
Biggest competition is status quo | Change the Alternative | Slack (vs email) |
Best customers in one industry | Vertical Specialization | Veeva (life sciences) |
Serve specific audience better | Audience Specialization | Webflow (designers) |
Competitive Positioning Framework (Step-by-Step)
Here’s how to build your competitive positioning systematically.
Step 1: Understand the Competitive Landscape
Task: Map all alternatives customers consider
Exercise: The Four Quadrants
Create four columns:
1. Status Quo: What they do today without any tool
Examples: Spreadsheets, email, manual processes
2. Direct Competitors: Other SaaS products in your category
List top 5 competitors
3. Adjacent Categories: Different category, similar problem
What else solves this problem?
4. DIY: Build it themselves
Internal tools, scripts
For each alternative, document:
Why customers choose it
What’s good about it'
What’s bad about it (from customer interviews)
How you’re different
Output: Complete alternatives map
Step 2: Identify the Primary Alternative
Task: Determine what customers actually compare you to most often
Questions to answer:
From customer interviews:
What did they use before you?
What did they seriously consider?
What almost made them not buy?
Count mentions:
Alternative mentioned by 10+ customers = Primary
Alternative mentioned by 7-9 = Secondary
Alternative mentioned by <6 = Not primary
Critical decision: This becomes your “Unlike [X]” in positioning
Example:
If 12 of 15 customers mentioned spreadsheets → Position against spreadsheets
If 10 of 15 mentioned Salesforce → Position against Salesforce
If 8 of 15 mentioned “email chaos” → Position against email
Output: Primary competitive alternative identified
Step 3: Analyze Competitor Positioning
Task: Understand how competitors position themselves
Create competitor positioning matrix:
Competitor | Target Customer | Category Claim | Differentiation | Strengths | Weaknesses |
Comp 1 | Who they target | How they categorize | How they differ | What they’re good at | Where they’re weak |
Comp 2 | … | … | … | … | … |
Look for:
What category do they claim?
Who do they target?
How do they differentiate?
What don’t they talk about?
Where are the gaps?
Output: Competitive positioning map
Download our Competitor Analysis Template to organize this research.
Step 4: Find Your Positioning Wedge
Task: Identify the gap where you can win
The Wedge Concept: A positioning wedge is the strategic angle that lets you split the market and claim your space.
Types of wedges:
1. Category Wedge: Create new category competitors can’t claim
Example: Gong’s “revenue intelligence”
2. Alternative Wedge: Position against different alternative
Example: Slack vs email (not HipChat)
3. Vertical Wedge: Own a vertical competitors ignore
Example: Veeva (life sciences)
4. Audience Wedge: Serve an audience better than anyone
Example: Webflow (designers)
5. Attribute Wedge: Own a unique attribute
Example: Superhuman (speed)
How to find your wedge:
Look at your unique attributes:
What can you do that alternatives can’t?
What do competitors not focus on?
What do customers value that’s underserved?
Example:
Unique attribute: Built specifically for real estate
Competitor focus: Generic CRMs for all industries
Customer value: “Understand real estate workflows”
Wedge: Vertical specialization in real estate
Output: Your competitive wedge identified
Step 5: Craft Your Competitive Positioning Statement
Task: Write your positioning with competitive differentiation built in
Template:
For [target customer]
Who [statement of need]
Our [product] is a [category]
That [key benefit]
Unlike [primary alternative - from Step 2]
We [differentiation - from Step 4]
Example (Real Estate CRM using Vertical Wedge):
For real estate agents
Who lose leads in spreadsheets and generic CRMs
Our product is a CRM built specifically for real estate
That helps you close 20% more deals
Unlike generic CRMs that don't understand real estate workflows
We integrate with MLS and automate the entire transaction process
Notice:
“Unlike generic CRMs” (specific alternative)
“built specifically for real estate” (vertical wedge)
“MLS integration” (defensible differentiation)
Output: Competitive positioning statement
Step 6: Build Your Proof Map
Task: Connect each positioning claim to evidence
Create proof table:
Positioning Claim | Evidence | Source |
“Built for real estate” | MLS integration, commission calculator, transaction management | Product features |
“Close 20% more deals” | Average 22% increase across 50 customers | Customer data |
“Understand real estate workflows” | 100% of customers are real estate teams | Customer base |
Why this matters: - Every claim needs proof - “We’re better” isn’t enough - Specific, verifiable evidence wins
Output: Proof map for all positioning claims
Step 7: Create Battle Cards
Task: Arm your sales team to compete effectively
Battle card structure:
Competitor: [Name]
When you hear:
“We’re already using [Competitor]”
“How are you different from [Competitor]?”
Key differences:
1. [Your advantage 1]
2. [Your advantage 2]
3. [Your advantage 3]
What to say:
“[Competitor] is a great tool for [their use case]”
“We’re different because [specific differentiation]”
“Our customers choose us when [specific scenario]”
Proof points:
[Customer quote comparing you]
[Metric showing your advantage]
[Feature comparison that favors you]
When to walk away:
They need [feature you don’t have]
They’re looking for [use case you don’t serve]
Example Battle Card: vs Salesforce
When you hear: “We’re already using Salesforce”
Key differences:
1. We’re built only for real estate; Salesforce is generic
2. MLS integration is native; Salesforce requires custom integration
3. $200/mo vs $2,000/mo for comparable features
What to say: “Salesforce is a powerful CRM for many industries. We’re different because we’re built exclusively for real estate. That means MLS integration, commission tracking, and transaction management work out of the box; no customization needed.”
Proof points:
“Agents save 5 hours per week vs Salesforce” (customer data)
100% of our customers are in real estate
Native MLS integration vs 3-month custom Salesforce integration
When to walk away:
They need Salesforce’s enterprise features (territories, advanced automation)
They’re a multi-industry company (our vertical focus won’t help)
Output: Battle cards for top 3-5 competitors
Competitive Positioning in Action (Real Example)
Let’s walk through a complete example.
The Company
B2B SaaS for restaurant inventory management. 40 customers, unclear positioning.
Step 1: Map Alternatives
Status Quo: Spreadsheets (mentioned by 100% of customers), Pen and paper inventory counts
Direct Competitors: - MarketMan, BlueCart, Toast Inventory
Adjacent: Generic inventory software, POS systems with basic inventory
DIY: Custom spreadsheet systems
Primary alternative: Spreadsheets (all customers used these before)
Step 2: Analyze Competitors
MarketMan:
Target: All restaurants
Differentiation: “Comprehensive restaurant management”
Weakness: Complex, expensive
BlueCart:
Target: All restaurants
Differentiation: “Automated ordering”
Weakness: Focused on ordering, not forecasting
Toast:
Target: Toast POS customers
Differentiation: “Integrated with Toast POS”
Weakness: Requires Toast POS, basic forecasting
Gap identified: No one focuses specifically on multi-location restaurants and waste reduction
Step 3: Find the Wedge
Customer data:
85% of customers are multi-location (5-20 locations)
Top pain point: “Food waste is killing our margins”
Key value: “Reduced waste by 30-40%”
Unique attributes:
Multi-location sync
Predictive ordering based on historical data
Waste tracking and reduction
Wedge decision: Vertical (multi-location) + Outcome (waste reduction)
Step 4: Competitive Positioning Statement
For multi-location restaurant groups
Who lose thousands monthly to food waste and overordering
Our platform is inventory management for restaurants
That reduces food waste by 30-40%
Unlike spreadsheets and basic inventory systems
We use predictive ordering across all locations to eliminate waste
What changed:
Target: Multi-location (specific) vs all restaurants
Alternative: Spreadsheets (real alternative) vs competitors
Differentiation: Waste reduction (outcome) vs feature list
Category: Same, but with specific focus
Step 5: Results
After repositioning:
Before:
“Restaurant inventory management software”
Competing on features against MarketMan and BlueCart
Average deal: $150/location/month
Sales cycle: 60 days
Win rate: 18%
After:
“Inventory management that reduces waste by 30-40% for multi-location restaurants”
Competing against spreadsheets and status quo
Average deal: $250/location/month (+67%)
Sales cycle: 35 days (-42%)
Win rate: 34% (+89%)
Key lesson: By changing the alternative (spreadsheets) and focusing on outcome (waste reduction) instead of features, they created defensible competitive positioning.
Common Competitive Positioning Mistakes
Mistake 1: Positioning Against Leaders
The error: “We’re Salesforce for small businesses”
Why it fails:
You’re admitting Salesforce is the standard
You’ll always be the “small version”
You’re in their frame
The fix: Position against the alternative your target customer actually uses.
Mistake 2: Generic Differentiation
The error: “Unlike competitors, we have better UX and faster support”
Why it fails:
Every competitor claims this
Subjective and unverifiable
Not defensible
The fix: Use specific, measurable, customer-validated differentiation.
Mistake 3: Feature-Based Positioning
The error: “We have AI-powered analytics, real-time dashboards, and mobile apps”
Why it fails:
Features get copied
Doesn’t explain why you’re different
Becomes a feature checklist war
The fix: Position on approach, methodology, focus, or outcome—not features.
Mistake 4: Positioning Without Customer Data
The error: “We think we should position against Competitor X”
Why it fails:
Customers might not even know Competitor X
You’re guessing at the real alternative
Not based on customer buying behavior
The fix: Interview 10+ customers. Ask what they actually considered.
Mistake 5: Trying to Beat Everyone
The error: “We’re better than Salesforce AND HubSpot AND Pipedrive”
Why it fails:
Can’t be all things to all people
Dilutes your message
Confuses buyers
The fix: Pick one primary alternative and own that positioning.
Validation: Does Your Competitive Positioning Work?
Internal Validation Tests
Test 1: The Sales Team Test
Ask 3 sales reps: “How are we different from [Competitor]?”
Pass: All 3 give the same answer using your positioning
Fail: All 3 give different answers
Test 2: The Competitive Test
Show your positioning statement (hide company name). Show 3 competitor statements.
Can someone identify which is yours based on differentiation alone?
Pass: Your positioning is clearly different
Fail: You sound like everyone else
Customer Validation Tests
Test 3: The Recognition Test
Show positioning to 10 customers. Ask: “Does this match why you chose us?”
Pass: 8+ say “yes, that’s why we chose you”
Fail: <8 agree
Test 4: The Language Test
Ask customers: “How do you describe us compared to alternatives?”
Pass: They use language similar to your positioning
Fail: They describe you completely differently
Market Validation Tests
Test 5: Win/Loss Analysis
Track win/loss reasons for 3 months.
Pass:
Winning against your positioned alternative
Winning for your stated differentiation
Attracting your target customer
Fail:
Losing on price (commodity positioning)
Winning customers outside target
Win reasons don’t match positioning
Resources for Competitive Positioning
Free Templates
Download these to build your competitive positioning:
1. Competitor Analysis Template - Map competitive landscape
2. Alternative Mapping Worksheet - Identify real alternatives
3. Battle Card Template - Arm your sales team
4. Positioning Statement Template - Create positioning with competitive differentiation
Comprehensive Guides
For deeper methodology:
• Ultimate Guide to SaaS Positioning - Complete framework
• B2B SaaS Positioning Framework - 5-step process
• How to Create a Positioning Statement - Step-by-step
• 12 Positioning Statement Examples - Real companies
Need Help?
Option 1: Positioning Intelligence Sprint
We build your competitive positioning in 10 days.
What’s included:
Competitive landscape analysis
Customer interviews to identify real alternatives
Positioning wedge identification
Complete positioning statement
Battle cards for top competitors - Implementation roadmap
Timeline: 10 days
Investment: Contact
Option 2: Free Competitive Teardown
We’ll analyze:
How you currently position vs competitors
What alternatives customers actually consider
Your competitive differentiation gaps
Recommended positioning strategy
Quick wins you can implement
Timeline: 48 hours
Key Takeaways
The Four Competitive Positioning Strategies
1. Change the Category - Create or claim different category
2. Change the Alternative - Position against real alternative, not just competitors
3. Vertical Specialization - Own a specific industry
4. Audience Specialization - Serve specific audience better than anyone
Don’t Position As “Better”
❌ “We’re [Competitor], but better”
✅ “We’re [Different Category] for [Specific Customer]”
❌ “Unlike competitors, we’re easier to use”
✅ “Unlike [Specific Alternative], we [Specific Differentiation]”
The Positioning Wedge
Find the strategic gap where you can win:
What can you do that alternatives can’t?
What do customers value that’s underserved?
Where are competitors not focused?
Validation Is Critical
Test with:
Sales team (can they explain it consistently?)
Customers (does it match why they chose you?)
Market (are you winning for the right reasons?)
Give it 3-6 months to show business impact.
Next Steps
To build your competitive positioning:
1. Map alternatives - Use our Alternative Mapping Worksheet
2. Interview customers - Download Customer Interview Script
3. Analyze competitors - Use Competitor Analysis Template
4. Choose your strategy - Pick one of the four strategies
5. Create positioning - Follow the 7-step framework
6. Build battle cards - Arm your sales team
7. Validate - Test internally, with customers, in market
Or get expert help: - Book Positioning Sprint - We do it for you - Request Free Teardown -
See where you stand
Remember: Don’t position as “better.” Position as different. Different wins. Better is subjective.
Related Resources
Foundation
Ultimate Guide to SaaS Positioning - Complete methodology
B2B SaaS Positioning Framework - 5-step process
How to Create a Positioning Statement - Step-by-step guide
Examples: - 12 SaaS Positioning Statement Examples - Real companies
Positioning Workshop Guide - Team facilitation
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